Even before Governor Abbott announced his Executive Order (EO) on April 17th and more recently his Report to Open Texas (ROT) on April 27th, TIADA received a flood of questions from dealers attempting to understand what is required and what it suggested when it comes to operating your dealership. In this week's blog we will attempt to answer some of the more common questions. 

 

• Are masks and gloves required for employees?

• Can customers take a vehicle on a test drive?

• Can employees go on a test drive with customers?

• Can customers come inside the showroom or building?

• How many people can be in the building?

• Am I required to have hand sanitizer available for employees and customers?

• Can I repossess a vehicle if I am a lienholder and the customer has defaulted?

 

Trying to address these questions is not for the faint of heart. Any one of the searches can turn into a demanding mental scavenger hunt laced with legalese and bureaucratese. And just to add some complexity to it all, the target or answer continues to change. 

 

So, with no law degree, but a lot of heart and caffeine, we will dive into these issues.

 

The first thing to understand when asking these questions is that in many instances the EO points to the Governor's ROT which then points to the Center for Disease Control and Prevention (CDC) for guidance. 

 

The second thing dealers must know is that the EO supersedes any local orders as it relates to COVID-19. 

 

And last, it is important to realize there is a difference between essential and non-essential business and workers. “Sales of vehicles” are deemed essential according to the CISA's Guidance on Essential Critical Infrastructure. 

 

Once you clearly understand these specifics it will help as we move forward.

 

 

They are not required but recommended per the ROT and CDC. See page 21 of the ROT for a checklist for all Texas employers.  Revised checklists can be found on the Office of the Texas Governor website. 

 

 

There is no requirement that prohibits a customer from taking a test drive. Page 23 of the ROT suggests retailers monitor which items customers touch and make sure they are cleaned or disinfected when the customer leaves the establishment. Revised checklists can be found on the Office of the Texas Governor website.

 

 

There is nothing that says an employee cannot go on a test drive. However, the ROT and CDC both suggest keeping at least 6 feet between two people who are not from the same household to reduce the risk of spreading the virus.

 

 

Yes. Again, the ROT and CDC both suggest you practice social distancing and monitor which items customers touch and make sure they are cleaned or disinfected when the customer leaves the establishment.

 

 

There is no limit to the number of people that can be in a building. However, the ROT and CDC both suggest keeping at least 6 feet between two people who are not from the same household to reduce the risk of spreading the virus.

 

 

The minimum recommended health protocol for all retailers choosing to operate in Texas is to make hand sanitizer, disinfecting wipes, soap and water, or similar disinfectant readily available to employees, contractors, and customers.

 

 

There is no state or federal law that prohibits a lienholder from acting on a retail installment contract. However, TIADA encourages seller-financed dealers to make every effort to work with customers during this time. If you adjust or modify your practices, make sure you 1) document those adjustments in your written policies and 2) are consistent in applying your policies.