Texas Dealer Frequently Asked Questions
How do I get a dealer license in Texas?
In order to get a Texas dealer license you will need to complete a Texas Department of Motor Vehicles approved video course, create a business entity, get a Texas Dealer Surety Bond, have a location that meets zoning requirements, and some dealers must be fingerprinted after the TxDMV reviews your dealer license application. The entire startup process if covered extensively in yourTexas dealer pre license course. Learn more at our Get Licensed Page.
What are the dealer license education requirements in Texas?
Texas Transportation Code 503.029 and Texas Statutes requires 6 hours of pre-license training to be completed before applying for the dealer license. The Texas Motor Vehicle Board requires the training be viewed via online video.
Are the Automobile Dealer Training Association courses approved by the TxDMV?
Yes, the Automobile Dealer Training Association Texas Dealer Pre-License Course is and Dealer Renewal Courses are approved by the Texas Department of Motor Vehicles. The courses have been extensively reviewed by the TxDMV and has been approved since 2021. The courses meet the state's mandated dealer license education requirements.
How often must I take a Texas dealer education course.
Only once! When you complete the dealer pre-license course, state law never requires you to take the course again. Your Texas Dealer Pre-License Course Certificate of Completion never expires. You can apply for your license this year, next year, or five years from now. Take the course once and you never take another course. The Texas Dealer Renewal course is for only for dealers that had less than 10 years experience when the mandated training law went into effect. The Automobile Dealer Training Association Texas Dealer Pre-License Course and Dealer Renewal Courses are approved by the Texas Department of Motor Vehicles. The courses have been extensively reviewed by the TxDMV and has been approved since 2021. The courses meet the state's mandated dealer license education requirements.
So I do not have to take the Texas Dealer Renewal Course every year?
No! Texas has no annual dealer license continuing education requirement. When you have completed your Pre-License Course you do not have to take the renewal course. The renewal course is for only for dealers that were licensed for less than 10 years when the law changed. Take the Pre-License Course once and you are done. Be sure to save your dealer course Certificate of Completion that you download when you finish watching all the course videos.
Where is the Automobile Dealer Training Association located?
The Automobile Dealer Training Association is located in Dallas at 3232 McKinney, Dallas, Texas 75204. However, the dealer pre-license course can be taken online at any time. You can learn more about the Automobile Dealer Training Association on the About Us Page.
How can I found out about what others are saying about the ADTA dealer education courses?
Before you enroll in the course we encourage you to read the real reviews from other Texas dealers that have taken our dealers courses. Just click through all 20 pages of our student reviews on the Texasdealers.com Reviews Page. Our reviews are real, the are not AI generated, nor does any reviewer hold any type of position with the Automobile Dealer Training Association.
What is covered in the Texas dealer pre license course?
In your pre license course you will learn how easily complete your pre-license steps. Pre-license steps are some steps you must complete before you apply for your Texas dealer license, or what the state refers to as a General Distinguishing Number or GDN. You will find out how to find the cheapest bonds we will also show you how to complete and submit all the dealer license application forms correctly for quicker dealer license approval. You will learn how to complete all the transaction documents during a deal and easily maintain records. You will learn how to use your Texas dealer license plates as well. You will learn how dealer software can get loans for every customer, complete all deal paperwork, and get you into profitable buy here pay here. The mandated course also covers federal dealer laws and advertising. When you complete the mandated course you will receive a link to access several hours of additional training content and discount codes for dealer produts that are not available anywhere else. Please view our Pricing page for full, transparent pricing.
Can I take the approved Texas Dealer Pre-License Course in person?
No. The state law is very clear, dealers can only complete the course online. If you have ever watched a youtube video you can complete the online dealer pre-license course. You will just register, create a username and password, watch all the course videos, then download your Official Certificate of Completion that never expires
How much does a Texas dealer license (GDN) cost?
The initial licensing fee for a Texas GDN is $700 for the first two years which breaks down to $350 per year. Each time you renew your license every two years the fee is $400 for the two year renewal which breaks down to $200 per year. The required dealer pre-license course is $149. You also must pay about $90 for each dealer license plate you order. Other startup costs include your dealer surety bond and business registration setup including filing your business entity with the Texas Secretary of State and obtaining an IRS Employer Identification Numbe or "Tax ID". If you need assistance setting up your Texas Secretary of State filing and/or your Federal Tax ID Number you can visit our Preferred Partner to handle these filings for you. Please visit our Pricing page to view our fully transparent pricing and find out everything that is included in addition to your mandated training with no additional after course charges or membership fees.
Does a Texas dealer license allow me to enter dealer only auctions?
Yes. Your Texas dealer license gives you access to dealer auctions throughout Texas and across the United States. You can purchase vehicles remotely through dealer auctions or Manheim Dealer Auction's OVE and have them transported directly to your Texas dealership. Our Texas Dealer Pre-License Course provides extensive coverage of dealer auctions helping you understand how to use these resources effectively.
