Vehicle/Trailer Dealer Licensing

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

Additional information about this type of license can be found in the pamphlet, Know the Law #4: Converters & Conversions.

Converter License Forms

Franchise licenses are necessary for new vehicle sales. Only franchised dealers may sell new motor vehicles, including travel trailers. Franchised dealers operate under agreements with manufacturers or distributors to sell new vehicles.

Franchise License Forms

Independent Motor Vehicle - May buy, sell, or exchange any type of used cars and trucks. May use dealer's temporary tags, buyer's temporary tags, and metal dealer license plates on motor vehicles only. Must provide a bond.

Independent Motorcycle - May buy, sell, or exchange any type of used motorcycles, motor scooters or ATVs. May use dealer's temporary tags, buyer's temporary tags, and metal dealer license plates on motorcycles, motor scooters or ATVs only. Must provide a bond.

Travel Trailer - May buy, sell, or exchange used travel trailers. May use dealer's temporary tags, buyer's temporary tags, and metal dealer license plates on travel trailers only. Exempt from the security requirement.

Trailer/Semitrailer - May buy, sell, or exchange new or used utility trailers and/or semitrailers. May use dealer's temporary tags, buyer's temporary tags, and metal dealer license plates on trailers/semitrailers only. Exempt from the security requirement.

Wholesale - May sell or exchange vehicles with other licensed dealers only.

• Are NOT required to have a five-vehicle display area.
• May NOT sell vehicles to retail purchasers.
• Wholesale vehicle dealers may buy, sell, or exchange used vehicles, including motor vehicles, motorcycles, and travel trailers. May buy, sell, or exchange new or used trailers and/or semitrailers. May use temporary tags and metal dealer license plates. Must provide a bond.

Wholesale Motor Vehicle Auction - May offer vehicles for sale by bid only to licensed dealers at a bona fide auction at a permanent location. Must provide a bond.

• May not make facilities or GDN available to any other person for the purpose of the sale or auction of vehicles.
• May be issued only one wholesale motor vehicle auction GDN for a particular location.
• May be issued a regular motor vehicle GDN for a location that has been issued a wholesale motor vehicle auction GDN.

Additional information about this type of license can be found in these pamphlets:

• Know the Law #1: Temporary Tags & Metal Dealer Plates
• Know the Law #2: Required Records to be Kept by Dealers
• Know the Law #3: Used Car Buyers Guides

Independent (GDN) Forms

An in-transit license is required for a drive-a-way operator who transports and delivers a vehicle in this state from the manufacturer or another point of origin to a location in this state using the vehicle's own power or using the full-mount method, the saddle-mount method, the tow-bar method, or a combination of those methods.

Drive-a-way operators may apply for, receive, and attach metal in-transit license plates to the vehicles they transport. The drive-a-way in-transit license and the metal in-transit plates expire on March 31 regardless of when the application was submitted; the full fee must be paid regardless of when the application was submitted.

In-transit License Forms

Lease Facilitator

The lease facilitator license allows a person to hold himself or herself out to be a leasing agent or leasing company. This person solicits someone to enter a contract of agreement to lease a vehicle. A lease facilitator by definition, is not the lessor or owner of a vehicle, but rather someone who puts the lessor, selling dealer and lessee (buyer) together.

Lessor License

The lessor license is required of a person who, under the terms of a lease agreement in excess of 180 days, gives another person the right to possess and use a motor vehicle that is titled in the name of the lessor.

A lessor licensee does not need to have a lease facilitator license to facilitate leases for themselves. The lessor license includes the ability to facilitate its own leases. However, if the lessor facilitates leases between lessees and other lessors, they would need a lease facilitator license in addition to their lessor license.

Leasing License Forms

A manufacturer is a person who manufactures or assembles new motor vehicles.

A distributor means a person, other than a manufacturer, who distributes or sells new motor vehicles to a franchised dealer.

Manufacturer/Distributor Forms

A representative is a person who:

• 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.

A person may act as a representative for more than one manufacturer, distributor or converter, but a separate license must be obtained for each company represented.

Representative License Forms

As a result of House Bill 2651, passed by the Texas Legislature in 2007, all new license applicants will be issued a two-year license beginning September 1, 2008.

Transition Period

The first year will be a transition period to stagger license expiration.

•  Half of all monthly renewals will receive a two-year license and the other half will receive a one-year license.
•  One-year license terms have been randomly assigned to half of our licensees and two-year license terms to the other half.
•  After the transition period, all licensees will have a two-year license term.

One-year license terms have been randomly assigned to half of our licensees and a two-year license to the other half.

Motor Vehicle Surety Bond

No changes have been made to the Motor Vehicle Dealer Surety Bond as a result of the change in the length of license terms.

• The bond form remains the same
• Dealers must provide a $25,000 bond for the term of both one-year and two -year licenses.
• The bond term will extend for the same length of time as the dealer's license term.
• All new license applications received on or after September 1, 2008, will receive a two-year license term upon approval.
• All new applications for an independent motor vehicle dealer license received on or after September 1, 2008, that are required to include a bond, should have a bond with a two-year term.

Existing Licensees

To determine whether an existing licensee will be issued a one-year or a two-year license, select the Excel spreadsheet for the appropriate license category in the table below.

• The spreadsheets are sorted by business name, but can be downloaded and sorted by any of the columns.
• If a franchised dealer has a supplemental used vehicle dealership in a different city from their franchised dealership location, the license term information for that supplemental used vehicle dealership will be found on the Independent spreadsheet.