What was the most essential Dealer Compliance topic that you learned from TIADA in 2025?
Goodbye Temp Tags, Hello Metal Plates New TxDMV Identification Rules
New Inspection Laws
Personal Property Found in Repossessed vehicles All of the above
Also In this issue:
– TIADA Big Texas Tour 2025 Recap: Highlights from Dealer Town Halls Across Texas – OCCC Motor Vehicle Finance Compliance Checklist – Avoiding Advertising Violations in 2026 – How TxDMV’s Dealer Compliance Services is Partnering with Texas Dealers – Legal Corner: New Law Adds to Lien-Holder Protection in Liability Insurance Claims
TIADA Board of Directors
PRESIDENT
Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753
PRESIDENT ELECT
Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301
CHAIRMAN OF THE BOARD
Greg Reine/Auto Liquidators
39670 LBJ Freeway Dallas, TX 75237
SECRETARY
Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 79915
TREASURER
Lowell Rogers/11th Street Motors 1355 N. 11th St. Beaumont, TX 77702
VICE PRESIDENT, WEST TEXAS (REGION 1)
Jose “Pepe” Muñoz/Gael Auto Sales 7661 Alameda Ave. El Paso, TX 79915
VICE PRESIDENT, FORT WORTH (REGION 2)
Matt King/Matt King Motor Company. 2715 W. Pioneer Pkwy. Arlington, TX 76013
VICE PRESIDENT, DALLAS (REGION 3)
Lucas Ponder/Auto Smart 4545 N. Stateline Ave. Texarkana, TX 75503
VICE PRESIDENT, HOUSTON (REGION 4)
Christina Sabillón/Mi Tierra Auto Sales 4545 Spencer Hwy. Pasadena, TX 77504
VICE PRESIDENT, CENTRAL TEXAS (REGION 5)
Harry Buchelly/Discovery Auto Sales 8140 North Lamar Blvd. Austin, TX 78753
VICE PRESIDENT, SOUTH TEXAS (REGION 6)
Chad Lancaster/Chacon Autos 1400 SE. Military Dr. San Antonio, TX 78214
VICE PRESIDENT AT LARGE
Cesar Torres/Lofi Motors 4634 Ayers St. Corpus Christi, TX 78415
VICE PRESIDENT AT LARGE
Tyler Simmons/Abilene Used Car Sales, Inc. 2150 N. 1st Street Abilene, TX 79603
TIADA
inside TexasDealer
Dear Member,
TIADA Membership Renewal No6ce
As we close yet another year, the TIADA staff and our Board of Directors would like to thank you for your unyielding support. Your commitment to the associaAon has enabled us to:
• Advocate for you at the Capitol and represent your voice before lawmakers and regulators across Texas.
• Keep you abreast of what is happening in the industry through the Texas Dealer magazine, industry enewsleGer, and txiada.org. Whether it’s compliance, changes to state requirements, new products and services or best pracAces, our goal is to make sure we are providing the industry informaAon you need in our arAcles, blogs, and through our social media.
• Provide Professional Dealership Compliance Consulta6on. We are available and ready to take your phone call or email and assist you with that tricky compliance quesAon. We have a number of aGorneys working with us; If we don’t know the answer (and we usually do) we will find it for you.
Remember that your membership can easily pay for itself by taking advantage of your member benefits, namely the TIADA AucAon App, where our members have access to over $10,000 in buy/sell fee coupon savings at 50 parAcipaAng aucAons across Texas with the vast majority of them now accepAng coupons for online as well as on-site purchases. With your renewal, you will receive your 2026 coupons right to your smart phone.
Simply put, TIADA is your associa6on, and we are here to protect your interests and commiEed to seeing you succeed for many years to come. Please do not hesitate to contact us if you have any quesAons about your membership benefits: www.txiada.org/dealer_benefits.
My very best to you and your family this holiday season,
Trevor Jennings TIADA ExecuAve Director
2026 Membership Dues: $499
Login to your account at txiada.org to renew online
Membership dues paid or gifts given to TIADA are not deductible as charitable contributions for income tax purposes but may be deducted as miscellaneous itemized deductions, subject to IRS restrictions. It is estimated that 20% of your dues dollar is used for lobbying activities and is therefore not deductible.
Company Name:
Contact Person:
Address:
Phone: Email:
Payment type (please check one): Check or money order (payable to TIADA) Credit Card
Credit Card #
Sec. Code: Exp. Date
Name on Card (please print): Mail to: TIADA Renewals │ 9951 Anderson Mill Rd. Suite 101 │ Austin, TX 78750 Email to: membership@txiada.org
officers’ message
Staying Ready: Compliance, Community, and Taking Care of Our Business
Running a dealership isn’t simple. Like many business owners, we wear a lot of hats. We’re managing inventory, financing, payroll, and sales, while also taking care of our customers and our employees. And for many of us, when we leave the lot, we’re heading straight into being husbands, fathers, and coaches — taking our kids to football practice, helping with homework, supporting our families however they need us. There’s a lot on our shoulders every day. And with all that in motion, one thing we can’t afford to overlook is compliance.
As we close out 2025, many of us are taking stock of what worked well this year and what we need to adjust going into 2026. If there’s one constant across every dealership — large or small — it’s that staying compliant protects the business we’ve worked hard to build. Compliance isn’t just paperwork. It’s risk management. Its setting the tone for how we do business. It’s making sure our sales process, our recordkeeping, our titles, and our trainings are consistent and strong so that when an audit or review comes, we’re already prepared.
