Texas Automobile Dealer Motor Vehicle Registration Bond
If your Texas dealership is being authorized by a county tax assessor-collector to operate as a dealer deputy, you may be required to post a surety bond before performing authorized motor vehicle title and registration functions.
Lavon Insurance can help you apply for the Automobile Dealer Motor Vehicle Registration Bond required by your county.
What Is an Automobile Dealer Motor Vehicle Registration Bond?
Texas county tax assessor-collectors may authorize qualifying motor vehicle dealers to act as dealer deputies.
A dealer deputy may be authorized to perform certain motor vehicle title and registration functions that would otherwise be handled through the county tax office.
As part of that authorization, the dealer deputy must post a surety bond payable to the county tax assessor-collector. The bond is conditioned on the dealer’s proper accounting for and remittance of fees collected while performing the authorized services.
The exact bond amount and additional requirements can depend on the county and the scope or volume of transactions the dealer is authorized to process.
What Is a Texas Dealer Deputy?
Licensed Dealer
A dealer deputy must hold an applicable Texas General Distinguishing Number, or GDN, for the type of vehicle involved.
Title & Registration Functions
A dealer deputy may be authorized to process qualifying title and registration transactions under authority delegated by the county tax assessor-collector.
County Authorization
Dealer-deputy status is granted through the applicable county tax assessor-collector rather than automatically through the dealer’s GDN.
Using webDEALER Does Not Automatically Mean You Need This Bond
Texas licensed dealers use TxDMV’s webDEALER system to electronically process title and registration transactions.
However, simply having a webDEALER account does not automatically make a dealership a dealer deputy.
This bond is associated with dealers that have actually been deputized by their county tax assessor-collector and are subject to the county’s dealer-deputy bonding requirements.
What Does the Dealer Registration Bond Guarantee?
Proper Accounting
The dealer is expected to properly account for money and fees collected while performing authorized registration functions.
Fee Remittance
The bond supports the dealer deputy’s obligation to remit applicable collected fees to the county as required.
County Protection
The county tax assessor-collector is the obligee to whom the dealer deputy bond is payable.
How Much Dealer Registration Bond Do I Need?
Unlike the standard $50,000 Texas Motor Vehicle Dealer GDN Bond, there is not one single bond amount that should be assumed for every dealer-deputy situation.
The applicable county tax assessor-collector determines dealer-deputy requirements and may establish the required bond amount based on the dealer’s authorized activity.
Before purchasing the bond, obtain the bond requirement or bond form from the county so the surety can issue the correct amount and wording.
Dealer Registration Bond vs. $50,000 GDN Dealer Bond
$50,000 Motor Vehicle Dealer Bond
Associated with the licensing requirements for certain Texas motor vehicle dealer GDN classifications.
This is generally the bond a qualifying independent dealer obtains as part of becoming or remaining a licensed Texas dealer.
Motor Vehicle Registration Bond
Associated with a dealer being authorized by a county tax assessor-collector to operate as a dealer deputy.
It guarantees obligations related to authorized title and registration activity, including accounting for and remitting collected fees.
The bond amount depends on the applicable county requirement rather than automatically being $50,000.
How to Obtain a Dealer Motor Vehicle Registration Bond
Confirm County Requirements
Determine whether your county is requiring you to post a bond as part of becoming or continuing as a dealer deputy.
Confirm the Bond Amount
Obtain the required amount and any county-specific bond form or instructions.
Apply Online
Complete the surety bond application with your dealership and county information.
Submit the Bond
Provide the issued bond to the county tax assessor-collector according to the county’s instructions.
Information You May Need
- Legal dealership name
- DBA or assumed name, if applicable
- Dealership physical address
- Texas GDN information
- County requiring the bond
- Name of the county tax assessor-collector
- Required bond amount
- Requested bond effective date
- County-provided bond form, if applicable
- Dealer-deputy agreement or instructions, if provided
- Ownership information requested by the surety
Texas Motor Vehicle Surety Bond Assistance
Lavon Insurance helps Texas dealerships obtain several different types of motor vehicle surety bonds.
Online Application
Start your Automobile Dealer Motor Vehicle Registration Bond application online.
Dealer Bond Options
We can assist with dealer registration bonds, $50,000 GDN bonds and other available motor vehicle surety products.
Personal Assistance
If you aren’t sure which dealer bond your county or state licensing authority is requesting, contact us before purchasing.
Dealer Motor Vehicle Registration Bond FAQs
What is an Automobile Dealer Motor Vehicle Registration Bond?
Is this the same as the $50,000 Texas Motor Vehicle Dealer Bond?
Does every Texas automobile dealer need this bond?
Does using webDEALER mean I need the bond?
Who requires the dealer registration bond?
How much is the bond?
What does the bond guarantee?
Can I apply for the bond online?
Start Your Texas Dealer Registration Bond Application
If your county tax assessor-collector has asked your dealership to provide a Motor Vehicle Registration Bond as part of your dealer-deputy authorization, Lavon Insurance can help you start the surety bond process.
Bond amounts, eligibility, premium and underwriting requirements vary by county, applicant and surety. Confirm the required bond amount and form with your county tax assessor-collector before purchasing.