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Archive April 2022

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Vehicle Storage Lien Law Review

TIADA frequently receives calls regarding the laws regulating vehicle storage facilities (VSF) after a customer’s vehicle is towed and impounded.  Applicable provisions of the Texas Occupations Code and Texas Administrative Code are provided below as a reference to independent dealers.
In general, a vehicle storage facility or VSF must be licensed by the Texas Department of Licensing and Regulation.  A few tips if you receive invoices or notices (or no notices) that are out of the ordinary.

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.

Dealers Working with Law Enforcement to Prevent Vehicle Fraud

The Houston Police Department’s Auto Theft Division, Vehicle Fraud Unit has spent years building a coordinated effort by law enforcement and dealers to catch criminals in the act of committing fraud. The Unit has made over 110 arrests for frauds-in-progress since April 2018. It is a major initiative led by Sergeant Darren Schlosser, a crime prevention strategy that has saved over $5.2 million in fraud since they began tracking such cases.

Bad History Report, Clean Title...Now What?

Sometimes, a history report shows a vehicle was deemed a total loss by an insurance company, yet it will still have a clear title. At first glance, the title seems contradictory to the vehicle history report; however, that is not the case as insurance companies have different definitions than Texas. This blog will first explain why this can occur and what steps a dealer should take to avoid liability related to the insurance’s determination that the vehicle was a total loss.