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Archive July 2019

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About That Mistake on the Title: Can I Make an Alteration?

All vehicle transactions are not seamless and sometimes mistakes happen when titling or registering a vehicle.  Did you know you can often correct an error after the fact without having to unwind a deal?   Texas Administrative Code, §217.5 outlines the process regarding alterations: 

What to Do when Exported Vehicles Return

Most dealers know how to process sales of a vehicle that will be registered someplace other than Texas, whether that place is Mexico, New Mexico, or New Zealand. Fewer know what to do when that exported vehicle returns to Texas. Can the dealer simply place the car in its inventory and proceed with selling? Not so fast.

The 60 Day Rule. Be Careful With Deferred Sales Tax

One of the greatest legislative achievements of TIADA was the passage of deferred sales tax. It allows buy-here-pay-here dealers to pay sales tax from the income stream received from buyers (as opposed to fronting the entire sales tax amount at the time of transfer).  Additionally, it eliminates the payment of tax on any portion of the sales price not paid by the buyer. Be careful not to lose the benefits of deferred sales tax. Here is a summary of two of the issues regarding deferred sales tax.

Filing Claims Against a Surety Bond

All licensed dealers – including motor vehicles, motorcycles, wholesale only, wholesale motor vehicle auction and independent mobility motor vehicle licensees- in Texas are required to maintain a $25,000 surety bond. The bond is supposed to guarantee that the dealer will pay all valid bank drafts and checks drawn by her/him to purchase vehicles, as well as transfer valid titles for all vehicles that s/he plans to sell. If someone suffers a financial loss as a result of a dealer's failure to do certain things, then the full amount of the bond is available to offset that loss.

Seeing Double

Ever have identical vehicles on your lot?  Same make, model, and even color?  Better be careful with your paperwork!  Good news: A dealer sold two identical cars in two days.  The bad news?  The paperwork got mixed up and the vehicles' VINs were registered in the wrong customer names.  

Answering Repossession Questions: Public Sale v. Private Sale

Dealer Question:  I’m new to the Buy-Here-Pay-Here business and I’ve gotten conflicting information about handling repossessions.  I have been told by some that I have to send a certain notice prior to repossession and others tell me I don’t.  Also, I am confused about the so-called “10-day” repossession notice and the “20-day” notice and whether I should dispose of repossessed vehicles at a “public” or a “private” sale.  Can you clear up those questions for me? 

Changes in Texas Auto Insurance Coverage Laws for Loaner or Temporary Vehicles.

Does your dealership ever provide loaner vehicles for your customers?  Ever wonder which insurance covered the vehicle in the event of an accident? Was it your garage liability or the customer’s personal automobile policy?  Prior the passage of SB 1737 by Senator Menendez the coverage was unclear as to liability, primary, excess, or no coverage.  TIADA supported this legislation during the 86th Legislature to help auto dealers that provide loaner vehicles to their customers.