What is an Amarillo Auto Dealer Bond?
In Amarillo, independent motor vehicle dealers must obtain a General Distinguishing Number (GDN) from the TxDMV. To get this GDN license, you must first file a $50,000 auto dealer surety bond.
A surety bond acts as a financial guarantee that your dealership will follow state laws, transfer titles correctly, and avoid fraudulent business practices. Unlike insurance, this bond protects the public and the state, not the dealership.
How Much Does an Amarillo Auto Dealer Bond Cost?
You only pay a premiumāa small percentage of the $50,000 bond amountāfor the two-year term. Pricing is primarily determined by your personal credit score and industry experience.
Estimated 2-Year Premium Rates
| Credit Score | Rate | Estimated 2-Year Cost |
|---|---|---|
| Excellent (700+) | 0.75% - 1% | $375 - $500 |
| Good (650 - 699) | 1.5% - 3% | $750 - $1,500 |
| Fair/Poor (Under 649) | 4% - 10% | $2,000 - $5,000 |
Can I Get a Texas Dealer Bond with Bad Credit?
Yes. We work with Amarillo applicants with all credit types. While premiums are higher (4%ā10%) for lower credit scores, specialized surety markets allow almost anyone to get the bond they need to start their dealership.
Steps to Get Your Dealer License in Amarillo
- Business Entity: Register your business with the Texas Secretary of State and get an EIN. DBAs must be registered with the Potter or Randall County Clerk.
- Permanent Location: Secure a location that meets local Amarillo zoning rules. You must have a display lot for at least 5 vehicles.
- Dealer Training: New applicants must complete a 6-hour TxDMV-approved pre-licensing course.
- Surety Bond: Purchase your $50,000 Texas Motor Vehicle Dealer Bond.
- Submit Application: Use the TxDMV eLICENSING portal to submit your bond, application, and fees.
Frequently Asked Questions
How much is the auto dealer bond in Texas?
The bond amount is $50,000, but you only pay a premium starting as low as $375 for two years.
How much does a $50,000 surety bond cost in Amarillo?
Cost ranges from $375 for excellent credit to over $2,500 for poor credit.