Retail General Distinguishing
Number
Wholesale General Distinguishing
Number
Franchised Dealer License
Converter License
Salvage Dealer License
Manufacturer License
Distributor License
In Transit License
Vehicle Lessor License
Lease Facilitator License
Retail GDN licenses or what is known as a Texas dealer
license are the basic dealer licenses and are
broken down into 5 categories. If you want to sell vehicles
from multiple categories you will need to have a license for
each category. I want to repeat that, if you want to sell
vehicles from multiple categories you will need to have a
license for each category. So if you want to want to sell
motor vehicles AND travel trailers you will need a motor
vehicle license AND a travel trailer license.
The five categories are
Motor Vehicle, Motorcycle, Travel Trailers, Trailer/Semi
Trailers, and Independent Mobility Motor Vehicle Dealer
Always remember
Retail dealers can sell RETAIL to a customer on the lot or
WHOLESALE to another dealer or at a DEALER AUCTION
Motor Vehicle GDN Dealer License. A motor vehicle
GDN allows to Buy, Sell, or Exchange Used Cars, Trucks,
Motor Homes, & Neighborhood Electric Vehicles, you May Buy,
Sell, Repair, or Rebuild Salvage Motor Vehicles &
Nonrepairable Motor Vehicles, a Motor Vehicle GDN allows you
to Use Dealers Temporary Tags, Buyer’s Temporary Tags, &
Metal Dealer License Plates ONLY on Motor Vehicles and buy
the way we will cover dealers temporary tags, buyers
temporary tags and metal dealer license plates later in the
course, this license DOES requires you to Provide a Dealer
Surety Bond The license allows you to sell vehicles retail
to customers on the lot, or wholesale directly to other
dealers or through dealer only auctions.
Motorcycle GDN. A motorcycle GDN allows you Buy,
Sell, or Exchange Used Motorcycles, Mopeds, off highway
vehicles, which would be ATV’s ROV’s and UTV’s or
autocycles, It also allows you to Buy, Sell, Repair, or
Rebuild Salvage Motor Vehicles & Nonrepairable Motor
Vehicles
May Use Dealer's
Temporary Tags, Buyer's Temporary Tags, & Metal Dealer
License Plates ONLY on Motorcycles, Mopeds or off highway
vehicles
And requires you
to Provide a Dealer Surety Bond
Travel Trailers. A travel trailer GDN allows you to
buy, sell, or exchange used travel trailers. By the way a
travel trailer is defined as a house trailer-type vehicle or
a camper trailer that is a recreational vehicle or that is
less than eight feet six inches in width or 45 feet in
length, and is designed primarily for use as temporary
living quarters in connection with recreational, camping,
travel, or seasonal use it is NOT a permanent dwelling; and
is NOT a utility trailer, enclosed trailer, or other trailer
that does not have human habitation as its primary function.
This license
allows you to Buy, Sell, Repair, or Rebuild Salvage Motor
Vehicles & Nonrepairable Motor Vehicles. You May Use
Dealer's Temporary Tags, Buyer's Temporary Tags, & Metal
Dealer License Plates ONLY on Travel Trailers and this type
of license Does NOT Require Dealer a Surety Bond
Trailer/Semitrailer. A trailer/semitrailer GDN
allows you to buy, sell, or exchange, NEW or used utility
and semitrailers. May Buy, Sell, Repair, or Rebuild Salvage
Motor Vehicles & Nonrepairable Motor Vehicles. You may Use
Dealer's Temporary Tags, Buyer's Temporary Tags, & Metal
Dealer License Plates ONLY on Trailers/Semitrailers, it Does
NOT Require a Dealer Surety Bond Please be aware this is the
ONLY GDN license category that allows you to sell brand new
vehicles without a franchised dealer license.
Independent Mobility Motor Vehicle Dealer. An
independent mobility motor vehicle GDN allows you to new and
used vehicles that have been converted into mobility
vehicles at a specific location. You must have an agreement
with the licensed franchise dealer of the underlying chassis
of the mobility vehicle. A mobility motor vehicle is
designed to transport a person with a disability. This type
of license also requires the applicant hold a converter’s
license.
All independent motor vehicle GDN license types with
the exception of wholesale, wholesale auction, and
Independent Mobility Motor Vehicle dealers may operate as a
salvage dealer as of Sept 1, 2019, without a separate
salvage license as long as it is ONLY at the same business
location for which the GDN license was issued. A Sales & Use
Tax Permit, Sales Tax ID Number, and NMVTIS Number is Also
Required if Operating as a Salvage Dealer. Once again
wholesale, wholesale auction, and Independent Mobility Motor
Vehicle dealers are excluded
A
Wholesale GDN or wholesale dealer license allows you to
purchase and sell vehicles to other wholesale dealers or at
dealer auctions. You may not sell a vehicle to a person
without a dealer’s license, such as a retail customer on a
display area. You may never sell a vehicle to the general
public with a wholesale dealer license. A wholesale license
allows you to Buy, Sell, or Exchange Used Vehicles,
Including Motor Vehicles, Motorcycles, & Travel Trailers May
Buy, Sell, or Exchange New or Used Trailers and/or
Semitrailers , it Does Not Require Display Lot but you Must
Provide a Dealer Surety Bond
If you hold a wholesale dealer license and want to
sell vehicles to the general public you will need to amend
your license to a retail dealer license. Retail and
wholesale dealers may not have offices in the same business
structure for example as shared roofline, regardless whether
they have a different suite number. If other wholesale
dealers are in the same building you will need to move to a
new location if you are amending your wholesale dealer
license to a RETAIL dealer license.
