FTC's Privacy Rule and Auto Dealers: FAQs (2022)

The Federal Trade Commission (FTC) has developed these additional FAQs to help auto dealers comply with the Gramm-Leach-Bliley Act and the FTC’s Privacy Rule. The following questions and answers show how the Privacy Rule applies to specific situations that auto dealers may face. Before reading this, you may want to familiarize yourself with the FTC’s small business guide, How To Comply with the Privacy of Consumer Financial Information Rule of the Gramm-Leach-Bliley Act, and the Frequently Asked Questions for the Privacy Regulation. Other business guidance is available on the FTC’s Gramm-Leach-Bliley Act page.

Please note that this information does not address possible legal obligations you may have under the FTC Safeguards Rule, the Fair Credit Reporting Act, or other federal and state laws.

(Video) Understanding New FTC Cybersecurity Requirements Impacting Auto Dealers - CARA Webinar Recording

Activities and Entities Covered by the Privacy Rule

1. Does the Privacy Rule apply to me?

The Privacy Rule applies to car dealers who:

  • Extend credit to someone (for example, through a retail installment contract) in connection with the purchase of a car for personal, family, or household use;
  • Arrange for someone to finance or lease a car for personal, family, or household use; or
  • Provide financial advice or counseling to individuals.

If you engage in these activities, any personal information that you collect to provide these services is covered by the Privacy Rule. Examples of personal information include someone’s name, address, phone number, or other information that could be used to identify them individually. The Privacy Rule applies if you collect personal information about someone in connection with the potential financing or leasing of a car, even if that person does not fill out a formal application. The Privacy Rule does not apply to you if a person buys a car with cash or arranges financing on their own through another lender.

2. Do I need to give a privacy notice to everyone who walks into my showroom?

You don’t need to give a privacy notice to someone who simply expresses an interest in buying a car from you or asks general questions about financing or leasing. However, if a person gives you personal information in connection with a potential transaction, even without completing a formal application — for example, if they give you personal information to get a quote on a financial package — you may have other obligations. For more information, see Question 3.

3. When do I have to give someone a privacy notice?

The answer depends on whether the person is a “consumer” or a “customer” — words that have their own meanings under the Privacy Rule. A person becomes a “consumer” when (s)he gives you personal information in the context of possibly financing or leasing a car from you. You only need to give them a privacy notice (and an opt-out notice) if you intend to disclose their personal information to nonaffiliated third parties. However, there are exceptions to this requirement which are set forth in sections 313.14 and 313.15 of the Privacy Rule. These exceptions include disclosures to process a transaction requested by the consumer, disclosures made with the consumer’s consent, and disclosures for law enforcement purposes. If someone enters into a contract with you to buy a car and you extend them credit or arrange for someone else to extend them credit, they become your “customer.” In the leasing context, once someone enters into a lease agreement with you, they become your “customer” as well. Whether leasing or arranging credit, you must give them a privacy notice no later than at the time of signing of the retail installment contract or lease agreement — even if you do not disclose their personal information to others. For more information about your general responsibilities to “consumers” and “customers,” see Section II of How To Comply with the Privacy of Consumer Financial Information Rule of the Gramm-Leach-Bliley Act; Section B of the Frequently Asked Questions for the Privacy Regulation; and 16 C.F.R. §§ 313.4(a) and 313.10(a).

(Video) Federal Trade Commission Privacy Rule

4. I lease cars to individuals. How does the Privacy Rule apply to me?

If you lease cars on a non-operating basis where the initial term of the lease is at least 90 days, the Privacy Rule applies to you. “Non-operating” means that the lease agreement does not include maintenance or repair services, unlike, for example, car rental services. As for when you have to give a person a privacy notice, the same rules outlined in Question 3 apply to you.

