FoxHow to Get a Texas Wholesale Dealer License (GDN)
A wholesale GDN is the cheapest way into the Texas car business: no retail lot, no display area, no pre-licensing course. Here’s what the license allows, what TxDMV asks for, and what to set up once it’s approved.
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To deal wholesale in Texas you need a Wholesale Dealer General Distinguishing Number (GDN) from TxDMV, applied for online through eLICENSING. You must buy a $50,000 surety bond. Wholesale dealers may sell only to other licensed dealers, never to the public, and don’t need a five-vehicle display area or the dealer education course.
What a Texas Wholesale GDN Lets You Do
Straight from the TxDMV Independent GDN page.
Buy, sell and exchange used vehicles
Wholesale dealers may buy, sell or exchange used vehicles, including motor vehicles, motorcycles and travel trailers, plus new or used trailers and semitrailers. (TxDMV Independent GDN page)
Sell only to licensed dealers
A wholesale GDN holder may sell only to another GDN holder or to a dealer licensed in another state or country. (Transp. Code §503.036) Retail sales to the public are not allowed.
No five-vehicle display area
Unlike a retail independent GDN, wholesale dealers are NOT required to have a five-vehicle display area. (TxDMV Independent GDN page)
Temporary tags and dealer plates
Wholesale dealers may use temporary tags and metal dealer license plates. (TxDMV Independent GDN page)
What TxDMV Requires
Gather these before you start the application.
- $50,000 surety bond: TxDMV may not issue or renew a dealer GDN without proof of a $50,000 surety bond from an approved surety. (Transp. Code §503.033) Wholesale-only dealers are on TxDMV’s list of license types that need the bond, and a separate bond is needed for each GDN category. (TxDMV eLICENSING user guide)
- Business details: your Texas Secretary of State filing number (for entities), EIN or owner SSN, any previous GDN numbers, and the bond number, issuer and dates. (TxDMV eLICENSING user guide)
- No dealer education course: the pre-licensing training applies to independent motor vehicle GDN applicants, and TxDMV says it does not apply to wholesale dealers. (TxDMV dealer education page)
- Online application: applications go through TxDMV’s designated licensing system (eLICENSING) with all required documents and fees. (43 TAC §215.133)
How to Apply for a Wholesale GDN
The order most new wholesalers follow.
Form your business
Register your entity with the Texas Secretary of State (if you’re not operating as a sole proprietor) and get an EIN.
Buy the $50,000 bond
Get a motor vehicle dealer surety bond from a company licensed to sell them in Texas. You’ll upload a copy with the application. (TxDMV eLICENSING user guide)
Apply in eLICENSING
Create an account, choose the Wholesale license type, and complete the application with documents and fees. (TxDMV Independent GDN page)
Track your status
TxDMV publishes application status codes (Form MVD-LF630) so you can follow review. (TxDMV Independent GDN page)
Your First 90 Days as a Wholesale Dealer
The license is step one. Profit depends on knowing your numbers per car.
- Set up webDEALER: since July 1, 2025, licensed Texas dealers must use webDEALER for title and registration. See our webDEALER guide.
- Auction access and floor plan: most wholesalers buy at auction and many finance inventory on a floor plan. Learn how to calculate floor plan interest.
- Paperwork: know the dealer-to-dealer sale checklist and VTR-41-A.
- Records: Texas dealers must keep purchase and sale records for 48 months. See record-keeping requirements.
Start Your Wholesale Business With the Right System
Per-dealership plans: Starter $39/mo, Growth $79/mo, Command $199/mo (see pricing). FoxDMS works anywhere in the US in any web browser, including on your phone (no app to install), with Texas forms included. Questions? Email support@foxdms.com.
Texas Wholesale Dealer License: FAQ
Can a Texas wholesale dealer sell to the public?
No. Wholesale dealers may sell only to other GDN holders or dealers licensed in another state or country. (Transp. Code §503.036)
How much is the bond for a Texas wholesale dealer license?
$50,000, from a surety licensed in Texas. (Transp. Code §503.033; TxDMV eLICENSING user guide)
Do I need a display lot for a wholesale license?
No five-vehicle display area is required. (TxDMV Independent GDN page)
Do wholesale dealers need the dealer education course?
No. It applies to independent motor vehicle GDN applicants, not wholesale dealers. (TxDMV dealer education page)
Disclaimer: This guide is general information, not legal or financial advice. Rules change; confirm with your county tax assessor-collector or TxDMV. Last reviewed October 11, 2026.
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The Texas checklist for wholesale sales.
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What wholesale dealing involves.
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