Texas Auction License

Generally, obtaining a Texas auction license is what all auto dealers should think about first. As it is a kind of permission for legally buying and reselling cars through bidding. To get ready for that permit in TX state, follow the steps and requirements, which are analyzed in this article.

What do you need to get started?

If you have already decided to become a trader in TX, you had better get ready for passing through several steps. Those steps are enumerated below:

1. 6-hour training course: This is your first step. A future auctioneer must take a 6-hour online training course. Those traders who got licenses after September 1, 2020, have to take the class too.
2. Work building: This is your second step. For conducting your business you should have an enclosed building. The TX Department of Motor Vehicles requires that your office has a desk, with at least two chairs, a salesroom for storing the working files and records, and a computer with internet access. It still requires that a working telephone be. You are also to have an everlasting business sign with your auction name. Your business sign must be visible from the roadway.
3. Display lot: It must have room for five or more motor vehicles. You may also have it inside your working building.
4. Surety bond: this is a kind of guarantee to deal with the customers legally, and not break the law. The TMVD requires that you must obtain a surety bond of 2 years in the amount of $50.000. Here you do not need to settle the whole amount, you are just to pay a percentage of it. It depends on your credit score. You may pay about $400-$500.

Types of Texas auction licenses

Before applying, you need to determine your preferred type. The latter are:

• Motorcycle
• Motor vehicle
• Travel trailer
• Semi-trailer
• Wholesale auction
• Mobility vehicle
• Franchise

Complete the application

Once you have chosen your desired type, you can get ready for completing the request. You should send it and attachments by fax (at 512-465-4190) or mail to the Texas DMV.

After receiving your application, the state will process it. Whenever they check everything and find no false, you may get your permission within 2-3 weeks.

Required fees

Alongside your application, you should also attach the fees. Besides the surety bond, you are also to pay the following fees:

• License fee- $350
• Number fee- $700
• Each dealer license plate- $90

Note: You can also pay these fees by credit card.

The renewal

If you are not an experienced dealer, taking a 3-hour online training course for renewing is mandatory. But if you have experience of more than 2 years, you can renew your permit without this course. Thus, the training course is not difficult at all. You just need to watch videos for 3 hours on YouTube. At the end of the video, the official Texas trader permit renewing a certificate of completion will pop up on your screen. Then you should download it and submit it with your trader certificate renewal.

You will be informed about your renewal 75-90 days before your license’s expiration. If you do not manage to process your update in time, you will have to pay a late renewal fee in the amount of 50% of your application fee every 30 days.

Note: If you do not manage to submit your renewing application within 90 days, your existing certificate is to be revoked, and you are to start your licensure process as a newly started car trader.

Below you can find contact information for getting more details about the renewing process:

• Tel.- 800-369-2467
• Email- [email protected]

To conclude, every person, who is going to set up a business as an auctioneer, that is buy, sell or resell cars through bidding, must think of obtaining a trader certificate first. It allows a car dealer to work legally. Also, you can make comparisons with other states like North Carolina.