5. Is all the information that I obtain in connection with financing or leasing a car covered by the Privacy Rule?

In general, the Privacy Rule covers personal information you obtain in the course of financing or leasing a car for personal, family, or household use. However, it doesn’t cover: l personal information obtained in the course of a sale that you don’t help to finance (e.g., where the individual secured his own financing or paid in cash); l sales figures that don’t contain personal information; and l general retail sales data that isn’t derived from information about how individuals financed or leased their cars. To illustrate how this works: A list of all the retail customers who bought cars from you falls outside the Rule — assuming that the list doesn’t reveal how they paid for the car and isn’t derived from any information about how their purchases were financed. However, if the list specifies which customers financed or leased their cars, it would be covered by the Rule. A list of people who applied to you to finance or lease a car would also be covered.

Disclosures to Service Providers

6. As a courtesy to my customers, I sometimes hire an outside marketing company to send holiday greeting cards or advertisements about “specials” in my service department. To do this, I have to give the marketing company my customers’ names and addresses. I’ve provided my customers with a privacy notice, but because I don’t usually disclose their information except as required by law, I haven’t given them an opt-out notice. Do I now need to give an opt-out notice to my customers before disclosing this information to the marketing company?

If you want to send flyers to all of your customers, you don’t need to give them an opt-out notice as long as you don’t distinguish between those who financed or leased and those who didn’t. A list of all your customers — without reference to whether they financed their car or paid for it outright — falls outside the Privacy Rule, as long as the list wasn’t derived from information about how they obtained their car. For more information on privacy notices and opt-out notices, see Section II of How To Comply with the Privacy of Consumer Financial Information Rule of the Gramm-Leach-Bliley Act.

7. A follow up to Question 6, but instead of sending the mailing out to all my customers, I want to send it out only to those customers for whom I arranged financing. Do I need to give an opt-out notice before I give the outside marketing company my customer list?

In this situation, the Privacy Rule applies because you derived the list from the provision of a financial service. However, the “service provider” exception to the Privacy Rule lets you give the marketing company your finance customer list without providing an opt-out notice if you meet both the following requirements: l You gave your customers a privacy notice during your initial transaction that includes a statement that you share nonpublic personal information in order to market your own products or services; and l You enter into a contract with the marketing company that prohibits it from disclosing or using the information except to carry out the marketing you have requested. If you don’t meet both these requirements, you must give people an opt-out notice and a reasonable opportunity to opt out before disclosing their personal information to the marketing company. If you send the mailing out yourself, without disclosing any information to third parties, you don’t have to meet the requirements stated above. For more information on opt-out notices, see Section F of the Frequently Asked Questions for the Privacy Regulation and 16 C.F.R. § 313.10. For more information on the “service provider” exception, see Section G of the Frequently Asked Questions for the Privacy Regulation and 16 C.F.R. § 313.13. Remember that even if you do not have to give an opt-out notice, you may still be required to give annual privacy notices that describe your privacy policies and practices.

(Video) How Changes To The FTC Safeguards Rule Will Impact Auto Dealerships

Financing

8. When someone agrees to finance the purchase of a car with my dealership, they sign a retail installment contract. I immediately assign the contract to a third party lender. Do I have to give a privacy notice to the purchaser?

Yes. When a dealer enters into a retail installment contract with a person to finance the purchase of a car, the dealer is the creditor on the contract and is contractually bound by its terms. Because the dealer has extended credit, it has established its own customer relationship with the person when they sign the contract. Therefore, under the Privacy Rule, you must give a privacy notice no later than when the borrower signs the contract, even if you intend to assign the contract to a third party lender. See 16 C.F.R. § 313.4(a)(1) for more information. Once the contract is assigned to a third party lender, you no longer have a customer relationship with the individual borrower and you are no longer responsible for providing annual privacy notices to this person. However, you are still bound by the terms of the initial privacy policy you gave the person, and you must continue to honor any opt-out requests you have received.

9. When the retail installment contract is assigned, does the third party lender have to give a privacy notice? If so, when?

When you assign the retail installment contract, including the servicing rights, to a third party lender, that lender now has a customer relationship with the individual borrower. Since the customer relationship was not established at the customer’s election, the third party lender must deliver its privacy notice to the customer within a reasonable time after it buys the contract. Alternatively, if the third party lender is known when the customer signs the retail installment contract, that lender may arrange to have the dealer give the lender’s privacy notice to the customer when the dealer gives its own notice. In addition, the third party lender must give the customer an annual notice for as long as the customer relationship continues. See 16 C.F.R. § 313.5(a) for more information.