Here’s the part that matters — we don’t have to do this alone. TIADA is here to help us stay ahead — not just react when a problem shows up.
Being part of the TIADA Big Texas Tour this year reminded me of the strength and unity of our dealer community — and how much support we provide one
by Cesar Stark S&S Motors (El Paso)
TIADA SECRETARY
another. Across the stops our board and I attended—. from El Paso to Arlington, Abilene, to Lubbock — we sat down with dealers, TxDMV, county tax assessor-collectors, and partners who share the same focus: protecting our businesses and doing the right things the right way. And you know what was consistent across all those regions? The commitment to compliance, community, and running our operations with integrity. Those rooms were collaborative, energized, and honest — proof that when we connect and learn from one another, we become stronger, together.
We are more than vehicle sellers. We are business owners supporting local economies, employing our neighbors, and helping families stay mobile. Protecting that work means staying compliant, staying informed, and staying connected.
As we move into the new year, I encourage all of us to review our processes, refresh our training, and continue to lean into the resources TIADA provides. They were built with our real-world challenges in mind.
We are a strong dealer community in Texas because we learn together, work together, and look out for each other. Let’s carry that momentum into 2026—confident, prepared, and committed to running our businesses with excellence.
We’re in this together.
You don’t have to navigate compliance alone — TIADA is here to support you.
Recruit new TIADA dealer members and earn cash, rewards and perks!
1 new member $100 and your name published in the newsletter.
3 new members $300 and your name published in the newsletter and the TIADA Texas Dealer magazine.
5 new members $ 500 and your name published in the newsletter and the TIADA Texas Dealer magazine, plus one (1) free night’s lodging at the TIADA 2026 conference.
new
20 new members
$1,000 and your name published in the newsletter and the TIADA Texas Dealer magazine, plus two (2) free nights lodging at the TIADA 2026 conference.
2 , 250 which includes all the Recruit 10 prizes, plus $1,250 in hotels, meals, travel, and expenses to ANY destination of your choice.
legal corner
Reviewing 2023 Texas Law Protecting Lien-Holders
Dealer Question: I just found out that my customer has received and cashed a settlement check from a third party’s liability carrier that covers damages to the vehicle for which I hold a perfected lien. My company was not included as a payee on the check. My customer has spent the money and refuses to pay the balance on the vehicle, which was declared a total loss. Do I have any recourse against the insurance company? And if I have to sue the insurance company, can I also claim my legal expenses?
Answer: Yes to both questions.
Texas law currently protects a vehicle-lien-holder’s interest in liability insurance proceeds attributable to damage to the vehicle. And an amendment to the law, proposed by TIADA and passed by the Texas Legislature in the 2023 regular session, adds the recovery of attorney’s fees to a successful suit to enforce the terms of the existing law. First, some background. As the average wholesale cost of used cars spirals upward, and the amount of risk that dealers put on the street increases, the importance of vehicle insurance coverage to the lien holders grows. Thus, most secured creditors are requiring property damage insurance as part of their retail installment contracts and are actively
monitoring lapses and cancellations and, in some cases, responding to lack of insurance coverage by repossession or forced placement of insurance coverage. Many Buy-HerePay-Here dealers are moving to collateral protection programs that offer additional control over the terms of and continuity of coverage.
BHPH dealers who a few years ago
by Michael W. Dunagan TIADA COUNSEL
holder to be listed as loss payee. Such a listing gives the lien holder certain contract rights in the policy proceeds, and prevents the insurer from paying the insured for vehicle damage without including the lien holder.
Because of the nature of liability insurance, which covers third parties who are damaged or injured by the insured, there is no corresponding
Texas law currently protects a vehicle-lien-holder’s interest in liability insurance proceeds attributable to damage to the vehicle. And an amendment to the law, proposed by TIADA and passed by the Texas Legislature in the 2023 regular session, adds the recovery of attorney’s fees to a successful suit to enforce the terms of the existing law.
never seriously enforced the property damage insurance provisions of their contracts are realizing that a few total losses at today’s prices can severely impact the bottom line.
To ensure that the lien-holder’s position is protected on a policy of property damage insurance owned by the debtor, it is necessary for the lien
loss-payee provision. One particularly frustrating situation for vehiclelien-holders is when a liability claim for property damage to a vehicle is paid directly to the debtor. A common example of this situation: A third party, who has liability coverage, causes an accident that damages the lien holder’s collateral. The
liability carrier, ignoring the lien holder’s status, negotiates a settlement directly with the debtor, and issues a check payable to the debtor without mentioning the lien holder. The lien holder subsequently finds the vehicle, a total wreck, in a pound or body shop. The debtor has by now often purchased another vehicle, probably using the insurance proceeds, and refuses to make further payments to the lien holder.
Several years ago, TIADA was able to convince the Texas Legislature that this situation was extremely
unfair and needed to be corrected. A bill was passed that placed a lien on liability insurance proceeds for vehicle damage in favor of the holder of a perfected motor-vehiclelien (that is, a lien that has been recorded in the state’s title data base). That law, which appears at Chapter 61 of the Texas Property Code, has probably saved vehicle lien holders millions of dollars since its passage.
