Can You Sell a Converted Vehicle without a Converter's License?

Recently a dealer contacted TIADA's Compliance Consultation Service regarding a vehicle he received as part of a trade-in. The vehicle was a pickup that had been converted into a box truck, and the dealer wanted to know if he could sell it on his lot with his independent dealer license. In our latest blog post, we answer that question and examine the regulations regarding these types of vehicles that independent dealers should know. 

Dealer Question: A customer traded in a pickup that was turned into a box truck. May I sell this on my lot with my independent dealer license?
Answer: Yes, as long as the vehicle is titled as a light truck.
The Texas Occupations Code, Chapter 2301 defines a conversion as a motor vehicle that has been substantially modified by a person other than the manufacturer or distributor of the chassis of the motor vehicle and that has not been the subject of a retail sale, unless the modification results in a motor home, ambulance or fire-fighting vehicle.  
Texas Department of Motor Vehicles' Motor Vehicle Dealer Manual, Chapter 3.3 states that a converter license is required for dealers who perform the jobs described in the Occupations Code. No converter license is required if a conversion is done after the first retail sale of the vehicle.
If a customer purchases a vehicle (cab and chassis) from a franchised dealer then later purchased and mounted a box, this is considered an “after-market” conversion. An independent dealer who acquired such a vehicle could resale it on their lot without needing a converter license as long as the vehicle is titled as a light truck. If there's a question as to how the vehicle is titled, run the VIN through a title check to verify.
Bottom Line: An auto dealer may buy, sell or exchange the type of used vehicle corresponding to the type of GDN they hold. If the vehicle is titled as a used passenger car, light truck, motorhome, neighborhood electric vehicle, all-terrain vehicle or recreational off-road vehicle, then a motor vehicle GDN license holder may sell it.


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