10. I extend credit to people who buy cars from me through retail installment contracts. I keep the contracts and do not assign them to others. What are my obligations?

Where you do not assign the contract, the people remain your customers and you need to give them an initial privacy notice, an opt-out notice (if applicable), and an annual notice for as long as the customer relationship lasts. See 16 C.F.R. §§ 313.4(a), 313.5(a)(1), and 313.10(a)(1) for more information.

11. I receive personal information from someone who applies for financing for the purchase of a car. After processing the application, I decide not to accept the application for credit. I have no plans to share this person’s information, other than as required by law. Do I have to give this individual a privacy notice?

No. A person whose application for credit has been denied is considered a “consumer” — not a “customer” — and therefore you do not have to give them a privacy notice as long as you do not share their personal information. See Question 3 and 16 C.F.R. §§ 313.3(e)(2) for more information about privacy notices and “consumers.”

(Video) Full - FTC Safeguards Rule changes for automotive dealerships

Disclosures Under Exceptions to the Notice and Opt-Out Requirements

12. When I sell a car, I am required by law to report certain information about the sale to the manufacturer for recall purposes, whether I arrange financing for the purchase or not. Can I continue to report this information about the sales I finance to the manufacturer under the Privacy Rule? Do I have to give an opt-out notice to the buyer?

In general, you must give an opt-out notice before you share information with nonaffiliated third parties. A manufacturer is not considered your “affiliate” unless it controls your management or your policies, or you are under common control with the manufacturer. However, there are situations when you may share personal information with nonaffiliated third parties without providing consumers an opportunity to opt out of the disclosure. These limited circumstances are listed in sections 313.14 and 313.15 of the Privacy Rule. In this situation, you are reporting on behalf of your dealership to the nonaffiliated manufacturer under an exception that permits disclosure to comply with federal, state, or local laws. You would not need to give an opt-out notice to the buyer. However, because the manufacturer received the information from you under one of the exceptions to the opt-out requirement, it may not use the information for unrelated purposes like marketing. See 16 C.F.R. § 313.11(a). You may also disclose general retail sales data to the manufacturer about all your customers — even if you are not required to do so by law — as long as the data does not reveal information about how the customers financed their purchases. See Question 5 above.

13. Occasionally, a third party lender whom I contact denies a consumer’s application for financing. Can that lender give me the reasons for the denial so I can let the consumer know?

Yes. When you send an individual’s application for financing to a third party lender, the lender can give you information about why the loan was denied so you can give the information to the applicant. The Equal Credit Opportunity Act (ECOA) permits a creditor (here, the third party lender) to disclose the reasons for taking an adverse action through a third party (here, the car dealer) when the third party submits an application to a creditor on behalf of the consumer. The car dealer must comply with the notice requirements of section 202.9 of Regulation B under ECOA, including providing the consumer a statement of the action taken and the reasons for the denial. In this situation, the third party lender is disclosing information to you to comply with federal law, as permitted by the Privacy Rule. Because you receive personal information from the third party lender under an exception to the Privacy Rule, your ability to use and disclose the information is limited. The limits are discussed in Section G of the Frequently Asked Questions for the Privacy Regulation.

14. When I assign or sell a lease or retail installment contract to a third party lender, do I have to give an opt-out notice to my customers?

No. The disclosure of personal information to a third party lender is allowed under the exception to the Privacy Rule concerning secondary market sales, including sales of servicing rights or similar transactions related to a consumer’s transaction.

15. Car manufacturers generally require dealers to complete a retail delivery report (RDR) about every purchase or lease transaction. Under the Privacy Rule, am I allowed to disclose this information to the manufacturer?

