People usually ask about the license fee, but the fee is rarely the biggest cost of opening a dealership. Here are the categories to plan for. We don't list exact state fees here because TxDMV sets and updates them. Check TxDMV's current fee schedule before you budget.
State licensing fees
TxDMV charges an application or license fee for your GDN, plus fees for items like metal dealer license plates if you order them. Its eLICENSING guide lists current license and plate fees.
Pre-licensing education
For new independent motor vehicle dealers, TxDMV says the approved course may not cost more than $150 per person.
Surety bond
You'll pay a premium to a surety company for your bond. What you pay depends on the bond amount and the surety's assessment of you, often including credit.
Fingerprinting
Each person listed on the application completes fingerprinting, which comes with a vendor fee.
Business formation
If you form an LLC or corporation, the Texas Secretary of State charges filing fees.
The location: usually the biggest cost
Rent, deposits, office furniture and equipment, your sign, and any work needed to make a property compliant usually cost far more than the state fees. A lease must generally run at least as long as your license term, so it's a real commitment.
Insurance, inventory and operations
Beyond licensing, you'll need insurance, working capital for inventory, and tools to run the business.
Sources
- TxDMV — eLICENSING User Guide for Independent GDN Licenses
- TxDMV — Dealer Education Requirements for Licensing
- Texas Secretary of State — Business Filings
- Texas Transportation Code, Chapter 503
This guide is general business information, not legal advice. Texas requirements change. Always confirm current rules with TxDMV before you apply. Dealer License Pros is not affiliated with TxDMV.