Approval is the start, not the finish line
Most new dealers focus entirely on getting their General Distinguishing Number (GDN) from TxDMV. That makes sense — GDN wait times are currently the highest they have ever been, so avoiding deficiencies matters. But once your license goes active, a new set of obligations begins, and many of them come with deadlines that start right away.
Texas expects a licensed dealer to actually deal
A GDN is not meant to sit in a drawer. If a dealer sells or assigns fewer than five vehicles in a calendar year, TxDMV can revoke the license. Planning how your first year of sales will look is part of protecting the license you worked to get.
Vehicle Inventory Tax starts within 30 days
For a retail motor vehicle dealership subject to Vehicle Inventory Tax (VIT), you must set up VIT accounts with your county tax office and appraisal district within 30 days of your license going active. After that, monthly VIT statements and an annual declaration are required — even in months with zero sales.
webDEALER and title paperwork deadlines
Since July 1, 2025, licensed dealers must use webDEALER for the title and registration transactions covered by the requirement. Retail-sale paperwork must be submitted within 20 business days for cash or third-party-financed sales, or 45 calendar days for seller-financed sales. These are the dealer's filing deadlines — not a promise that the state issues the title within that period.
Your posted business hours still count
- Retail dealers: open at least 4 days a week, at least 4 consecutive hours each day.
- Wholesale dealers: open at least 2 weekdays, at least 2 consecutive hours each day.
Plan for life after approval
Ricky has run a real Texas dealership and knows which post-licensing obligations catch new dealers off guard. In a free 15-minute consultation, we can talk through your plans and what to prepare for. Dealer License Pros is an independent consulting business — only TxDMV and other agencies approve licenses and enforce these rules, and our guidance is not legal or tax advice.
Sources
This guide is general business information, not legal advice. Texas requirements change. Always confirm current rules with TxDMV before you apply. Dealer License Pros is not affiliated with TxDMV.