General retail sales information about everyone who buy cars from a car dealer can be provided on the RDR because this information falls outside the scope of the Privacy Rule. Information like name, address, vehicle make and model, and vehicle identification number may be disclosed because these categories are not related to whether or how the car was financed. However, any personal information you obtain in the course of financing or leasing is covered by the Privacy Rule. This includes the fact that a car has been financed or leased or any other information derived from the financing or leasing. For example, if the RDR not only has customers’ names, addresses, and vehicle information, but also notes which customers financed or leased their cars, the Privacy Rule would apply. Therefore, unless the disclosure of this information falls within one of the exceptions under sections 313.14 or 313.15, you cannot give the information to the nonaffiliated manufacturer unless you first give the customer an opt-out notice and a reasonable opportunity to opt out. Where the personal information is disclosed under an exception, the manufacturer may use the information only for that purpose and can’t use the information to market to those customers.

(Video) FTC Hot Topics with Commissioner Christine Wilson: Regulatory Reform, Privacy, Antitrust, & Beyond

16. When I lease cars to individuals, there is often a manufacturer’s rebate offered in connection with the lease. For my customers to qualify for the rebate, I need to disclose personal information from the lease transaction to the manufacturer. If the customer wants the manufacturer’s rebate, do I have to give an opt-out notice to her before sending the information to the manufacturer?

No. In this case, you are processing a transaction at the individual’s request, and can disclose personal information to nonaffiliated third parties like the manufacturer to process the rebate. However, you may disclose to the manufacturer only information necessary to process the rebate. Further, the manufacturer may use this information only to process the rebate and may not use it for other purposes, such as marketing

For More Information

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Your Opportunity to Comment

The National Small Business Ombudsman and 10 Regional Fairness Boards collect comments from small businesses about federal compliance and enforcement activities. Each year, the Ombudsman evaluates the conduct of these activities and rates each agency's responsiveness to small businesses. Small businesses can comment to the Ombudsman without fear of reprisal. To comment, call toll-free 1-888-REGFAIR (1-888-734-3247) or go to www.sba.gov/ombudsman.

FAQs

Can a dealer sell a car without an inspection sticker in Texas? ›

A Texas dealer must issue a Buyer Tag for every retail sale and ensure the vehicle has a current Texas inspection if the vehicle is going to be operated on Texas roadways.

What is ComplyAuto? ›

ComplyAuto is a Software-as-a-Service RegTech company that currently serves over 2,000 dealerships and some of the largest groups across the country. Founded by dealers and for dealers, ComplyAuto understands that unique dealer problems require unique dealer solutions.

Can a dealer sell a car without inspection in Missouri? ›

Vehicles bought from a Dealer

Dealers can sell a vehicle using an emissions inspection compliance certificate, whether it has a 'Pass' or a 'Fail' and got a 'Waiver' 120 days prior to the date of sale.

Is there a lemon law for used cars in Missouri? ›

The Missouri New Vehicles Warranty Law, commonly called the “Lemon Law,” protects buyers of new vehicles by enforcing the manufacturer's express warranty. The Lemon Law does not apply to used cars.

Who holds car dealerships accountable? ›

Car Complaints
  • Deceptive car ads or dealers — File a complaint with your state consumer protection agency and the Federal Trade Commission.
  • Auto repair shops — File a complaint with your state consumer protection agency.
12 Jul 2022

Can a car dealer back out of a signed contract in Texas? ›

In short, yes, a dealer can back out of a contract but only during specific time frames and scenarios. Also, their opportunity to do so is brief, and you're protected by laws should they attempt to take advantage of you. When you finance through a dealer, they look for a bank or lender to buy your car loan.

Who owns ComplyAuto? ›

Chris Cleveland - Co-Founder & CEO - ComplyAuto | LinkedIn.

How long does a car dealership have to give you the title in Missouri? ›

Title Penalty

Missouri law requires owners to apply for title within 30 days, or 60 days when purchased from qualifying dealers executing an Agreement for Delayed Delivery of Certificate of Ownership (Form 5830), based on the purchase date of the vehicle.

Is Missouri doing away with vehicle inspections? ›

A new law taking effect on August 28 will change the state's vehicle inspection rules. On Wednesday, Gov. Mike Parson signed Senate Bill 89 into law, a wide-ranging bill including a provision that will require inspections for vehicles more than 10 years old or with more than 150,000 miles.

