Each state has its own regulations for obtaining and renewing auto dealer licenses. If you operate dealerships in Texas, you need to follow the Texas Department of Motor Vehicles rules.  Renewing your license can seem like a hassle, but don’t delay. Use this guide to learn how to renew your dealer license in Texas so you can continue to run your business without issue.

Why Do I Need to Renew My Dealer License?

Any dealership that already holds a Texas dealer license must regularly renew it to continue business operations in the state. Texas requires car dealerships to renew their licenses every two years.¹ Salvage dealers are the only exception. They must renew annually. 

Renewing your license allows you to legally continue buying and selling vehicles for business purposes. You need an up-to-date license to engage in licensed dealer activities. If you operate your dealership without renewing your license, you could face fines and legal action. 

What Are the Steps to Renewing My Dealer License?

The renewal process is similar to the original license application. Make sure you have the required documentation available, as you will need it during the application process. 

Required Documentation

As part of your Texas dealer license renewal, you may need to provide the following documents.² 

• Sales and Service Agreements
• Assumed Name Certificates issued by the Secretary of State
• Information regarding criminal matters

Corporations, LPs, LLPs, and LLCs will need to have the dealership’s formation documents on file with the Texas Secretary of State.

License Renewal Procedures

These are the steps to renewing your license:

• Login to the Texas eLICENSING system and select “Renew a License.”
• Select your organization from the dropdown menu on the Organizations page.
• Select the license you want to renew on the Licenses page.
• If necessary, update the details on the Contact Information page. The Texas DMV will use this information to get in touch about your renewal application, so you need to make sure it’s accurate and up to date. 
• Make any necessary changes to the information on the License Information page.
• Select the total number of vehicles you sold over the last calendar year.
• Choose the plates you want to cancel or renew. If you want to order more metal dealer plates, enter Yes and add the requested quantity. If not, select no. 
• Verify the ownership information and update the Criminal History page if necessary. 
• Answer the yes or no questions about military service and compliance with licensing requirements.
• Add the necessary documents by choosing the files from your computer. 

If there are any problems with your application, the online system will prompt you to revisit those sections and make corrections. 

Finalizing Your License Renewal Application

On the Summary page, review all the information in your application. If everything looks correct, click “Save and Next.” You can electronically sign the application as long as you have a valid Texas driver’s license. If not, you will need to download and print the file, sign it, then scan and upload the signed copy to the online system.

Click Proceed to Payment to pay your renewal fees. You can pay the required fees by credit card or ACH/eCheck. Enter your payment details and click Submit Payment. Wait for a popup saying your Payment Status is Payment Successful. After completing this process, you’ll get confirmation that you have successfully submitted your application. 

Does Texas Require Licensing Courses for Renewals?

All new dealer license applications have to complete a licensing course, and so do renewal applicants who have been licensed for less than 10 years as of September 1, 2019.⁴

Your chosen course must be provided through a motor vehicle trade association in Texas or a Texas institution of higher education. The course also needs to be at least three hours long for renewals. 

Find approved courses through Texas Dealer Education. 

If applicable, you’ll have to upload your course completion certificate when you renew your dealer license in Texas. 

Stock Your Dealership with ACV Auctions

Renewing your dealership license may be tedious, but it’s necessary to protect your business. Luckily, finding great vehicles to add to your inventory doesn’t have to be a struggle. With ACV Auctions, you can source excellent vehicles nationwide and buy with confidence, thanks to the best condition report on the market. Sign up today to start bidding.  

This site is provided for informational purposes only and should not be construed as legal advice. ACV is not liable for reliance on the information provided herein. We do not endorse, nor are we responsible for the privacy practices or the content of the sites linked in this blog.

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Sources

1. Dealer Tips and Services. Texas Department of Motor Vehicles. Retrieved October 31, 2024, from https://www.txdmv.gov/dealers/dealer-services 
2. Texas Department of Motor Vehicles Dealer Licensing Overview. Texas Department of Motor Vehicles. Retrieved October 31, 2024, from https://www.txdmv.gov/sites/default/files/body-files/Dealer_Licensing_Process_Overview.pdf 
3. eLICENSING User Guide for Franchise Dealer Licenses. Texas Department of Motor Vehicles. Retrieved October 31, 2024, from https://www.txdmv.gov/sites/default/files/body-files/eLICENSING_UserGuide_Franchise_Dealer_Licenses.pdf 
4. Dealer Education Requirements for Licensing. Texas Department of Motor Vehicles. Retrieved October 31, 2024, from https://www.txdmv.gov/dealers/dealer-education