The change in the law was motivated by the experience of some lien holders that insurance adjusters were purposely trying to keep the
lien holder out of settlement discussions. In some cases, the insurance adjustor would tell the lien holder that the insurer had no obligation to talk with the lien holder and no obligation to see that the insurance proceeds were payable to the lien holder.
The typical response a lien holder received from the liability carrier, after finding out that the debtor had been paid and had absconded with the money, was something to the effect that the liability insurance carrier has no obligation to check for recorded liens and no obligation to include the lien holder as a payee. Interestingly, many insurance adjustors are still today telling lien holders that the insurance company has so obligation to them, despite the clear language of Chapter 61.
CHRISTMAS
As further indication that lien holders were being intentionally excluded from the settlement process, many insurance companies would contract with the debtor to allow the debtor to keep the salvage, deducting the salvage value from the settlement. This way, the insurance company didn’t need to obtain a released title certificate from the lien holder. Of course, the debtor often failed to claim the salvage and it was often sold to satisfy a storage lien.
Now, if a liability carrier goes around the recorded lien holder, it can be sued and forced to pay again. We still encounter cases where debtors are paid directly. When confronted, some insurance adjusters claim no obligation to the lien holder. Some claim that they aren’t obligated to include lien holders as payees on settlement checks when the amount at stake is under a certain level (we’ve found that some insurance carriers impose their own internal minimum amount, under which a lien holder is not contacted or included). But the law contains no such limit. Whether they are ignorant of the change in the law or just bluffing, we don’t know. In almost every such case, however, we’ve been able to force the company to pay the lien holder.
Under the law, the recorded lien holder’s claim extends to the lesser of (a) the fair market value of the vehicle before the damage; (2) the reasonable cost of repair to the vehicle; or (3) the balance owed to the lien holder by the debtor. The liability carrier can satisfy its obligation by making the settlement check jointly payable to the debtor and the lien holder. If the debtor forges the lien holder’s endorsement on the check and cashes it (unfortunately, not a rare occurrence), many insurance companies claim no further liability, and deflect responsibility to whomever cashed or deposited the check with the forged endorsement. We’ve seen instances where debtors went to the trouble of having rubber stamps made to stamp lien holders’ names on the endorsement lines on the back of checks. At least one Texas Court of Appeals has ruled, however, that the insurance company can remain liable to the lien holder when it authorizes payment over a forged endorsement.
It is very important to note that to be protected under this law, the lien holder must have filed an application for transfer of title to the buyer reflecting its lien. All third parties are legally on notice of the lien when it is filed, even if the state hasn’t yet processed the new title certificate. On the other hand, the law offers no protection to the lien holder who has not transferred the title, as an unrecorded lien holder would not fit the definition of “mortgagee.”
If a lien holder becomes aware of an accident in which the liability insurance of a third party will likely be involved, the dealer should contact the liability carrier, give lien information, and request (in writing) that the lien holder be included in the settlement negotiations as they relate to the property damage to the vehicle. The identity of the liability carrier can often be obtained from the accident report filed by the police. In the event that the debtor is paid directly, without inclusion of the lien holder as payee on the
Upcoming Events
DMV REQUIRED COURSES
Texas Pre-licensing Education Course
TxDMV approved course to satisfy all training requirements for completing your application to obtain an independent dealer license or General Distinguishing Number (GDN).*
*For more information see Frequently Asked Questions Access Dealer Education Course Resources.
Curso de Educacion
Pre-Licencia de Texas
Curso aprobado por el Departamento de Vehículos de Motor de Texas (TxDMV) y que cumple con todos los requisitos para completar la aplicación para obtener una licencia de dealer independiente, también conocida como el GDN (General Distinguishing Number).**
**Para mas información ver la sección de Preguntas Frecuentes.
Acceso a los Recursos del curso educativo para los dealers.
Texas License Renewal Education Course
TIADA DEALER ACADEMY
For online registration and information, see www.txiada.org
ON-DEMAND OFFERINGS
For a complete list of available on-demand education offerings, go to www.txiada.org/on_demand
Complying with the Safeguards Rule Offered in English and Spanish
Repossession 101: What You Need to Know Video Course
The Basics of Transferring Titles Offered in English and Spanish
The Deal Jacket Offered in English and Spanish
Legal Reference Books
Attorney Mike Dunagan’s must-have repossession and financing books for BHPH dealers.
TxDMV approved license renewal education course (For renewal applicants licensed on or after September 1, 2009 whose ownership and management structure of the dealership has changed since the last renewal and the person who previously took the course is no longer with the dealership) SAVE
check, the lien holder is entitled under the law to bring action against the insurance company for breach of its lien.
The passage of House Bill 4142 in 2023 adds the following language to Chapter 61:
“Sec. 61.006. ATTORNEY’S FEES. The prevailing party in an action to enforce this chapter is entitled to recover reasonable attorney’s fees.”
This change further enhances the protections vehicle lien holders have enjoyed for many years.
Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for 50 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.