How many days do you have to return a used car in Missouri? ›

The seller must return any payment or trade-in goods within 10 days after notification of cancellation, and must mark the contract “canceled.” The buyer may keep any item the seller does not request returned within 20 days of the contract's cancellation.

How many cars can you buy and sell in a year in Missouri? ›

Note that individuals are allowed to sell up to 6 vehicles in a year, as long as those vehicles are titled in their name and used primarily for personal, family, and household use. Not sure if you need a dealer license? Check out this post on selling cars without a license.

Can you return a car to a dealership in Missouri? ›

Fortunately, you can return a car in Missouri. The state's lemon law stipulates that all car buyers must take action within one year from the date of purchase to return a car. Failure to do so could give the dealership the legal right to refuse the return.

What is the Used Car Rule? ›

The Used Car Rule, formally known as the Used Motor Vehicle Trade Regulation Rule, has been in effect since 1985. It requires car dealers to display a window sticker, known as a Buyers Guide, on the used cars they offer for sale.

Do car dealers share customer information? ›

Your information is shared so that others can benefit and make a profit from you, whether or not you purchase a car from them. Once they share that information, it puts you at risk for receiving unwanted solicitations and makes your private information vulnerable to theft and fraud.

What is the dealership legally obligated to tell customers about these loans? ›

Under the Truth in Lending Act, auto dealers must disclose: The creditor's identity. The amount financed (along with either a written itemization or a statement that the consumer has the right to one) The finance charge.

What are my rights after purchasing a used vehicle? ›

Problems with cars bought from dealers

(For a used car, “satisfactory quality” takes into account the car's age and mileage.) You have a right to reject something faulty and you're entitled to a full refund within 30 days of purchase in most cases. After 30 days, you lose the short-term right to reject the goods.

Can a car dealer cancel a sale? ›

If you buy a car that is financed through the dealership, the dealer CAN cancel the contract, but only if it notifies you within 10 days of the date on the purchase contract. This type of financing is sometimes called a “spot delivery.” It is based on the language of the purchase contract.

Is there anyway the dealership can get out of the deal? ›

But Quebec gives you two days to back out of a sales contract with a new or used dealer – but only if you took out an auto loan through the dealer as part of the sale. If you bought with cash or through a personal loan, you're out of luck.

Can I back out of a car deal after signing? ›

The short answer is: You can still refuse the deal. To unwind the transaction, you must bring the car back to the dealer, who should then return your trade-in and down payment.

Can I sue a dealership for not giving me a title Missouri? ›

It is fraudulent as a matter of law if a car dealership in Missouri fails to provide you with a title at the time of sale. A no-title vehicle sale is void. And it is fraudulent for a finance company to collect payment on such a void sale. The lender even “stands in the shoes” of the dealer, subject to the same claims.

Can a car dealer sell a car without a title in Missouri? ›

According to the Missouri Attorney General's office, it's illegal to sell a car without handing over the title on the day of the sale. In March, Missouri Attorney General Chris Koster sued seven car dealerships for selling cars without titles.

Do I need a bill of sale if I have the title in Missouri? ›

Missouri law states that all sellers must submit either a Notice of Sale (form 5049) or Bill of Sale (DOR-1957) to the state's Department of Revenue within 30 days from the date of sale. The Bill of Sale needs to include the following information and should be notarized: Year and Make of the Vehicle. Title number.

What year vehicle is exempt from inspection in Missouri? ›

EXEMPTIONS: Effective August 28, 2019, motor vehicles for the first ten years following the model year of manufacture and having less than 150,000 miles on the odometer are exempt from the safety inspection requirement.

Will a cracked windshield pass inspection in Mo? ›

Any cracks, chips or areas of discoloration that are located within an area four inches above the bottom of the windshield and within the swipe of the windshield wipers in the driver's view are not permitted.

How often do you have to get a safety inspection in Missouri? ›

How often do I need to get my car or truck inspected in Missouri? Your vehicle will need to be inspected once every two years by an authorized service provider. If your car or truck has a model year that is even, it will need to be inspected during even years.