Wholesale Motor Vehicle
Auction License General Distinguishing Number
or wholesale
motor vehicle auction dealer license is a little bit
different. A wholesale motor vehicle auction DEALER license
allows the licensee to offer vehicles for sale at a dealer
auction and may also hold auctions.
Changing a
license type from wholesale to retail requires an amendment
application to be submitted in eLICENSING.
A
franchised dealer license is required to sell new motor
vehicles. A franchised dealer may sell NEW and USED vehicles
A franchised dealer is referred to as a FRANCHISEE. If a
franchisee also wants to sell used motor vehicles they will
need to obtain a retail GDN even if only selling new
vehicles and franchisees may buy or sell both new and used
vehicles. A franchise license is required to sell all types
of new motor vehicles including motorcycles, travel
trailers, ATVs, and ROVs.
A franchise motor vehicle dealer may operate several
dealerships in the same city with the same GDN. Each
separate location, however, does require a separate
franchise license. Franchised dealers are authorized to sell
specific line-makes and must amend their license when adding
or removing line-makes to a location.
A converter license is
required if you assemble or install special equipment to a
vehicle chassis before offering the vehicle for retail sale.
A"conversion" means a motor vehicle that has been
substantially modified by a person other than the
manufacturer or distributor of the chassis of the motor
vehicle; and has not been the subject of a retail sale.
A
"converter" means a person who before the retail sale of a
motor vehicle:
assembles, installs, or affixes a body,
cab, or special equipment to a chassis; or substantially
adds, subtracts from, or modifies a previously assembled or
manufactured motor vehicle.
Neither converters nor their
representatives are allowed to sell the new motor vehicles
they convert directly to Texas consumers, including
municipalities. Only dealers that are franchised and
licensed for the underlying line-make of the converted
vehicle are allowed to sell converted vehicles to Texas
consumers.
Remember converters cannot sell to the public
if they do not have a franchise license. The conversion may,
but does not have to, include special equipment.
A salvage dealer is engaged
in the business of buying, selling, repairing, or rebuilding
salvage motor vehicles and nonrepairable motor vehicles
A
salvage motor vehicle has been damaged or is missing a major
part causing the cost to repair the vehicle to be higher
than the actual cash value of the vehicle before it was
damaged. A salvage motor vehicle may be repaired (or
“rebuilt”) so that it can be titled as a rebuilt motor
vehicle and registered to operate on public roads. Rebuilt
vehicles MUST pass inspection to be titled and sold as used
motor vehicles using a GDN license.
You must be
licensed as a GDN or a salvage dealer if you:
buy or sell
more than five salvage or nonrepairable motor vehicles in a
calendar year; or rebuild more than five salvage motor
vehicles in a calendar year. All retail and salvage
inventory must be kept separate
Independent GDN’s except
for wholesale or independent mobility motor vehicle dealers
May Operate as a Salvage Dealer Without Separate Salvage
License
A manufacturer license is required if you assemble or manufacture new vehicles for sale by franchised motor vehicle dealers or what we call FRANCHISEES. Manufacturers are prohibited from selling vehicles directly to the general public. They must sell the vehicles they manufacture to franchisees.
A distributor license is required for anyone that distributes, and or, sells vehicles to franchised motor vehicle dealers. They sometimes act as an intermediary between a vehicle manufacturer and a franchised motor vehicle dealer.
Allows Drive-a-Way Operator to Transport & Deliver a Vehicle in Texas from the Manufacturer or Another Point of Origin. Drive-a-Way Operators May Apply For, Receive, & Attach Metal In-Transit License Plates to Vehicles they Transport.
A vehicle lessor license is required for any person that offers vehicles for lease of more than 180 days. A dealer may not have the word lease or leasing in the dealership name unless the dealer has a vehicle lessor license. Retail and WHOLESALE license holders and vehicle lessor license holders may not share an office.
A lease facilitator license
acts as a leasing agent for a vehicle lessor licensee. This
person acts as an intermediary between the vehicle lessor
and a person leasing a vehicle. Retail license holders and
lease facilitator license holders may not share an office.
Also I want you to be aware A Lessor or Lease
Facilitator may only share an office with another dealer if
the other dealer or business is 100% owned by the same
Lessor or Lease Facilitator.