Archive June 2019

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Wheels, Tires, and Belongings After Repo: Personal Property or Affixed to the Vehicle?

TIADA frequently receives calls inquiring about personal property found in a vehicle after a repossession. If a customer defaults on their retail installment contract, the dealer should take precautions when dealing with personal property found in the vehicle after a repossession. 

Test Drive Procedures and Best Practices

When a vehicle is sold, and all the paperwork completed, liability for accidents shifts solely to the buyer. In a test-drive situation, however, the dealer still has ownership and control of the vehicle and there is the potential for significant liability exposure for an accident caused by the test driver if their personal auto policy denies coverage or has lapsed.

Be Careful Selling Warranties and Service Plans

A Pennsylvania dealership sold and leased cars with a manufacturer’s warranty for 36 months or 36,000 miles. It also offered retail and lease customers a product it called a “warranty,” but this may have been an extended service plan. The product excluded manufacturer’s warranty claims. 
The Pennsylvania attorney general pounced on the dealership, alleging that the product “failed to provide any meaningful value relative to the consideration paid by the consumer.” The AG’s press release was blunter—the headline said the dealership sold “valueless warranties.” In colorful language, the AG is quoted as saying, “This dealership took its customers for a ride” and “bilked customers out of their hard-earned money.” Ouch

Refresher on Texas Advertising Rules

There is a lot of confusion in the market surrounding advertising vehicles in Texas.  It is important to remember that advertising rules are VERY DIFFERENT for new car dealers vs. independent car dealers.  We are constantly bombarded with advertising from new car dealers utilizing the terms “discount”, “rebate”, “sale price” etc.