Car dealerships are required by state law to purchase a Texas motor vehicle dealer bond and file the surety bond with the DMV before you can receive an auto dealer license. A dealership bond is designed to protect customers from dealers who commit fraud. Call us at 855-590-8550 or submit your application today!
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How Much Does a Texas Motor Vehicle Dealer Bond Cost?
The cost of your dealership surety bond is calculated using a variety of factors, including the insured’s credit score and financial credentials, the amount of the bond and how you choose to finance the bond premium. If you qualify with a standard company, which requires good to fair credit, you can expect a premium between $250.00 – $750.00.
In Texas, it takes more than having a car for sale to obtain an auto dealership license. You have to apply for a license and you will need a bond. You must provide $25,000 of coverage that will be in effect for two years.
In Dallas, Fort Worth, or Houston, it may be called a car dealer bond, in Austin a DMV bond. No matter what part of Texas you open your dealership or whatever you call it, it is needed to protect your customers.
If an auto dealer conducts business unethically, the dealership bond helps customers and other affected entities recover financial losses that may have been experienced. A bonded dealership can generally be trusted to follow industry regulations.
Look to TMD Surety Bonds, we work with multiple surety bond companies to make sure you get your Texas Motor Vehicle Bond the same day, possibly in minutes.