Welcome toTIADA
Joined September and October 2025
DEALER MEMBERS
Beaumont Auto Finance Dba Ez Ed’s Autos LLC
Crystal Lynn Carter 11 N 11th St, Beaumont, TX 77701
Garcia’s Auto Group LLC
Samuel Garcia 2000 South I-35 Frontage Rd, Suite Q-8C, Round Rock, TX 78681
McDavitt Motors
Carlos Enrique Garza ................................... 1833 Southmost Rd, Brownsville, TX 78521
Padilla Automotive
Dario Padilla 2125 W Pioneer Pkwy, Ste. C6, Grand Prairie, TX 75051
Paradise Motors LLC
Erica Lopez 2821 S Closner Blvd, Edinburg, TX 78539
Planet Car
Hatem Mojahed 2727 S Garland Ave, Garland, TX 75041
ASSOCIATE MEMBERS
CNP Technologies
Tommy Weeks 806 Tyvola Rd, Ste 102, Charlotte, NC 28217
Jericho Information Technology
Brice Beard 3939 Belt Line Rd, Suite 250, Addison, TX 75001
Repairify
Liz Shafton 5700 Tennyson Parkway, Suite 600, Plano, TX 75024
Auto Retail Faces Sophisticated Fraud Threats: Latest Trends and Industry Response
by Andy Mayers Lender Solution Strategist at Cox Automotive
The auto retail sector is grappling with a surge in sophisticated fraud schemes. In our industry, fraud exposure is reported to be over $9 billion and is top of mind for not only dealers but lenders. The mobility and high value of vehicles make them attractive assets for criminals. Cities with strong logistics networks and proximity to ports, including Houston, have become hotspots for auto-related fraud, facilitating the overseas shipment of stolen vehicles.
Fraudsters are adapting their tactics to exploit vulnerabilities in auto lending, with significant consequences for consumers, dealers, and lenders.
In this environment, retailers and lenders alike need to stay aware and vigilant.
Bust Out Fraud and Income Misrepresentation Lead the Way
Fraudsters are adapting their tactics to exploit vulnerabilities in auto lending, with significant consequences for consumers, dealers, and lenders. One of the most concerning trends is “bust out fraud,” where fraudsters are executing a series of transactions
in a short period of time, leveraging synthetic identifications that have been established over several years.
Bust-out fraud is typically perpetuated by a group. These operations are a serious concern for auto lenders and credit networks, as they build up creditworthiness and dealer trust over time, then rapidly execute a series of high-value fraudulent transactions before “busting out” or disappearing.
Income misrepresentation is another prevalent type of fraud dealers should be aware of. Buyers may inflate income figures to secure loan approvals, and this is easier than ever thanks to AI-powered tools that can generate convincing fake pay stubs in minutes. Robust income verification processes at the dealership can help reduce the risk from these illegitimate loan contracts which are ultimately delayed or rejected outright by lenders, negatively impacting dealers’ cash flow and profitability.
Impact on Consumers and the Industry
The rise in fraud has led to higher default rates, even among borrowers with high FICO scores. Economic instability during and after COVID-19 has exacerbated this trend, affecting both prime and super prime credit segments. The costs associated with fraud are ultimately hurting profits for dealers and affordability for
consumer, as dealers and lenders need to adjust interest rates and loan conditions to offset losses, hurting affordability and pushing some legitimate, would-be buyers to the sidelines.
Industry Response and Next Steps
To combat these threats, all dealers need to review their operating processes and stay vigilant. There are many resources available. Cox Automotive’s Dealertrack offers many compliance solutions that integrate with various third-party tools for identification verification to run OFAC checks, Red Flags synthetic fraud checks, and Out of Wallet questions. Lenders are also investing heavily in fraud mitigation tools. Dealerships should also consider enhanced employee training, social media verification, and ongoing data analysis that can help them stay ahead of evolving fraud tactics.
Ultimately, reducing fraud risk is an industry-wide challenge that will require a concerted effort from dealers, lenders, technology providers and even consumers. For additional tips on fraud prevention and compliance guidelines, download the annual Dealertrack Compliance Guide at https://us.dealertrack.com/content/ compliance-guide/en.html . The 2026 edition will be published in January.
board of directors meeting minutes
Hilton Airport | Austin, TX
October 29, 2025
by TIADA Staff
The members of the Board present for all or part of the meeting were: Jose Muñoz, Cesar Stark, Greg Phea, Greg Reine, Russell Moore, Tyler Simmons, Matt King, Cesar Torres, Harry Buchelly, Lucas Ponder, Chad Lancaster, Lowell Rogers
TIADA staff present included: Eddie Hale, Interim Executive Director
At its meeting on Wednesday, October 29, 2025, the TIADA Board of Directors took the following action:
Eddie Hale, the Interim Executive Director, explained the process for selecting a permanent Executive Director.
A motion was made to cast votes for the position of Executive Director via a secret ballot. The motion failed due to lack of second.
A motion was made to offer the Executive Director position for the Texas Independent Automobile Dealers Association to Trevor Jennings. Moved by Lucas Ponder. Seconded by Tyler Simmons. The motion passed unanimously.
Meeting adjourned at 3:40 pm.
Respectfully submitted, Russell Moore, Secretary
A complete copy of any reports referenced in this document and more detailed notes from the meeting are on file at the TIADA office and available upon request.
BHPH Legal Survival workshop presented by and sponsored by
DFW Workshop • Jan. 12, 2026 • 9am–4pm
Join us in Arlington January 12 for an exclusive all-day compliance workshop featuring TIADA Legal Counsel Michael W. Dunagan. With 50 years of legal leadership and policymaking experience, Dunagan has guided Texas dealers through every major legal challenge. This oneday seminar is designed to give BHPH dealers the knowledge and tools necessary to stay compliant while effectively managing their business operations.
