Texas MVD Bond Term

[lifeisgood]

It is my understanding that effective September 1, 2008 the state of Texas will require newly licensed Used Motor Vehicle Dealers to obtain a 2 year bond. I also have heard that effective October 1, 2008 the state of Texas is going to require RANDOM licensees to obtain a 2 year bond. Can you please verify?

[h2o]

Originally Posted by lifeisgood

It is my understanding that effective September 1, 2008 the state of Texas will require newly licensed Used Motor Vehicle Dealers to obtain a 2 year bond. I also have heard that effective October 1, 2008 the state of Texas is going to require RANDOM licensees to obtain a 2 year bond. Can you please verify?

Yes, it's true that Texas has passed legislation changing the licensing period to a 2-year term. And with the new 2-year license, a 2-year bond is now required.

This affects new licensees submitting an application on or after September 1, 2008.

As for current licensees, this goes into affect October 31, 2008. To ease the transition, they will only require half of the renewals per month to switch over to the 2-year term. The other half will remain with the 1-year term until next year. They will let you know on the renewal application which term you've been randomly selected for.

If you're unsure about the renewal of your license, it is best to check with the Texas Motor Vehicle Division.

Also, be sure to inform you bond agency if your renewal has changed to the 2-year term, so they may make the appropriate adjustments to your bond.

[lifeisgood]

My credit is bad so my premium is much higher than a standard market so there is no way I can afford a two year term. Can I just get the one year and renew at the end of the term????

[h2o]

Originally Posted by lifeisgood

My credit is bad so my premium is much higher than a standard market so there is no way I can afford a two year term. Can I just get the one year and renew at the end of the term????

Unfortunately, since there is a specific bond term of two years, you would have to pay the for the entire two-year term.