Texas Chronological Dealer Pre-License Checklist

  1. Complete Mandated $149 Video Course - The State of Texas requires most dealers to watch a TxDMV Approved Dealer Pre-License Video Course before applying for a license.
    My Texas Dealer Pre-License course has been vetted and is approved by the Texas Department of Motor Vehicles and meets your mandated dealer pre-license education requirement. Just register, watch all the videos, then download your Offical Dealer Pre-License Certificate of Completion.
  2. Create Texas Business Entity - You must establish your business entity before you apply for your license
    Before you apply for your license you must establish a business entity with the Texas Secretary of State, obtain an employer ID number, and a local business license. Click on the "Create Texas Business Entity" link to be connected to Tracy Newman our Business Entity Registration Specialist. Just select Texas from the dropdown box.
  3. Obtain Dealer Surety Bond - With good credit your bond should cost around $400 to $500. With bad credit you can make low monthly payments on your bond.
    If you click on the "Obtain Dealer Surety Bond" link you will be connected to my automated surety bond quoting system that will match your credit score with the bond company that specializes in issuing bonds to dealers with your credit score. I believe this will lead to the lowest bond quote on the first quote. Use the link to quote and bond in moments. (Please note Texas requires $50,000 Motor Vehicle Dealer-Obligee: Unknown Third Party)
  4. Get Licensed with OCCC - This is only required if you are starting a Buy Here Pay Here dealership and this step can be skipped if you are using third party lenders.
    If you will be operating as a Texas Buy Here Pay Here dealer you must obtain an Motor Vehicle Sales Finance License before financing vehicles. If you are using outside banks, lenders or third party companies that provide loans for your customers you can skip this step. If you have questions regarding a Texas Motor Vehicle Sales Finance License you can call 1-855-665-7123
  5. Ensure Location is Zoned for Dealer License - Location must be zoned for a dealer license. If located in a city, contact your city zoning office. If located in a county, contact the county courthouse.
    Use Google or an AI search tool using terms such as Texas Dealer Office, Dealer Lot For Rent or Sale. You can also check Craigslist, LoopNet, Crexi, CommercialSearch, and Rightmove. I will discuss location requirements extensively in your Texas Dealer Pre-License Course
  6. Apply for Dealer License at Texas eLICENSING - When you have completed all of your pre-license steps you will scan some documents then upload them at eLICENSING.
    I cover the entire dealer application process in your dealer pre-license course so you will submit your application correctly. This will assist you in getting your dealer license approved as soon as possible.
  7. Some Dealers must be Fingerprinted - After the Texas Department of Motor Vehicles reviews your initial application they will determine which owners may or may not need to be fingerprinted .
    After your application is received, the State will notify you via email if fingerprints are required and who on your application may need to be fingerprinted. The State wants to ensure they are not licensing anyone with past automotive crimes. Additional instructions will be provided in that email.
  8. Dealer License is Granted - The State should issue your Dealer License in 30 to 45 days. You can then enter dealer auctions, buy vehicles at wholesale, and sell them at retail .
    After your application approved, the State will notify you via email that you are licensed. Once you are licensed you can print your dealer license from the eLICENSING website. I cover the entire licensing process in depth in your Texas Dealer Pre-License Course

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    Thank You Very Much!

    Good luck with your new business,
    Delus Johnson

    Delus Johnson