Archive August 2021
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Policies for COVID-19 at Texas Dealerships
The COVID-19 pandemic continues to leave its impact on the day-to-day operations of small businesses across Texas. As the independent automobile industry has made headlines for increasing prices and falling inventories, many dealers remain unclear about what they should do should a staff member contract the virus. This comes at a difficult time for businesses, especially since many are struggling to find and keep qualified workers on the payroll.
New Surety Bond Posting Required
Last month TIADA reported that a new posting would be required at every dealership. House Bill 3533 was passed by the legislature during the 87th Legislative Session, and on June 14, 2021, Governor Abbott signed the bill into law. The association has now received additional guidance from the Texas Department of Motor Vehicles (TxDMV), which outlined the specifics of the posting associated with the new surety bond requirements. The law went into effect on September 1, 2021.
Official Notification on Dealer Surety Bond IncreaseLast month TIADA reported the surety bond was set to increase for dealers across Texas. House Bill 3533 was passed by the legislature during the 87th Legislative Session, and on June 14, 2021, Governor Abbott signed the bill into law. The association has now received additional guidance from the Texas Department of Motor Vehicles (TxDMV), which outlined the specifics of the increases and rules associated with the new surety bond requirements. The law goes into effect on September 1, 2021.
Have You Accidently Given Your Customer the Right to Pay You Late or Not the Full Amount?
There are numerous rights and privileges granted in a contract between a dealer and customer, but the real essence of the contract is the right of the purchaser to possess the vehicle and the right of the dealer to receive payment in the form and manner stated in the contract. Yet, under certain circumstances, a court may view the dealer as having waived the right to payment in the form and manner stated in the contract.
Don’t Shoot Yourself in the Foot by Ignoring Trigger TermsAccording to the Truth in Lending Act and other federal and state laws, advertisements for consumer credit must include certain disclosures about the terms and conditions of credit. These laws specifically require the disclosures to be "clear and conspicuous" so that reasonable consumers can read (or hear) and understand the information. Not all advertisements by dealers are for consumer credit, and this requirement of disclosure only occurs when certain “trigger terms” are used.
An Event to Remember: The 2021 TIADA Conference & ExpoThe 2021 TIADA Conference and Expo was a remarkable success. Over 300 dealers attended the event at the Kalahari Resort in Round Rock from July 25-27 this year. We were honored to host Governor Greg Abbott, who presented remarks about the economic recovery in the state and plans to continue in these efforts moving forward. From the first day's Welcome Reception to the Awards Banquet of the final evening, the tone of the event suggested dealers were relieved and excited to mark this conference as a sign of things returning to normal.
Rules and Exceptions for Titling a Vehicle
TIADA is often asked how long a dealer has to title a vehicle after it is sold. TIADA’s recommendation is to title all vehicles within 30 days because of federal bankruptcy law. State law allows longer than 30 days in some cases, such as 45 days if a vehicle is seller-financed; however, federal law governs bankruptcy, and if a lien is not recorded within 30 days, your collateral is at risk should a customer file bankruptcy.