What Types of ID Does a Customer Need to Buy a Car?

A member recently called the TIADA Compliance Consultation Service (CCS) for advice in dealing with a pending lawsuit. The member sold a car to a customer who did not present a valid driver's license at the time of purchase. The customer did present ID that the State of Texas deemed acceptable.
Fast forward a couple of days. The customer caused an accident in which a third party claims to have sustained both property damage and physical injuries. Law enforcement cited the customer for several violations, including driving without a license. The third party sued our TIADA member, saying that our member should not have sold a vehicle to a customer who did not provide a valid driver's license. What does the rule say?

Got Compliance Questions? We've Got Answers!

TIADA's Compliance Consultation Service (CCS) is a valuable resource that members may access. Through CCS, TIADA staff assist members on a wide variety of dealership issues, including state regulation compliance, navigating consumer complaints and attorney referrals. This post reviews a few questions that TIADA members have presented to CCS.  This sample provides a good range of the types of resolutions that ultimately help members get back to what they do best - selling cars.

Remember, you can submit your own questions using our ONLINE FORM. It's the fastest way to get answers to your compliance issues! 

Phone Calls Can Be Goldmines

By Gary Graves
CTO, InterActiveTel

If silence is golden, then conversation is platinum, and it pays to listen to what shoppers and customers tell you — even down to the specific words they use.

After all, a conversation is a dialogue and not a monologue. And today, thanks to the long-reach of the Internet and the proliferation of mobile phones, it has never been easier to stay in touch with your customers — whether they're still prospects looking to make their first purchase or long-standing customers calling about a support issue. 

A Refresher on IRS Cash Reporting Requirements

Any dealer who accepts payments in cash should be aware of Form 8300. The IRS says that you must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if your business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions.  The form must be filed electronically or by mail within 15 days of the receipt of the cash. 

60-Day Rule Subject of Increasing Comptroller Audits

By Michael Dunagan
TIADA General Counsel

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.

How Facebook Is Helping Dealers Reach Customers

By Gabrielle Garrison
Partner Manager

Is moving metal and getting cars into the service bay important to you? What if I told you there was a place where you can reach 1.86 billion people to help with these objectives? Would you believe me if I told you that this place is also where people spend 1 out of every 5 minutes a day on their mobile device? Facebook and Instagram are not just social graphs anymore; they are a destination where your customers and perspectives customers turn to discover, be inspired and share the things that matter most to them, including with the businesses they value.

Do You Need to Keep Physical Titles on Premises?

Dealer Question: Am I required to keep the physical title certificate for every car on my lot on my premises?

7 Changes I Would Make to Your Dealership If I Bought It TODAY

By Zack Klempf
CEO & Founder
Selly Automotive

I started out in automotive retail at the age of 19 and fell in love with the industry. That experience led me to start a software company focused on the used car market and has given me the opportunity to travel across North America and visit various used car stores from the south side of Las Vegas to Honolulu, Hawaii. Moreover, my company has gathered valuable insights from quantitative and qualitative observations of the used car dealer segment.
Recently, I was speaking to a group of used car dealers about embracing technology and one very outspoken dealer broke-down at the end of my presentation. This dealer was from the baby boomer generation and had worked in automotive retail all of his adult life. Needless to say, he had seen a lot of change in the industry, most noticeably over the past five years. He exclaimed that he works seven days a week, can't compete with new car dealership buyers, his margins are shrinking, millennials he has hired in the past can't sell cars and no single man could know every software application needed to run a dealership in today's market. 

Vehicle Safety Inspections: Should Texas Eliminate Them?

State Representative Ron Simmons (R - Carrollton) and State Senator Don Huffines (R - Dallas) have both introduced bills, HB 3995 and SB 1588 respectively, that would eliminate the requirement for an annual state vehicle inspection.

We asked you whether you supported these bills in a poll in TIADA's weekly email. According to the results, nearly 70% of respondents favored getting rid of the inspections. 

Dealer Shares Three Keys To Auction-Sourcing Success

By Majd G. Saboura
Director of Wholesale Business Development

I had a fascinating discussion last week with an independent dealer in Florida.

His used vehicle sales are up about 40 percent compared to a year ago, with a commiserate rise in his store's profits.