Titles and compliance
What is GDN?
Also called: general distinguishing number, dealer license
A GDN is the dealer license number a state issues to authorize buying and selling vehicles as a business. Texas uses the term; other states have their own.
Getting one generally means a surety bond, an established business location that meets premises rules, insurance, background checks, and in many states a pre-licensing course.
Texas requires a $50,000 surety bond for a general distinguishing number, with franchised dealers exempt. Bond amounts vary widely by state and change, so confirm the current figure with the agency.
Selling more than a handful of vehicles a year without one is curbstoning, and it is enforced.
Source: Tex. Transp. Code 503.033 (surety bond)
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Related terms
Curbstoning
Curbstoning is selling vehicles as an unlicensed dealer while posing as a private party, usually to dodge licensing, disclosure and tax obligations.
Dealer plate
A dealer plate is a plate issued to a licensed dealer for use on inventory and dealership business, rather than being registered to one vehicle.
General information for US dealers, not legal advice. Rules change and vary by state, so confirm specifics with your state agency or counsel.