How to Get a New Dealership License in Texas: A Complete Guide for First-Time Dealers

Thinking of starting your own car dealership in Texas? Whether you plan to sell a few used vehicles or open a full-scale auto lot, obtaining a GDN (General Distinguishing Number)—commonly known as a Texas dealer license—is the first legal step.

At Swift Auto Title Services, we help aspiring auto dealers in Houston and surrounding counties get licensed quickly and correctly.

What Is a GDN or Texas Dealer License?

A GDN is issued by the Texas Department of Motor Vehicles (TxDMV) and allows you to legally buy, sell, or exchange vehicles in the state. There are different license types depending on what you plan to sell: used cars, new cars, motorcycles, trailers, or wholesale vehicles.

What You Need to Get Started:

Here are the key requirements to apply for a new dealer license in Texas:

  • A permanent business location with a display area (zoning-approved)

  • A business sign visible from the street

  • Proof of insurance and surety bond (typically $50,000 for used car dealers)

  • A sales tax permit from the Texas Comptroller

  • Completed GDN application through the eLICENSING portal

  • Payment of the required licensing fee

Most new dealers apply for a Used Motor Vehicle GDN, which is valid for 2 years.

How Swift Auto Title Services Helps

The application process can be overwhelming—but we simplify it for you. At Swift Auto Title Services, we:

  • Guide you through every licensing requirement

  • Help gather and review your documentation

  • Submit your dealer license application

  • Assist with inventory setup and future title processing

We also offer services like dealer inventory management and temp tags, so your business stays compliant from day one.

Ready to Launch Your Dealership?

Since 2018, Swift Auto Title Services has helped Houston-area entrepreneurs take their first steps toward successful auto sales. If you’re looking for a reliable partner to handle your dealer licensing and title work, we’re here to help.

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