Does the Automobile Dealer Training Association help with completing all the Texas dealer license application documents?
Yes, we complete all the required dealer license application paperwork in your Texas dealer pre-license training course. We also provide discount codes you can use for any assistance with SOS filings, tax id applications, labor posters, credit card merchant accounts, dealer software, and much more. You will receive an extensive list of discount codes and addtional profit videos after you complete the 6 hour mandated dealer video course. You can learn more about your Texas Dealer Pre-License Course here.
What are the different types of dealer licenses issued by the State of Texas?
The State of Texas issues several different types of dealer licenses. The most common license is a Retail General Distinguishing Number, or GDN which allows you to buy or sell used cars, trucks, motor homes, & neighborhood electric vehicles. It also allows you to buy, sell, repair, or rebuild salvage motor vehicles. A motorcycle GDN allows you to buy and sell motorcycles. A travel trailer GDN allows you to sell travel trailers. A trailer/semi-trailer GDN allows you to buy and sell new or used utility trailers and/or semitrailers. Other less common licenses include wholesale GDN, franchised dealer license, manufacturer license, and distributor license. For more information about the different types of Texas dealer licenses visit our Texas Dealer License Types FAQ page.
How do I meet the dealer Secretary of State and Tax ID number requirements?
We will cover this process extensively in your Texas dealer pre-license course. If you are not comfortable with this process we also provide to a third party provider that will register your business with theTexas Secretary of State, and obtain your Tax ID for you at a minimal cost. This can be done in just a few moments. Either way we will make it as easy as possible.
What amount of dealer surety bond is required for a Texas dealer license?
A standard Texas dealer license requires a $50,000 dealer surety bond. We will assist you with your bond in the in person portion of your pre-license training course and provide bond quoting links in the online training courses as well.
How much does a Texas dealer surety bond cost?
The cost of your dealer surety bond is largely based on your credit score, and using our bond broker service can help you get the best possible rate by matching your application with a bond carrier that specializes in working with dealers in your credit range. Dealers with a credit score of 690 or higher may qualify for bonds around $500 per year, or just $50 per month for 10 months, while scores between 660–689 may qualify for rates around $750 per year, or $75 per month for 10 months. Even if your credit score is below 600, we work with bond carriers that specialize in helping dealers with bad credit and rates may start as low as $150 per month for 10 months. Our bond carriers offer monthly payment options on all bonds, making it easier to get the coverage you need without paying the entire premium upfront. By making your payments on time, you may also be able to strengthen your credit profile and potentially qualify for a lower bond premium when it’s time to renew your dealer license. We can submit your bond to our network of carriers and help you find the most competitive rate available for your credit situation.
Can I finance and make payments on my bond if I have less than perfect credit?
Yes, bond payments start as low as $50 per month with good credit, $150 per month with below average credit. If your credit score is below 500 we can help you find low monthly payment plans that may build your credit score leading to lower bond pricing when you renew your Texas dealer license. We will show you how in your state mandated Texas pre-license course. Learn more about the course here.
I have bad credit, shouldn't I just avoid getting a Texas dealer license because of the high price of the bond?
No. We strongly encourage you to obtain your bond no matter your credit score and make monthly payments. Your profits with a Texas dealer license should be much more than your monthly bond payments, regardless of your credit score. Bond payments are typically only a fraction of your monthly dealer income. Based on our experience, individuals with poor credit who obtain a dealer license often see a significant improvement in their credit score within a year. This is typically driven by the substantial increase in income from operating their dealership, along with the monthly payments made on their dealer bond.
What is webDEALER and eLICENSING?
webDEALER is the Texas Deparment of Motor Vehicles web application that Texas dealers use when they sell a vehicle. It is a very simple program that is covered extensively in the dealer course. eLICENSINGis the TxDMV app that you must use when applying or your dealer license GDN. Both webDEALER and eLICENSING are covered in the course.
Can you tell me more about the course instructor?
Your dealer course is conducted by Automobile Dealer Training Association Lead Instructor Delus Johnson. Instructor Johnson is a former dealership principle, a 20 year veteran fire department captain, and was elected to House of Representatives from 2011 to 2019. During his time in the House his colleagues elected him to the Leadership position of House Whip. He has held the position of Lead Instructor of the Automobile Dealer Training Association since 2009. Instructor Johnson has conducted over 1,200 in person dealer training classes and trained over 20,000 dealers online. He conducts the TxDMV Approved Texas Dealer Pre-License Course online. Instructor Johnson will lead you step by step through your entire Texas dealer startup process.
How do I enroll in the Texas Dealer Pre License Education Course?
You can enroll in the Texas Dealer Pre License or Dealer Continuing Education course on our Enroll Now page
We are here to help you obtain your Texas Dealer License!
