A car sale goes beyond negotiating a price and signing documents. It is the responsibility of dealers to adhere to licensing laws, advertising laws, titling laws, registration laws, and transaction laws that relate to the sale of vehicles. Having knowledge of Texas dealership laws will benefit both the consumer and the dealership.

Motor vehicle dealers who are licensed by the Texas Department of Motor Vehicles operate under regulations that have been established through state laws and rules. An independent dealer would normally need to have a General Distributing Number license in order to purchase, sell, or trade any used vehicles within the scope of his license.

A document trail is crucial during any car transaction. While purchasing a car from a dealership, buyers are supposed to get all the needed title and registration paperwork. It is up to the dealerships to ensure that they submit the appropriate title application on behalf of the buyers.

Potential buyers of used vehicles are advised to check the details available before making their purchases. When dealing with passenger cars and pickup trucks, the dealership is expected to provide the buyers with a Buyer's Guide that shows whether the vehicle being sold is either for sale as-is or under warranty. Other actions that could be taken by the buyer include checking the vehicle identification number, obtaining a title history report, conducting an inspection of the vehicle, and examining the sales contract.

Advertisement practices are yet another area that is governed by Texas dealership law. The Motor Vehicle Department in Texas encourages dealers to ensure that their advertisements conform to any advertisement requirements and do not feature anything that can be considered a false or misleading representation.

Title processing requires certain deadlines that buyers and dealers need to know about. There are time frames for processing the title and registration that are required by law, where a different deadline would be set if dealer financing is used. Buyers who delay getting their title and registration can contact the state authorities concerned.

Record keeping could also assume significance in case there are any queries about a transaction made in the past. The dealers could have a record of the sales agreement, the identification of the vehicle, the mileage of the vehicle, and various other documents related to the transaction.

People who are researching Texas dealership law could do well to look up the latest state requirements instead of going by advice that may not be valid anymore. Consumers who have issues regarding title delays, advertisements, vehicle disclosures, or the behavior of the dealers could approach the concerned authorities of the state.

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