Independent (GDN) License

Independent Motor Vehicle – May buy, sell, or exchange any type of used cars and trucks. May use dealer’s temporary tags, buyer’s temporary tags, and metal dealer license plates on motor vehicles only. Must provide a bond.

Independent Motorcycle – May buy, sell, or exchange any type of used motorcycles, motor scooters or ATVs. May use dealer’s temporary tags, buyer’s temporary tags, and metal dealer license plates on motorcycles, motor scooters or ATVs only. Must provide a bond.

Travel Trailer – May buy, sell, or exchange used travel trailers. May use dealer’s temporary tags, buyer’s temporary tags, and metal dealer license plates on travel trailers only. Exempt from the security requirement.

Trailer/Semitrailer - May buy, sell, or exchange new or used utility trailers and/or semitrailers. May use dealer’s temporary tags, buyer’s temporary tags, and metal dealer license plates on trailers/semitrailers only. Exempt from the security requirement.

Wholesale – May sell or exchange vehicles with other licensed dealers only.

• Are NOT required to have a five-vehicle display area.
• May NOT sell vehicles to retail purchasers.
• Wholesale vehicle dealers may buy, sell, or exchange used vehicles, including motor vehicles, motorcycles, and travel trailers. May buy, sell, or exchange new or used trailers and/or semitrailers. May use temporary tags and metal dealer license plates. Must provide a bond.

Wholesale Motor Vehicle Auction – May offer vehicles for sale by bid only to licensed dealers at a bona fide auction at a permanent location. Must provide a bond.

• May not make facilities or GDN available to any other person for the purpose of the sale or auction of vehicles.
• May be issued only one wholesale motor vehicle auction GDN for a particular location.
• May be issued a regular motor vehicle GDN for a location that has been issued a wholesale motor vehicle auction GDN.

Additional information about this type of license can be found in these pamphlets:

• Know the Law #1: Temporary Tags & Metal Dealer Plates [pdf, 2 pages, 476kb]
• Know the Law #2: Required Records to be Kept by Dealers [pdf, 2 pages, 43kb]
• Know the Law #3: Used Car Buyers Guides [pdf, 2 pages, 43kb]

Independent (GDN) Forms | Other License Forms

Category	Form Number	Title	Format
			PDF	Word
General		Payment and Mailing Instructions
General	LF604	Application to Amend Business Entity
General	LF701	Plate Application Form
General	LF901	Affidavit and Application for Duplicate License
Independent	LP021	New Application Information
Independent	LP011	License Purveyors Information
Independent	LF001	New Application Form
Independent	LF601	Ownership and Management Form
Independent	LF021	Amendment Application Form

The Texas Legislature writes the statutes and the Transportation Commission writes rules that govern franchise dealers, which are contained on the following pages:

• Occupations Code Chapter 2301
• 43 TAC Chapter 8