Archive May 2019

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Selling a Car to Unmarried Couples

It’s not uncommon to sell a car to unmarried couples who purchase together. If you do so, be aware that selling a car means entering into a series of contracts that may cause confusion in the future as the status of their relationship may change. It's important to understand and explain the vehicle ownership rights and responsibilities before you allow any customers to jointly purchase a car or make other irregular payment or registration arrangements. Here are some of the common legal considerations when discussing shared ownership of a car. 

TIADA Celebrates: Named-Driver Polices Reform

The passage of HB 259 ushers in a new era for named-driver insurance policies. “This is a huge victory for our members”, said TIADA Executive Director Jeff Martin.  “We formed a workgroup to focus on this issue in 2011 and have supported legislation authored by Rep. Thompson every session since”

Be Careful When Charging Dealer Prep Fees and Other Fees

Dealer prep fee, service fee, detailing fee, etc…regardless of the terminology, a common point of confusion for Texas dealers centers around this idea of “additional charges.” For the purposes of this discussion, we will take that to mean any charges that are not included in the cash price of the vehicle. Additionally, we will delineate between a cash sale and a retail installment transaction. So what is allowable?

San Antonio PD Issue Warrant & Reqquest Dealer Assistance

TIADA would like to make you aware of the following individual who is applying for vehicle loans with fictitious social security numbers in an attempt to get funded to purchase vehicles. 

Considerations When Working with Spanish Speaking Customers

Hispanic customers are one of the fastest growing demographics in Texas. Many of those customers rely on Spanish as their primary language. When dealing with Spanish speaking customers, dealers need to take appropriate steps to ensure compliance with state and federal laws.

Out of State Title Transfer

Out of state procedures differ slightly from the norm when a dealer sells a vehicle that will be leaving the state.  Handling titles, e-Tags, and taxes can be confusing, but dealers can benefit from learning to recognize the differences and train employees to handle these matters accordingly.

For retail out of state sales:
  1. Collect the MV tax or get the Comptroller’s exemption form 14-312 signed.
  2. Obtain the same ID you require for in state sales.
  3. Give the title paperwork to the buyer within 20 working days.
  4. For a retail sale, issue a buyer’s tag and collect the $5 e-tag fee.

Guide To Record Retention For Auto Dealers

You can rely on a reasonable record retention policy such as this one if you have thrown away records which are later requested of you.  However, in order to use the policy as a defense, you should exercise the policy and discard documents on a regular (at least yearly) basis.  Remember to shred any consumer or personal indentifying information.

Watch for Elaborate Over the Phone Debit Card Authorization Scam

A Central Texas Dealer was recently the victim of an elaborate scam that resulted in the theft of two vehicles worth over $30,000.

Texas DMV Announces Revised VTR 34

Make sure that you are using the (rev 0419 date) for your Application for a Certified Copy of Title(Form VTR-34) as it has been revised by TxDMV.