Texas Dealer Records

Texas Dealer Records

All records must be maintained and easily accessible to TxDMV personnel by anyone that holds a Texas motor vehicle dealer license. This is Texas Law!.

All records, including retail and wholesale transactions, must be kept a minimum of 48 months (4 years). All current records and records from the previous 13 months must be kept at the licensed dealership location. Records that are older than 13 months can be stored another location other than the dealership. You may not store the 13 previous months records at an off-site location, they must be stored at the dealership. Federal law requires some records, such as Federal Trade Commission Buyers Guide copies and odometer disclosure statement copies, to be kept for a period of five 5 years.

You will be starting a very extensive paper trail when you obtain your Texas used motor vehicle dealers license. The most important piece of office equipment you will need with your new business will be a copy machine or scanner. You will create and store copies of every document related to the purchase and sale of every vehicle. If you are thinking about throwing away a document that relates to the operation of your dealership, don’t through it away, make a copy of it!

Records may be kept in an electronic format or hard paper copy. If you are storing your records electronically, it is imperative that you have multiple backups. If all of your records are stored on only one computer and that computer’s hard drive fails, you would not have your records and you would not be in compliance with the law.

Records, like the names, addresses, dates, VINs, etc. may be kept in a database, and no paper copy is required if they are available for inspection and are capable of being printed out for inspection by the MVD representative at the dealership location during normal business hours.

Original vehicle titles in the possession of a dealer (not by a lien holder) should be kept in a secure location. If the original title is kept by the floor-planner, the dealer is required to keep a copy of the front and back of the title at the dealership.

Texas retail motor vehicle dealers are required to keep at minimum the following records, either via paper or electronically, for all vehicles, purchased, leased, and sold:

1. Retail Installment Agreement, Sales Contract, or Bill of Sale which should include the date of sale; vehicle description (i.e. year, make and model); vehicle identification number (VIN); name and address of person purchasing the vehicle; sale price; all other fees and charges that are the total cost of the vehicle including trade-in, pay-off of trade-in, extended warranty, insurance, etc.
2. A copy of the Application for Texas Title after filled out and signed by buyer and seller (Form 130-U). This form may be obtained from the Tax Collector's office or your local VTR office. Tax Collector’s receipt for title application (White Slip). This is an important document which can prove you did apply for title on a sold vehicle
3. A copy of the Federal Trade Commission Buyer’s Guide, also known as the “As-is” statement
4. Odometer Disclosure Statement
5. A copy of the front and back of the title signed by buyer and seller. Also, the Power of Attorney (if required to complete the titling process). See more about powers of attorney in Chapter 6, Titling Vehicles
6. The VTR Form 136, County of Title Issuance, on which the consumer elects which county they desire to have their vehicle registered in
7. Other Forms. Copies of other forms may be necessary depending on the type of sale and will need to be kept as a part of the dealer’s records. Most of the forms may be obtained from the Tax Assessor-Collector's office or your local Vehicle Titles & Registration office or their respective websites. VTR forms can be found on the DMV website. Forms involving taxes may be obtained from the State Comptroller's office or its website, www.window.state.tx.us/taxinfo/taxforms/14  www.window.state.tx.us/taxinfo/taxforms/14-forms.html

Other Records
8. The Dealer’s Reassignment of Title for a Motor Vehicle Form (Form VTR-41A) should be used if all available assignments on the back of a Texas title are signed or the negotiable title is from another state or foreign country
9. Texas Motor Vehicle Sales Tax Exemption Certificate – For Vehicles Taken Out of State (Comptroller's Form 14-312 See page 7-8) is used if a vehicle is sold to someone who claims they are taking it out of the state or the country, whether the transaction is a wholesale or retail sale. The original must be kept with the sales file with a copy filed with the Comptroller and a copy to the buyer. Since dealers are required to apply for vehicle titles, this form is an important record that proves the consumer advised the selling dealer the vehicle was leaving the state
10. Texas Motor Vehicle Seller-Financed Sales Tax and/or surcharge report, Comptroller form 14-117 which must be filed monthly by Seller-Financers. Form is available on the Comptrollers website

All wholesale motor vehicle dealer transactions must keep at minimum the following records, either via paper or electronically, for all vehicles, purchased, leased, and sold:

1. A Purchase Record, Bill of Sale, Sales Contract, or Auction Receipt showing the date of purchase, vehicle identification number (VIN); name and address of seller and mileage statement
2. A photocopy of both sides of the negotiable title after reassigned to the licensed dealer following a wholesale transaction
3. Odometer Disclosure Statement if the odometer disclosure is not integrated into the title
4. The Texas Motor Vehicle Sales Tax Resale Certificate is to be filled out, signed by the buying dealer and kept in the dealer's sales file. Do not send the completed certificate to the Comptroller. When the State Comptroller audits your records, the auditor will want to see this form in your records. Form 14-313 is available from the State Comptroller’s Office

The following records for consignment sales transactions should be kept:

1. A written consignment agreement for the vehicle or a power of attorney covering the vehicle. A written consignment agreement should be completed by the licensed dealer and made a part of the sales file
2. A copy of the title should be at the dealer's licensed location for inspection by buyer or an MVD representative. It is recommended that the copy of the title be attached to the consignment agreement
3. Other record-keeping requirements for the actual sale of a consignment vehicle are the same as those of a retail sale

In addition to the records required to be maintained under Texas law you are also required to maintain, at minimum, the following records under Federal law, which are covered in greater detail later in the course, for a period of 5 years:

• Copies of Federal Trade Commission Buyers Guide for each vehicle sold
• Copies of cash reporting IRS Form 8300 if applicable
• Odometer disclosure statements for vehicles not covered under Texas laws
• Written Federal Trade Commission Red Flags Rule policy
• Copies of any forms related to Truth in Lending Act, Equal Credit Opportunity Act, or Gramm Leach Bliley Privacy Act
• Office of Foreign Asset Control filings

Be sure to make front and back copies of the title of every vehicle you purchase.

We are here to help you start your Texas motor vehicle dealership!

Texas Dealer License

Delus Johnson-Lead Instructor
Automobile Dealer Training Association