Motor Vehicle Dealers - Used Vehicles Only

The Motor Vehicle Dealer's Surety Bond is a financial guarantee required by the State of Texas for businesses engaged in buying and selling used motor vehicles. This bond ensures that dealers comply with state regulations and conduct business in an ethical manner.

Who Needs This Bond: Used motor vehicle dealers operating in Texas must obtain this bond as part of their licensing requirements. Each dealership location requires a separate bond, and all lot addresses must be specifically listed on the bond form. Dealers operating in multiple cities need separate licenses and bonds for each city.

Protection and Coverage: The $50,000 bond protects consumers and the state against financial losses resulting from the dealer's failure to comply with applicable laws and regulations. This includes protection against fraudulent practices, failure to transfer titles properly, or other violations of motor vehicle dealer regulations.

Bond Terms: This bond has a 2-year term and must be effective on the first day of a month, expiring at the end of the month two years later. The bond is renewable upon expiration. Texas requires an embossed seal on all Power of Attorney documents - sticker seals are not acceptable.