Monday, January 12, 2026
Arlington, Texas
Drury Plaza Hotel Dallas Arlington 101 W Road to Six Flags St. | Arlington, TX 76011 817.261.2100
Don’t miss this rare opportunity to learn directly from the attorney who has shaped dealer law and policy for 50 years.
MEMBERS – 1st Registrant $247, each add’l $197 (must be from same dealership) NON-MEMBERS – $497
feature Maximum Finance Charge Rates for 2026
by Michael W. Dunagan TIADA Counsel
Dealer Question: What is the maximum finance charge rate I can use on a motor vehicle retail installment contract?
Answer: Dealers who hold vehicle finance licenses issued by the Office of Consumer Credit Commissioner (OCCC) are authorized to finance the sale of vehicles, and are allowed to add finance charge or time-pricedifferential to the amount financed (while the term “interest” is commonly used interchangeably with finance charge and time-price-differential, “interest” actually is the amount charged on a loan of money, and should not technically be used in the context of financing the sale of a motor vehicle).
The legislature has established a sliding scale of maximum rates, with higher rates allowed on older cars. The maximum rate that sellers of older vehicles can add to the amount financed is $15 per $100 per annum or, stated another way, 15 percent add on (see accompanying chart). Depending on such variables as the length of the repayment period, the amount of each payment, and the frequency of payment (weekly, bi-weekly, semi-monthly or monthly), the annual percentage rate on 15 percent add on can exceed 26 percent.
Chapter 348 of the Texas Finance Code allows sellers of vehicles to finance any unpaid balance at rates that generally exceed the rates of interest that can be legally charged by banks and traditional lenders.
For purposes of setting maximum rates of finance charge, Chapter 348 establishes four classes of vehicles based on the vehicle’s model year. The chart below shows
allowable rates for calendar year 2026. These rates are valid on sales that take place between January 1, 2026, and December 31, 2026. The maximum rates “roll over” on January 1 of each year.
The maximum rates of finance charges are stated in the Finance Code as “add-on” rates. For example, for vehicles that fall into the class-four category, sellers can charge fifteen dollars per one hundred dollars financed per annum. These are maximum rates, and any rate lower than the maximum can be charged.
“Add-on” rates should not be confused with “annual percentage rates” which are the rates required to be disclosed on loans and retail installment sales by federal law. The Annual Percentage Rate (or APR), which appears in the so-called “Fed Box,” will usually be substantially higher than the add-on rate.
All financing sellers, with a few exceptions, are required by federal law to disclose the rate of finance charge as an annual percentage rate, or APR, on their contracts. Since Texas law sets maximum rates as addon rates, it is necessary to first calculate the amount of finance charge the creditor chooses to assess within the legal limit, then determine the APR for disclosure purposes. Federal Truth-In-Lending requires that any finance charge rate be advertised or expressed to a consumer as an APR. It is thus improper to advertise or discuss add-on rates with customers.
The process of calculating the APR on contracts that provide for payments other than equal monthly payments is extremely difficult. Most dealers rely on specialized software (often referred to as dealer management
Maximum Finance Charge Rates for Calendar Year 2026
One 2027 and 2026 new
Two Any new not appearing in Class One above; 2026, 2025 and 2024 used 10 percent add-on 18 percent APR
Three 2023 and 2022
Four
software, or DMS) to perform this function.
Without appropriate software, it is virtually impossible for a creditor who collects weekly, bi-weekly, or semi-monthly payments to accurately calculate an APR and other required disclosures. Dealers should not guess at or estimate an APR as incorrect disclosures are the basis for claims for statutory damages and attorneys fees.
Note that the chart also includes a column for what is referred to as an “Alternate Rate.” This rate is 18 percent APR for all four classes. Many dealers have questioned what the alternate rate is, and how it affects the rates they can charge.
percent A.P.R. on a typical weekly payment contract, a higher legal return can be achieved using the standard rate than the alternative rate.
On the other hand, the sale of a class-two vehicle would be subject to a 10 percent add-on maximum. Since the actual yield on 10 percent add-on would be lower than 18 percent, the alternative rate would allow the seller a higher legal return.
In order that credit consumers can shop rates on an “apples to apples” basis, federal law requires all discussions about rates to refer to the chosen universal rate, or the A.P.R.
The alternate rate is an optional rate. A dealer has the option to use either the standard or alternate rate. As an example, a dealer financing the sale of a 2020 model- year vehicle can charge up to 15 percent add-on (since this year model falls into Class Four) or the alternative rate of 18 percent A.P.R. Since the 15 percent add-on rate translates to over 26
OCCC rules also require the disclosure of a “contract rate” which is different from the add on rate and A.P.R. DMS providers that comply with Texas requirements properly calculate and disclose the contract rate.
Remember that the socalled “add-on rate,” which is the rate used to calculate the finance charge added to a contract, shouldn’t be used on the contract documents or in any communication with consumers, such as advertising. In order that credit consumers can shop rates on an “apples to apples” basis, federal law requires all discussions about rates to refer to the chosen universal rate, or the A.P.R.
