California Dealer Academy is a California DMV-accredited dealer education provider (occupational licensing #CCC0007). We do not provide licensing education for Texas. This page is an informational summary of Texas's requirements, sourced from the Texas Department of Motor Vehicles (TxDMV). For approved Texas education providers, visit https://www.txdmv.gov/dealers.
To get a dealer license in Texas: apply through the Texas Department of Motor Vehicles (TxDMV) via the eLICENSING portal, choose your license type, submit a $50,000 surety bond (separate bond required per license category), and pay the required fees. Complete 6 hours of state-approved pre-licensing education ($150 max). Licenses are issued for 2-year terms.
| License | Description | Who Needs It |
|---|---|---|
| General Distinguishing Number — Independent Motor Vehicle | License to buy, sell, or exchange used motor vehicles (cars, trucks, SUVs, vans). Covers most independent used car dealers. | Independent dealers buying or selling used vehicles |
| GDN — Wholesale Only | Buy and sell vehicles only to other licensed dealers. No retail sales to the public. | Wholesale-only dealers |
| GDN — Independent Motorcycle | Dealers selling only motorcycles. Exempt from the education requirement. | Motorcycle-only dealers |
Source: TxDMV
Texas requires 6 hours of pre-licensing education for new dealer applicants (Texas Transportation Code §503.029, Texas Admin. Code §215.161). Course cost is capped at $150. Online only. Must be from a Texas institution of higher education or a Texas-domiciled motor vehicle trade association.
Renewal applicants (licensed less than 10 years) require 3 hours. The training is one-time (no retake for subsequent renewals).
Applies to: Independent motor vehicle GDN applicants. Not required for motorcycle, travel trailer, or wholesale-only dealers.
Source: TxDMV Dealer Education
Texas requires a $50,000 surety bond for most dealer license types. A separate bond is required for each license category — a dealer holding two categories must post two bonds. A separate bond is required for each license category — a dealer holding two categories must post two bonds. The bond must cover the full 2-year license term. A separate $50,000 bond is required for each GDN category. A dealer holding two categories must post two bonds.
Exemptions: Independent travel trailer dealers; Trailer/semi-trailer dealers.
Source: TxDMV Licensing Guide
Office: Must have a permanent, enclosed office structure with a desk, chair, filing cabinet, and working phone. Cannot share space with another licensed dealer unless approved by TxDMV.
Display Area: Minimum display area required. Separate requirements for sharing display areas and salvage dealers.
Signage: Permanent exterior sign with business name visible from the street.
Hours: Must maintain posted business hours. Texas Blue Law restricts Sunday sales — dealers must choose Saturday or Sunday operations.
Source: TxDMV Licensing Guide
Texas dealer licenses are valid for 2 years. No continuing education is required after the initial pre-licensing course (one-time requirement).
Submit your application through the Texas Department of Motor Vehicles eLICENSING portal. Required documents typically include: proof of identity for all owners, Secretary of State business filing (if applicable), surety bond, education certificate, and proof of an established business location. Contact Motor Vehicle Division: https://www.txdmv.gov/dealers.
If you're a California dealer exploring Texas, here is how the requirements compare:
| Category | California | Texas |
|---|---|---|
| Education | 6-hour DMV-approved course (CA CVC §11704.5) | Like CA, Texas requires 6 hours of pre-licensing education. Unlike CA, the course is one-time (no re-take for renewals), costs are capped at $150, and providers must be Texas institutions or trade associations — CA providers cannot serve Texas. |
| Bond | $50,000 per dealer (CA CVC §11710) | Texas requires a separate $50,000 bond per GDN category. A dealer holding both motor vehicle and motorcycle GDNs posts two bonds totaling $100,000. CA requires one bond covering all categories. |
| License Term | 2-year cycle | Texas licenses are issued for a fixed 2-year term tied to the bond period. CA issues licenses on a 2-year cycle but bond and license dates may be independent. |
The key difference: Texas requires a separate $50,000 bond for each GDN category — a dealer with two categories posts two bonds ($100,000 total). This is the single most surprising fact for California dealers exploring Texas expansion.
Yes. 6 hours of online instruction, capped at $150 for new applicants. Renewal applicants need 3 hours.
The base license fee is $700 A $50,000 surety bond is required. Add up to $150 for the required education course. Other costs may include business registration, office setup, and signage.
Texas requires a separate bond per license category. A dealer holding two categories posts two bonds ($100,000 total). In California, one bond covers all categories — this is the single largest cost difference between the two states.
No. Texas requires education from a Texas-based institution or trade association approved by TxDMV. California Dealer Academy is not approved to provide Texas dealer education.
If you're licensing in California, explore our complete guides:
California Dealer License Guide City-by-City Resources California Bond Requirements
Page verified 2026-08-03. Source: Texas Department of Motor Vehicles. For the most current requirements, always consult the state agency directly.
