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

• By: Amber Hackett Crosby
• On: 04/04/2018 16:01:06
• In: Texas Posts
• Comments: 0

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.