Spotlight Q&A
Dave Magers
Mecum Auctions — Collector Stories
Driving the Texas Collector Market: Inside Mecum Auctions
I recently had the chance to attend the Mecum event in Dallas, where I sat down with Dave Magers, CEO of Mecum Auctions. Mecum has become a national icon in the collector car world, connecting passionate buyers and sellers through high-energy, unforgettable live auctions.
The company’s story began in 1988 around a humble kitchen table in Marengo, Illinois, when Dana and Patti Mecum turned a shared love of cars into a business. Dana, a lifelong car enthusiast, grew up immersed in the automotive world. His family’s involvement in the car business laid the foundation for his deep expertise and enduring passion for collector vehicles. From these modest beginnings, Mecum has grown into one of the most respected and recognized names in the auction industry.
Since 2013, Dave Magers has led the company, bringing a rare combination of business acumen and lifelong automotive passion. With over 40 years of experience in business and finance, he is a Certified Public Accountant, holds an MBA, and has served on multiple boards. Beyond his impressive professional credentials, Dave is also a committed philanthropist and lifelong car enthusiast, ensuring that every auction benefits from both his strategic vision and hands-on knowledge.
Because the auction floor is always buzzing with activity, and it’s so easy to get distracted by all the amazing cars on display, our conversation was split between the block and email follow-ups. Even in the brief moments I observed, it was clear how personally Dave invests in every detail of the operation — from logistics and customer experience to the excitement of the bidding itself. His hands-on approach is more than leadership — it’s a testament to his commitment to the Mecum community and the collector car market at large.
by Earl Cooke TIADA DIRECTOR OF REGULATORY AFFAIRS
Q: Mecum has become synonymous with rare and collectible cars. How do you define a “Mecum car,” and what determines which vehicles make it to auction?
Dave Magers: We pride ourselves on providing collector cars for everybody. I often say that we have all makes, all models, all colors, all years, and one for every pocketbook, because we sell cars that are $5,000, and we sell cars that are $20 million.
With that said, we’re a company that grew up on American muscle cars, and American muscle cars are still the heart and soul of Mecum auctions — those iconic ‘60s and ‘70s Chargers, Challengers, Corvettes, Mustangs. When you come to a Mecum auction, you’ll see a pretty high concentration of those cars, but that doesn’t mean that’s all we have. We also feature exotics, prewar classics, postwar models, and increasingly, cars from the ‘80s and ‘90s. We try to create an eclectic mix that appeals to collectors at every level. The goal is that everyone who walks through the doors — whether it’s their first auction or their fiftieth — can find a car that excites them. It’s not about setting a threshold of value or rarity; it’s about offering the full spectrum of collector cars.
Buckeye is a Proud Partner of the Texas IADA supporting the independent dealers of Texas
Q: Looking back at past auctions, is there one car you wish you could have purchased for yourself — just one — and why?
Dave Magers: Just one is tough — there are always 10 or 15 cars at every auction that I admire. But the one that sticks out most happened in Dallas a few years ago. As you walked through the front entrance, right in front of you were two LaFerraris — one coupe and one Aperta, which is the convertible version. I’m a Ferrari guy, and I’ve often thought that if I were going to pick a single car that had gone through our auction, it would have been that LaFerrari Aperta. There’s something about that combination of engineering, design, and raw beauty that just stops you in your tracks. You don’t just admire it — you feel it.
Q: Texas buyers have a distinct automotive personality. How would you describe their tastes and preferences compared to other regions?
Dave Magers: If there’s one thing that defines a Texas auction, it’s trucks — especially vintage pickup trucks from the ‘50s, ‘60s, and ‘70s. Lately, we’re seeing trucks from the ‘80s and ‘90s generating serious interest, too. Texas buyers love trucks, and you’ll see more collectible pickups at a Dallas/Fort Worth or Houston auction than anywhere else in the country.
But Texas isn’t only about trucks. Collectors here have a broad taste. They appreciate classic muscle cars, exotics, and unique vehicles that carry personal or cultural significance. There’s a mix of nostalgia and practicality in the Texas collector mindset, and our auctions are designed to serve that wide spectrum.
Q: How is the Texas automotive market evolving, and what trends are shaping Mecum’s approach to both wholesale and collector auctions?
Dave Magers: The market is evolving just like everywhere else, but there’s one noticeable shift: younger collectors are entering the space. People in their 30s and 40s are now bidding on cars they remember from their youth — ‘80s and ‘90s cars, not just classic muscle from the ‘50s, ‘60s, and ‘70s.
They’re after vehicles they grew up seeing in movies or riding around in as kids. This means our auctions are diversifying. It’s no longer just about vintage American muscle; it’s about making sure there’s something for the next generation of enthusiasts. We want to offer a full spectrum so every visitor finds a car that resonates with them.
Q: Mecum regularly handles some of the most iconic and high-profile cars at auction. What’s one memorable vehicle or moment from a recent Texas auction that really stood out to your team, and why?
Dave Magers: I have two moments that really stand out. The first was in Houston when we sold a GT40, which at the time was the most valuable car we had ever sold. I remember we had one bidder in the audience and another bidding by telephone. I think it sold for maybe $7 million, somewhere in that range, and as the bidding got higher and more intense, the crowd really got into it. When the hammer finally fell, the telephone bidder was the one who won the car. Come to find out, he was actually mountain climbing out west in Colorado at the time of bidding. He didn’t have cell service, so he found a little dive bar in the mountains with a telephone, and he was standing there placing bids. As soon as he won, he went right back to mountain climbing. I mean, that’s dedication! That’s probably my favorite story.