Is there a 30 day lemon law in Missouri? ›

Home - FAQs - Is There a 30-Day Lemon Law in Missouri? No, it's a common misconception that consumers who purchase a vehicle have a “cooling-off” period during which they can return the vehicle. This is not the case. All vehicle sales in Missouri are final.

What is the lemon law Missouri? ›

The Missouri New Vehicles Warranty Law, commonly called the “Lemon Law,” protects buyers of new vehicles by enforcing the manufacturer's express warranty. The Lemon Law does not apply to used cars.

Can you cancel a contract in Missouri? ›

In addition to any other right under law to rescind a contract, an owner has the right to cancel a contract until midnight of the third business day after the day on which the owner signs a contract which complies with section 407.938. 2.

How many cars can I sell in Missouri without a dealer license? ›

Motor vehicle dealers must be licensed if they plan to start a Missouri automobile dealership. Those who qualify as an auto dealership sell eight or more vehicles in one year or more than five trailers, powersports vehicles, or boats.

Is there a limit on how many cars you can own? ›

If you live in the United States, you can own as many cars as you want. There is no limit. However, several other things can limit the number of cars that you can have, so keep reading while we discuss space, insurance, local laws, and more to help you make an informed decision.

How many personal vehicles can you sell? ›

There is no minimum number of cars an individual can sell before they are deemed to be a trader. A person will only be considered a trader if they buy cars mainly for the purpose of reselling them at a profit, regardless of the number of vehicles sold each year.

How long do you have to change your mind after buying a car? ›

Federal Cooling-Off Rule

The Federal Trade Commission's “cooling-off” rule — established in the 1970s — allows consumers 3 days to cancel a transaction. This rule often gets tossed around if a consumer wants to return a car just purchased.

Can I pull out of a car purchase? ›

The purchase of a vehicle by a customer on hire purchase from the dealership which itself arranges the finance on the spot is the classic situation, and this is a “prospective agreement” and does allow the customer to withdraw.

Can you return a financed car back to the dealer? ›

You can return it, but you'll probably have to pay back any remaining money you owe on the contract, so if you still have a year left, then the lender will expect a year's worth of fees up front.

What does the FTC require from dealerships selling used vehicles? ›

The FTC's (Federal Trade Commission) Used Car Rule requires California Dealers to post a Buyers Guide in every used car they offer for sale. You must post a Buyers Guide before you display a vehicle for sale or let a customer inspect it for the purpose of buying it, even if the car is not fully prepared for delivery.

What is theft protection when buying a car? ›

Theft Protection offers you a proven theft deterrent and recovery system along with a financial benefit if the Theft Protection system installed on your vehicle fails to prevent your vehicle from being stolen and the vehicle is declared a total loss.

How long do you have to reject a used car? ›

Broadly speaking there are three time periods for rejection: within the first 30 days of purchase; after 30 days but before six months; and after six months.

Does a car have to be inspected to sell it in Texas? ›

It's true that Texas does not require an inspection before you sell your used car, however the buyer might want to know if the car is capable of passing inspection. With this in mind it would be a good idea to prove that the car can pass a routine annual inspection.

Can I sue a dealership for not giving me a title in Texas? ›

You Can Sue the Dealer For Not Giving You the Title

Consumers can file a complaint with the MVA when the dealer will not provide the title.

Do dealerships register cars for you Texas? ›

A Texas dealer is responsible for processing title and registration on behalf of their customer within 30 days of the date of purchase or 45 days if seller-financed (the dealer provides the financing).

Can you sell a car with an expired registration Texas? ›

Vehicle registration is also needed to show proof of ownership at the time of sale. In addition to registration, a seller also needs the vehicle identification number (VIN), license plate number and a clear title. Titles are valid until you sell your car, so you don't need to worry about an expired title.

What fails a car inspection in Texas? ›

If your vehicle has the “check engine” light, “service engine soon” light, or any other malfunction indicator lights on, it will immediately fail inspection. Texas requires that all problems must be fixed within a 15-day period and to have the inspection performed again (as to not incur any additional fees).

