Texas Dealer License Training

Federal Laws for Texas Dealers, Federal Trade Commission Buyers Guide, Office of Foreign Asset Control, National Motor Vehicle Title Information System, Cash Reporting with the IRS

Texas Dealers Federal Trade Commission Buyers Guide Law

Up until a few years ago our automobile dealership industry was wracked with fraud and deception. Some time ago many unethical persons operated dealerships with the sole intent of defrauding the customer. Things have changed dramatically since then. Now both the Federal Government and the Texas Department of Motor Vehicles require dealerships to operate with the highest ethical standards possible.

After countless fraudulent dealer transactions had been reported to the Federal Government the Federal Trade Commission, which protects consumers against fraudulent businesses, created a new law called the Federal Trade Commission Buyers Guide law.

The Federal Trade Commission revised the FTC Buyers guide and has required the new, revised edition to be displayed since December or 2018. If you were ever a dealer in the past and you have old FTC Buyer Guides, dispose of them immediately and make sure you are using the new, revised version. Make sure your buyers guides match the ones used in this course.

The Federal Trade Commission Buyers Guide law requires every dealership in the United States to disclose whether or not they offer a warranty on any vehicle they sell. This information must be disclosed before the test drive and can be done with a free Federal Trade Commission Buyers guide.

Buyer Guides are only required to be displayed on cars and light trucks with GVWR 8500 pounds or less.

Dealers in Texas must be sure to enter whether you are offering a full warranty, in which you would pay one hundred percent of all parts and labor costs, or a limited warranty, in which you would clearly designate a percentage of the parts and labor the dealer will pay. Enter a duration of the coverage such as 30 days or 1000 miles, whichever occurs first to ensure your warranty coverage will end on a specific date.

If offering any warranty be sure to enter a duration of the warranty otherwise you may be giving your customer a warranty that never ends and you could be liable for repair costs several years after the vehicle has been sold.