Both are Texas GDNs. The difference comes down to who your customers are, and that drives what your location needs.
Retail (independent motor vehicle dealer)
- Sell used vehicles to the public
- Requires office, sign and space to display at least five vehicles
- Best for traditional used car lots
Wholesale
- Sell to other licensed dealers
- Requires office and sign; display space not required by statute
- Best for dealer-to-dealer and auction-focused businesses
How to decide
- Who will buy your vehicles: the public, or dealers?
- Do you want room to grow into retail sales?
- Can you budget for a retail-ready location now?
If you're unsure, choose based on where your revenue will come from in the first year, and talk it through before you sign a lease.
Sources
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.