Texas Dealer License Training

How to Get a Texas Dealer License: Complete Requirements and Application Process

Obtaining a Texas dealer license requires more than submitting an application. Before a General Distinguishing Number (GDN) can be issued, an applicant must satisfy requirements involving the dealer application, criminal history, business location, office, display area, business sign, business hours, dealer surety bond, business registration, records, employment verification, federal tax identification, and, for certain independent motor vehicle dealers, a required educational course.

The Texas Department of Motor Vehicles (TxDMV) administers the dealer licensing process through its online eLicensing system. The exact requirements depend on the type of dealer license and GDN category being requested.

Texas Dealer License Requirements at a Glance

1. Complete 6 Hour Video Course
2. Complete the required criminal history disclosures and provide court records when applicable.
3. Establish a compliant business location and office.
4. Establish a compliant retail display area when required.
5. Install a permanent business sign that meets Texas requirements.
6. Establish and post the required business hours.
7. Obtain and maintain the required dealer surety bond.
8. Register the business name with the Texas Secretary of State when required.
9. Obtain applicable licensing from the Texas Office of Consumer Credit Commissioner (OCCC) if financing vehicles.
10. Establish and maintain required vehicle transaction records.
11. Complete Form I-9 employment eligibility verification for applicable owners, managers, and employees.
12. Obtain an Employer Identification Number (EIN) when required.
13. Pay the applicable dealer license and plate fees.

1. Complete 6 Hour Video Course

Most persons must complete a 6 hour video training course before applying for a Texas Dealer License. The course price is $149 and includes several benefits after you complete the course. For all benefits view our Pricing page.

You can enroll in the TxDMV Approved Dealer Pre-License Course here.

After you complete the course you can visit the Texas Department of Motor Vehicles website and use the dealer eLicensing system to submit an application and pay applicable fees.

2. Texas Dealer License Criminal History Requirements

TxDMV reviews the criminal history of applicants, including the owners and managers listed on the dealer license application.

Owners and managers must disclose applicable prior offenses, including convictions and offenses that resulted in deferred adjudication, regardless of the jurisdiction in which the offense occurred.

Applicable convictions and deferred adjudications must be disclosed even when the sentence has been completed or the record is otherwise considered dismissed or expunged, subject to the specific requirements of Texas law.

Does a Criminal Record Automatically Disqualify Someone From Getting a Texas Dealer License?

No. A criminal history does not automatically disqualify a person from obtaining a Texas dealer license. TxDMV reviews criminal history on a case-by-case basis under the applicable laws and administrative rules.

Applicants should answer all criminal-history questions accurately and completely. False statements or omissions during the licensing process can result in denial, cancellation, revocation, or suspension of a license and may also result in criminal consequences.

Do Criminal Records Have to Be Submitted With a Texas Dealer License Application?

When an applicant has a criminal history that must be disclosed, applicable court records should be submitted with the dealer license application. Court records can generally be obtained from the district court or county where the offense occurred.

Do Dealers Have to Report New Criminal Offenses After Getting a License?

Applicable new convictions or deferred adjudications involving an owner or manager must be reported to TxDMV as required by Texas law. License holders can use the eLicensing system and the appropriate license amendment process when reporting required changes.

Criminal history may also be reviewed during new license applications, renewal applications, and certain amendment applications involving changes to ownership or management.

3. Texas Dealer Business Location and Building Requirements

A Texas retail dealer must have an established place of business used for the purpose of selling motor vehicles. The business location must satisfy applicable TxDMV requirements as well as all local zoning and occupancy requirements.

The business must be located in a building with connecting exterior walls on each side. The building must comply with applicable local zoning requirements for the operation of a dealership.

Can I Rent a Building for a Texas Dealer License?

Yes. A dealership location may generally be owned or leased, but when leased, the lease must meet the applicable minimum term requirements. The source requirements for this course specify a lease term of at least two years.

Does a Texas Dealer Need an Office?

Yes. A dealer must maintain an office at the business location for the operation of the dealership.

The office cannot be located within an apartment house, hotel, motel, or rooming house. If a dealer office is located at a private residence, it must be completely separate from the residence and comply with applicable city or county zoning requirements.

What Should I Check Before Renting or Buying a Dealer Location?

Before signing a lease or purchasing property for a dealership, applicants should contact the local planning and zoning department at the appropriate city hall or county courthouse.

The applicant should confirm that the property is legally authorized for the intended dealership use before committing to the location.

Is a Certificate of Occupancy Required for a Texas Dealer License?

A Certificate of Occupancy (COO) is required when the applicable city or county requires one. When required, the certificate should be in the name of the dealer's business and identify an appropriate use, such as motor vehicle sales.

TxDMV enforcement officers may request documentation showing that the dealership satisfies applicable zoning and occupancy requirements.

What Must Be Inside a Texas Dealer Office?

The dealer office must include, at a minimum:

• A desk
• Two chairs
• Internet access
• A working telephone listed in the dealership's name

The dealer must have its own telephone number. The dealer telephone number may not be shared with another dealer. Wireless internet access may satisfy the internet requirement.

If a dealer shares a building with another business, the dealer must have its own office area that meets the applicable requirements.

How Many Texas Dealers Can Operate From One Building?

Under the requirements covered in this course, a business building may accommodate up to four retail dealers and up to eight wholesale dealers, provided all applicable requirements are satisfied.

4. Texas Dealer Display Area Requirements

A retail dealer must have a display area large enough to display at least five vehicles of the type for which the GDN is issued.

The display spaces must be reserved exclusively for the retail dealer's inventory. The spaces cannot be shared or intermingled with another business, public parking area, driveway to the office, or another dealer's display area.

The display area may be located inside or outside the building, provided it satisfies applicable TxDMV and local requirements.

Can a Texas Dealer Display Area Be Gravel?

The display area must have a hard surface, such as concrete or gravel, subject to local zoning requirements. Some cities or counties may require the dealership display area to be paved.

A driveway cannot be used as the dealer display area.

Can Two Businesses Share a Dealer Display Area?

A retail dealer cannot simply intermingle its inventory with another business's parking or display area.

If a dealer shares a display or parking area with another business, including another dealership, the dealer's inventory must be separated from the other business's area by a material object or barrier that cannot be readily moved.

We are here to help you start obtain a Texas Dealers License (GDN)!