No Driver's License? Can a Customer Still 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?

Texas law requires dealers to make a copy of a customer's current, government-issued photo ID and keep the copy in the deal jacket. The photo ID must contain a unique identification number and an expiration date. The following ID types are acceptable:
     (i) Driver's license or state identification certificate issued by a state or territory of the United States;
     (ii) United States or foreign passport;
     (iii) United States military identification card;
     (iv) North Atlantic Treaty Organization identification or identification issued under a Status of Forces Agreement; or
     (v) United States Department of Homeland Security, United States Citizenship and Immigration Services, or United States Department of State identification document. 

Other key points:
  • An ID is considered current as long as it has not expired by more than 12 months;
  • If a vehicle is to be titled in more than one name, then only one ID is required; and
  • These rules apply only to initial title and registration, not renewal registration. 
Keep these rules handy as the summer sales season ramps up. An ounce of prevention is worth a pound of cure when it comes to regulatory compliance.

Taking these rules and applying them to our member's situation, TIADA advised the member that, as long as they obtained (and photocopied, and kept the copy in the customer's deal jacket) a legally acceptable ID at the time of the sale, they should have a strong defense against the lawsuit. We referred the member to an attorney in their area.

Remember, the fastest way to get your compliance questions answered is to complete our Compliance Consultation Service online form. Got an OCCC exam, TxDMV investigation, thorny repossession or complicated bankruptcy situation? We've seen it all before. 


By: Jack Gronner
On: 06/07/2017 14:45:41
Think 2x before making a copy of a military ID. §701. Official badges, identification cards, other insignia Whoever manufactures, sells, or possesses any badge, identification card, or other insignia, of the design prescribed by the head of any department or agency of the United States for use by any officer or employee thereof, or any colorable imitation thereof, or photographs, prints, or in any other manner makes or executes any engraving, photograph, print, or impression in the likeness of any such badge, identification card, or other insignia, or any colorable imitation thereof, except as authorized under regulations made pursuant to law, shall be fined under this title or imprisoned not more than six months, or both.
By: Chauffeur London
On: 10/27/2018 02:55:40
These days buying a car without a license is like buying a car illegally. You should buy a car after getting license. This way you can easily purchase the car and drive it without worries.

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