TxDMV - Dealers

Take Note

Remember to ask Buyers for their photo ID when selling a vehicle. For more information on valid IDs and how to capture them, visit the Photo Identification Requirements page.

The 2013 Motor Vehicle Division Annual Report is now available

2013 Motor Vehicle Division Annual Report

Licensing

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TxDMV issues and renews the various types of licenses necessary for different facets of the sale and distribution of motor vehicles in Texas. The rules for licenses, vehicle advertising, hearings, and the Lemon Law are set by the TxDMV Board and are located in the Statutes and Rules section.

Check the Status
of Your Application

Dealer License Application Process

License Types

Converter

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 other than a motor home, ambulance or fire-fighting vehicle.

Franchise

Necessary for new vehicle sales
Operate under agreements with manufacturers or distributors

Independent (GDN)

Basic dealer license
Allows to buy, sell or exchange the type of used vehicle for which the GDN is issued

In-Transit

Allows drive-a-way operator to transport and deliver a vehicle in Texas from the manufacturer or another point of origin
Drive-a-way operators may apply for, receive, and attach metal in-transit license plates to the vehicles they transport.

Leasing

The lease facilitator license is required to operate as a leasing agent or leasing company.
The lessor license is required, under the terms of a lease agreement in excess of 180 days, to give another person the right to possess and use a motor vehicle that is titled in the name of the lessor.
Franchise dealers do not have to apply for a separate leasing license to be able to lease the vehicles they are licensed to sell.

Manufacturer

Manufactures or assembles new motor vehicles.

Distributor

Distributes or sells new motor vehicles to a franchised dealer, or
Enters into franchise agreements with franchised dealers on behalf of the manufacturer

Representative

Is or acts as an agent or employee for a manufacturer, distributor or converter, and
Performs any duty in Texas relating to promoting the distribution or sale of new motor vehicles, or
Contacts dealers in this state on behalf of a manufacturer, distributor, or converter.

Salvage Dealer

Sell more than five salvage or nonrepairable motor vehicles at casual sale in a calendar year; or
Casually repairs, rebuilds, or reconstructs three or more salvage motor vehicles in the same calendar year.

Dealer Services

MP910221009 TxDMV Motor Vehicle Division and Enforcement Division are pleased to offer services to our existing dealers/licensees and those in the application process. We are here to serve you.

Dealer Training Seminars

Rules Training

New Dealer Startup Information Mailer

License Application
Status Check

Motor Vehicle Inquiry

Exhibitions and Shows

960x595 Motor vehicle events (shows and exhibitions) are a component of the motor vehicle and trailer distribution industry where marketing of motor vehicle and trailer products take place.

Whether the event is a single participant event or a multiple participant event, licensees must obtain permission from the Motor Vehicle Division (MVD) to participate. Applications must be received by MVD at least 30 days prior to the opening day of the event. No fee is required.

Events are governed by the:

Texas Occupations Code §2301.358,
Texas Transportation Code Chapter 503.003,
Texas Administrative Code, Title 43, Chapter 215.

Motor Vehicle and Trailer Sales

In general, it is illegal for motor vehicle and trailer sales to take place at any location other than a licensed location. However, the law allows for the sales of specific types of motor vehicles and trailers in approved types of events.

Key Forms

The Participation Information has specific details on approved sales at motor vehicle events.
Exhibition and Show Participation Information
The Self-Authorization form may be used when participating in an event where motor vehicle sales are prohibited by all participants.
MVD_SA Self-Authorization Form: Non-Selling Shows & Static Exhibitions of New Motor Vehicles
The Licensee Participation form should be used when multiple types of vehicles and trailers are included in the event, or when the applicant does not know the other types of vehicles or licensees included in the event.
MVD-AS-RV2 Licensee Participant Application: Vehicles Shows Where Sales Are Allowed

For more information contact us at (512) 465-7327.

eTags

The eTag system is designed to make processing dealer tags fast and easy for dealerships throughout the state while making temporary tag information available in almost real-time to law enforcement.

The eTag system:

Works via a web-based application
Provides greater security by using unique numbers on every eTag
Replaces old style tags that are no longer legal

License Plates

Eligibility

The licensee categories eligible for metal dealer’s plates include: Franchise, GDN Motor Vehicle & Motorcycle, Manufacturer Motor Vehicle & Motorcycle Plates, Converter Motor Vehicle & Motorcycle, and In-Transit Metal Plates.