Texas Salvage Dealer License: Complete Guide
How to get licensed to buy, sell, and rebuild salvage motor vehicles in Texas. Official TxDMV requirements and step-by-step process.
🔧 Quick Facts
- • License Fee: $190 initial, $170 renewal (2-year term)
- • Bond Required: No (salvage dealers are exempt)
- • NMVTIS Registration: Required (federal law)
- • License Authority: Texas Department of Motor Vehicles (TxDMV)
- • Processing Time: 2-4 weeks typically
What is a Texas Salvage Dealer?
A salvage dealer is a person or business engaged in buying, selling, repairing, or rebuilding salvage motor vehicles and nonrepairable motor vehicles. According to TxDMV, this license covers all salvage operations including rebuilders, dealers, and pool operators.
Salvage vs. Nonrepairable Vehicles
- Salvage Vehicle — Can be repaired/rebuilt and eventually titled as "rebuilt"
- Nonrepairable Vehicle — Too damaged to repair; can only be used for parts or scrap metal
Both types receive special titles from TxDMV that are different from regular blue titles.
Who Needs a Salvage Dealer License?
You must be licensed as a GDN or Salvage Dealer if you:
- Buy or sell more than 5 salvage or nonrepairable motor vehicles in a calendar year
- Rebuild more than 5 salvage motor vehicles in a calendar year
You don't need a salvage dealer license if you:
- Buy 5 or fewer salvage/nonrepairable vehicles per year
- Rebuild 5 or fewer salvage vehicles per year
- Already hold a GDN license (as of September 1, 2019, GDN holders can deal in salvage vehicles without a separate license)
💡 2019 Law Change
House Bill 1667 (86th Legislature) allows GDN Motor Vehicle, Motorcycle, Travel Trailer, or Utility Trailer/Semi-Trailer license holders to operate as salvage dealers without a separate salvage license — at the same locations.
Salvage Dealer License Requirements
📍 Location Requirements
- Must have a business location that is not a residence or apartment
- Can only operate at your licensed business location
- Must have a sign and office indicating where records are maintained
- Must comply with all city, county, and state laws (including zoning)
📄 Required Documents
- NMVTIS Number — Federal registration required (see below)
- Sales Tax Permit — From Texas Comptroller
- Assumed Name Certificate — If using a DBA
- Certificate of Filing — For LLCs/Corps (from Secretary of State)
- Franchise Tax Account Status — For LLCs/Corps
💰 Fees
- Initial License: $190 for 2-year term
- Renewal: $170 for 2-year term
- Bond: Not required (salvage dealers are exempt)
NMVTIS Registration (Required)
All salvage dealers are required under federal law to report their vehicle transactions through the National Motor Vehicle Title Information System (NMVTIS).
NMVTIS Facts
- Enforced by the U.S. Department of Justice
- TxDMV requires your NMVTIS number at time of application
- You must maintain registration throughout your license period
- Report all salvage/junk vehicle acquisitions within 30 days
To register, visit vehiclehistory.gov and choose an approved data consolidator. Popular options include Auto Data Direct, Audatex, and others.
How to Apply for a Salvage Dealer License
Register with NMVTIS
Visit vehiclehistory.gov and register with an approved data consolidator. Keep your NMVTIS number handy.
Get Your Sales Tax Permit
Apply online at the Texas Comptroller's website. This is free.
Secure Your Business Location
Find a commercial location (not residential) that meets zoning requirements. Check with your local city/county for any special restrictions on salvage businesses.
Apply Through TxDMV eLICENSING
Submit your application online at TxDMV eLICENSING. Upload required documents and pay the $190 fee.
Wait for Processing
TxDMV will review your application and may inspect your location. Processing typically takes 2-4 weeks.
Selling Rebuilt Vehicles to the Public
⚠️ Important
A salvage dealer license alone does not authorize you to sell rebuilt vehicles to retail customers (the public). If you want to sell rebuilt vehicles to consumers, you need a GDN (Independent Motor Vehicle Dealer) license.
The GDN license requires a $50,000 surety bond and a 5-vehicle display area. However, with the 2019 law change, holding a GDN also allows you to operate as a salvage dealer at the same location without a separate salvage license.
Bottom line: If you plan to rebuild salvage vehicles and sell them to the public, get a GDN license instead. It covers both retail sales and salvage operations.
Frequently Asked Questions
Do I need a bond for a salvage dealer license?
No. Salvage dealers are exempt from the surety bond requirement. This is different from GDN dealers who need a $50,000 bond.
Can I run a salvage business from home?
No. TxDMV requires a commercial business location that is not a residence or apartment complex. You must also comply with local zoning laws, which often restrict salvage operations to industrial areas.
What's the difference between a salvage dealer and used auto parts recycler?
A salvage dealer license is issued by TxDMV and covers buying/selling/rebuilding salvage vehicles. A used auto parts recycler license is issued by TDLR and covers the parts business. If you're selling used parts, you may need both licenses — contact TDLR for used parts recycler requirements.
How do I title a rebuilt salvage vehicle?
After rebuilding a salvage vehicle, you must get it inspected through the Texas Department of Public Safety (DPS) Salvage Vehicle Inspection program. Once passed, you can apply for a rebuilt title at your county tax office. The title will be branded "REBUILT" on the front.
Need a Dealer Bond Instead?
If you plan to sell rebuilt vehicles to the public, you'll need a GDN license with a $50,000 bond. We can help.
Get a GDN Dealer Bond Quote →Fast approval • Competitive rates • Help available