The second one is a bit more emotional. Dana Mecum and I were sitting in the front row one day before the Houston auction, and an older gentleman walked in alone. He stopped to thank us for being there and said, ‘I’m here to bid on that 1958 Buick in today’s lineup.’ I asked him what drew him to that particular car. He said, ‘Well, my dad bought that Buick new in 1958. I remember him bringing it home, wanting to take us for a ride. My mom got in the car, my brother and I were in the backseat, and I was about five years old. We went for ice cream and milkshakes, and as soon as my dad handed me my milkshake in the backseat, I spilled the whole thing on the seat of his brand-new car.’
I asked if the Buick he was bidding on was just like his dad’s. He said, ‘No, that car is the one my dad owned. The stain from the milkshake is still in the backseat.’ His
1964 Ford GT40
father was 90 years old, and he wanted to buy the car as a Father’s Day gift. We put a camera crew on him during bidding, and he remained stoic. But when he finally won, he went down on his knees sobbing uncontrollably. The crew even followed him home to capture the moment when he gave the car to his father. That kind of moment — personal, emotional, and tied to family history — is why these auctions mean so much beyond the cars themselves.
Q: Digital tools and online bidding are changing the auction experience. How has Mecum adopted these innovations, and how have customers responded?
Dave Magers: The pandemic accelerated our online bidding system. Before, we’d see maybe 50 online bidders
per auction; during the pandemic, that jumped to 1,500. Internet bidding is now more popular than telephone bidding. Our system allows remote bidders to feel like they’re sitting in the front row, talking directly to the auctioneer, and it’s seamless. We’ve also been exploring live online-only auctions for the future, but we still love the energy of a live audience. The crowd is part of the show—it’s entertainment first, transaction second.
Please be sure to see Part 2 next month
From high-stakes LaFerraris to a mountain-climbing GT40 and a deeply personal Buick, Mecum auctions are about more than just cars—they’re about memories, family, and the thrill of the collector experience. But behind the excitement and emotional stories lies an equally fascinating world of operations, logistics, and regulatory strategy. In Part Two, we will go behind the scenes to see how Mecum runs these massive auctions, navigates Texas regulations, and plans for the future of the collector car market.
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Dave Magers
on the cover
by TIADA Staff
Compliance tiada 2025 Dealer Proficiency Quiz
Test your compliance
chops!
Editor’s Note: The first ten questions have been taken from information that appeared in Texas Dealer magazine in 2025. The five bonus questions at the end come from information that has appeared in our industry emails and/or blogs posted on the TIADA website this year.
Compliance questions
1 . How does the move to metal plates enhance compliance and fraud prevention for Texas dealerships?
A. Metal plates include built-in security features that are difficult to counterfeit
B. Metal plates automatically register the vehicle to the buyer through TxDMV
C. Metal plates eliminate the need for temporary credentials
D. Metal plates allow counties to assign all plates directly to consumers
2. What major change regarding vehicle safety inspections took effect in Texas on January 1 , 2025?
A. Texas requires only emissions inspections statewide
B. Texas no longer requires annual safety inspections for non-commercial vehicles
C. Texas reduced inspections to once every two years for all vehicles
D. Texas inspection requirements now apply only to commercial fleets
3. Under Texas Finance Code §348.407, a dealer must notify the debtor within how many days of discovering personal property, and allow how many days to claim it before disposal?
A. 31 days; 60 days
B. 15 days; 31 days
C. 10 days; 20 days
D. 20 days; 45 days
4. True or False: Now that state-mandated vehicle safety inspections have ended, dealers no longer have any legal responsibility for the condition of the vehicles they sell.
A. True
B. False
C. False only for diesel vehicles
D. True only for vehicles under 125,000 miles
5. What is the primary compliance reason behind Texas’ transition from paper temporary tags to metal license plates?
A. To curb widespread fraud, theft, and toll evasion
B. To standardize plate expiration dates statewide
C. To eliminate county fees related to tag production
D. To reduce dealership storage obligations
6. What temporary tags does the Dealer Temporary Plate replace under HB 718, and when does the law take effect?
A. Buyer and permit tags; January 1, 2026
B. Dealer-issue demo plates; September 1, 2025
C. Vehicle-specific and agent-specific temporary tags; July 1, 2025
D. Mechanic and transporter tags; October 1, 2025
7. Why must dealers be registered and trained on the webDEALER system during the transition to metal plates?
A. It replaces all point-of-sale reporting requirements
B. It is the only authorized system for issuing and tracking metal plates
C. It allows dealers to print their own permanent plates
D. It guarantees faster county approvals
8. Texas law requires dealers to send a notice to the debtor before repossessing a vehicle.
A. Only for BHPH dealers
B. True
C. False
D. Only if the vehicle is over 10 years old
9. What steps should dealerships take to maintain compliance during the transition to new inspection laws?
A. Update pricing models and delay sales until DMS updates
B. Remove all references to inspections from dealer paperwork
C. Require buyers to sign a new inspection waiver
D. Verify DMS updates, review contracts, train staff, communicate with customers, and check white slips
10. What is the difference between a “10day” private-sale notice and a “20-day” strict-foreclosure notice in Texas?
A. The 10-day notice ends redemption rights; the 20day notice extends them
B. The 10-day notice precedes a private sale; the 20day notice allows the dealer to keep the vehicle as full payment if the debtor does not object
C. The 20-day notice applies only when the debtor has paid less than 40 percent
D. The 10-day notice applies only to commercial vehicles
Bonus questions
11. According to TIADA’s June 2025 legislative wrap-up, which bill authorizes dealers and RFCs to charge convenience fees on electronic payments?
