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Distributor License

distributor
  • Distributor: a person, other than a manufacturer, who distributes or sells new motor vehicles to a franchised dealer.
  • Manufacturers and distributors of new vehicles sold in Texas must be licensed by TxDMV, regardless of where the manufacturer or distributor is located.
  • Neither manufacturers nor distributors are allowed to sell new motor vehicles directly to Texas consumers, including municipalities. Only franchised dealers that are licensed for the line-make and type code of the vehicle are allowed to sell new motor vehicles to Texas consumers. If a new motor vehicle is sold through a bid process, the franchised dealer for the specific line-make and type code must be listed on the bid as the seller.
  • Prohibitions:
    • Distributors cannot: operate or control a dealer or dealership; or act in the capacity of a dealer, directly or indirectly.
    • See TEXAS OCCUPATIONS CODE §2301.476 for details and exceptions.

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