Motor Vehicle Dealers - Used Vehicles Only

The Motor Vehicle Dealer's Surety Bond is a regulatory requirement for used motor vehicle dealers operating in Texas. This bond serves as a financial guarantee that the dealer will conduct business in accordance with state laws and regulations governing motor vehicle sales.

Used motor vehicle dealers in Texas must obtain this bond as part of their licensing requirements. The bond ensures that dealers operate ethically and comply with all applicable state statutes, including proper handling of titles, accurate disclosure of vehicle conditions, and adherence to consumer protection laws.

This bond protects consumers and the state from financial losses resulting from the dealer's fraudulent, dishonest, or unlawful business practices. If a dealer violates state regulations or causes financial harm to customers, claims can be made against the bond to compensate affected parties.

The bond amount is $50,000 and has a two-year term, with the effective date beginning on the first of the month and expiring at the end of the previous month two years later. The bond is renewable and must include all lot addresses where the dealer conducts business. Multiple locations within the same city can be covered under one bond, but separate licenses and bonds are required for each city where the dealer operates.