How old does a car have to be to not need emissions in Texas? ›

Cars made in 1995 or earlier do not need emissions tests. They are grandfathered in to a state law that requires emissions testing for vehicles.

Do I need a bill of sale if I have the title in Texas? ›

A Texas bill of sale is required if you are selling your car. The importance of this document should not be overlooked, as the car sale cannot be legally completed until you properly file a Texas bill of sale. Before you sell your car, make sure you can handle this important step of the sales process.

How long does a car dealership have to give you the title in Texas? ›

Under Texas Law, you do not have 3 days to cancel the purchase like you may with some transactions the dealer is required to register and title the vehicle in your name within 30 days, regardless of if you owe money on the vehicle to the dealer or another financier.

What is the penalty for not transferring title within 30 days in Texas? ›

To avoid penalties, transfer title within 30 Calendar days from date of sale or entry into Texas. Sales tax penalties: After 30 Calendar days, an additional 5% of the sales tax is assessed, and increases to 10% if not transferred after an additional 30 calendar days.

Can a dealership sell a car without a title in Texas? ›

It is illegal to sell a car without a title in Texas.

Texan law requires an official title for all vehicle sales. This ensures that the seller actually owns the vehicle they are selling.

Can a bank revoke a loan on a car after I signed the contract? ›

If you got your loan through the bank directly, it's rare to have your loan revoked after you've purchased your car. Banks may be able to revoke your car loan if your contract had language that protects the bank's right to do so.

How long does it take to get license plates from dealer in Texas 2022? ›

As per the Texas DMV, the title and registration must be processed through a dealer. In roughly 30 days, the plates will be shipped to you. If you financed your automobile, this might be extended to 45 days. You can file a dealer complaint if you don't get it within this time.

Can I register a vehicle that is not in my name in Texas? ›

You may only register a vehicle on behalf of the titled owner with a Permission Letter and acceptable form(s) of ID for you and the owner. You are not eligible to register online on behalf of the titled owner.

Can you sell a vehicle without a title? ›

Yes, you can sell a car without a title if you have proof of ownership. Selling a car without proof of ownership is illegal in most states. That said, it's not uncommon to discover that you don't have your car's title in your possession.

Can I sell a car without the title in my name? ›

Selling a car that isn't registered in your name

There are very few reasons that you will be able to sell a car that isn't in your name, these include: If you are the executor of the estate. If you have financial power of attorney. With confirmation of intentions from the registered individual.

Can I sell my car without registration document? ›

It's actually entirely possible (and 100% legal) to sell a car and transfer ownership without a V5C document. Most people do not realise that the vehicle logbook is a record of the registered keeper, not proof of ownership.

Videos

1. Unsecurity Episode 186: FTC Safeguards Rule Updates- What You Need to Know
(FRSecure)
2. Federal Trade Commission Privacy Rule
(Dealer Training)
3. Texas FTC Buyers Guide Federal Laws
(Dealer Training)
4. Federal Trade Commissin Buyers Guide
(Dealer Training)
5. The Revised FTC Safeguards Rule - What It Means and Why It Is More Important Than You Might Think
(Thompson Coburn LLP)
6. Georgia Dealer Finance Laws for Buy Here Pay Here Dealerships
(Dealer Training)

Top Articles

You might also like

Latest Posts

Article information

Author: Chrissy Homenick

Last Updated: 11/21/2022

Views: 5333

Rating: 4.3 / 5 (54 voted)

Reviews: 85% of readers found this page helpful

Author information

Name: Chrissy Homenick

Birthday: 2001-10-22

Address: 611 Kuhn Oval, Feltonbury, NY 02783-3818

Phone: +96619177651654

Job: Mining Representative

Hobby: amateur radio, Sculling, Knife making, Gardening, Watching movies, Gunsmithing, Video gaming

Introduction: My name is Chrissy Homenick, I am a tender, funny, determined, tender, glorious, fancy, enthusiastic person who loves writing and wants to share my knowledge and understanding with you.