Licensing

TxDMV issues and renews the various types of licenses necessary for different facets of the sale and distribution of motor vehicles in Texas. The rules for licenses, vehicle advertising, hearings, and the Lemon Law are set by the TxDMV Board and are located in the Statutes and Rules section.

Most-Used License Types

Franchise

  • Necessary for new vehicle sales
  • Operate under agreements with manufacturers or distributors

View More Information

 Franchise

Independent (GDN)

  • Basic dealer license
  • Allows to buy, sell or exchange the type of used vehicle for which the GDN is issued

View More Information

 Independent (GDN)

Salvage Dealer

  • Buy or sell more than five salvage or nonrepairable motor vehicles in a calendar year;
  • Repairs or rebuilds more than five salvage motor vehicles in the same calendar year.

View more Information

 Salvage Dealers

Other License Types

Converter

  • Assembles, installs, or affixes a body, cab or special equipment to a chassis, or
  • Substantially adds, subtracts from or modifies a previously assembled or manufactured motor vehicle other than a motor home, ambulance or fire-fighting vehicle.

View More Information

Distributor

 

  • Distributes or sells new motor vehicles to a franchised dealer, or
  • Enters into franchise agreements with franchised dealers on behalf of the manufacturer

View More Information

In-Transit

 

  • Allows drive-a-way operator to transport and deliver a vehicle in Texas from the manufacturer or another point of origin
  • Drive-a-way operators may apply for, receive, and attach metal in-transit license plates to the vehicles they transport.

View More Information

Leasing

 

  • The lease facilitator license may operate as a leasing agent or leasing company.
  • The lessor license is required, under the terms of a lease agreement, to give another person the right to possess and use a motor vehicle.
  • Franchised dealers do not have to apply for a separate lessor license to be able to lease the vehicles they are licensed to sell.

View More Information

Manufacturer

  • Manufactures or assembles new motor vehicles.

View More Information