A. SB 1603
B. HB 4134
C. HB 3297
D. SB 1902
12. According to TIADA’s March 19, 2025 blog post on metal-plate implementation, what must dealers do beginning July 1, 2025?
A. Issue metal license plates at the time of sale, unless another type is required
B. Issue paper tags until TxDMV deploys the new system
C. Wait for county approval before issuing plates
D. Issue both metal and paper plates to each buyer
13. According to TIADA’s November 20, 2025 breakdown of TxDMV’s new identification rules, which of the following actions will place a dealership out of compliance when processing a standard motorvehicle registration?
A. Accepting a valid foreign passport meeting federal admission criteria
B. Refusing to process a registration when a buyer presents an unexpired Texas License to Carry
C. Accepting an expired driver license as valid identification
D. Requesting a secondary form of ID in addition to a valid, unexpired photo ID
14. In TIADA’s March 19, 2025 compliance update on metal-plate implementation, which action is required of dealers to remain compliant when issuing plates after July 1, 2025?
A. Printing temporary tags for every transaction as a backup to metal plates
B. Retaining surrendered paper tags for 12 months before disposal
C. Recording each metal plate assignment in webDEALER at the time of issuance
D. Issuing metal plates only after county staff verifies buyer eligibility
15. According to TIADA’s November 20, 2025 article on new TxDMV identification rules, what must applicants now provide for standard motor-vehicle registration?
A. A valid, unexpired photo ID such as a driver license, qualifying passport, or Texas LTC
B. Social security documentation and utility bill
C. Any government-issued ID, even expired
D. Only a Texas driver license
feature
Building Trust Through Compliance: How TxDMV’s Dealer Compliance Services Is Partnering with Texas Dealers
by Nina Yonemoto and Charlie Escobedo Dealer Compliance Services (DCS), TxDMV
In the dynamic world of motor vehicle sales, change is constant. New technologies, shifting consumer expectations, and evolving regulations all shape the way dealerships operate. But amid all this movement, one thing remains steady: the importance of trust. Trust between dealers and customers, trust between businesses and regulators, and trust in the systems that keep the industry fair and secure. At the heart of that trust is compliance — not just as a legal requirement, but as a shared commitment to integrity.
Recognizing this, the Texas Department of Motor Vehicles (TxDMV) launched a new initiative in July 2024: the Dealer Compliance Services (DCS) team. Created in response to House Bill 718, which introduced new standards for dealer premises and license plate management, DCS is not just another regulatory body. It’s a team built to support dealers, educate them, and help them succeed in a changing landscape.
A New Chapter in Dealer Support
hands-on guidance tailored to each business. Since launching, the DCS team has already engaged with dealers in every corner of Texas, and the response has been overwhelmingly positive. Dealers have welcomed the opportunity to ask questions, get clarity, and work together with the state to build better practices.
What to Expect During a Visit
For dealers who haven’t yet met a Dealer Compliance Specialist, the process is designed to be straightforward and respectful. Specialists arrive in marked TxDMV fleet vehicles and carry official photo identification. Their first step is to speak with the individual responsible for managing the dealership’s metal plate inventory. From there, they conduct a comprehensive review of the premises and plate storage practices.
DCS was established within the Enforcement Division with a clear mission: to help dealers understand and meet the new requirements introduced by HB 718, while fostering a culture of transparency and partnership.
The formation of DCS marked a significant shift in how compliance is approached in Texas. Rather than relying solely on enforcement, TxDMV chose to invest in collaboration. DCS was established within the Enforcement Division with a clear mission: to help dealers understand and meet the new requirements introduced by HB 718, while fostering a culture of transparency and partnership.
To do this, TxDMV deployed 24 Dealer Compliance Specialists across the state. These specialists are not just inspectors — they’re educators and advisors. Their role is to visit dealerships, assess compliance, and provide
These visits are not about catching anyone off guard. They’re about ensuring that dealers are equipped to meet the standards outlined in Texas Administrative Code §215.140, which governs basic dealer premise requirements and how license plates must be stored and secured. Photos or videos may be taken to document compliance, but the tone of the visit is always collaborative.
If any deficiencies are found, you’ll receive clear, actionable steps to correct them — no surprises, just support.
Navigating New Territory Together
The transition to physical metal plates has introduced a new layer of responsibility for dealers. Unlike the previous system of printed, on-demand paper tags, metal plates require secure storage and careful inventory management. This shift has understandably raised questions
and concerns, and DCS is here to help navigate the adjustment period.
One of the most common questions dealers ask during visits is: “Is this storage method acceptable?” The answer depends on whether the setup prevents unauthorized access. The rule of thumb is simple: could someone who doesn’t belong to your dealership walk in and walk out with a plate? If the answer is yes, it’s time to reassess.
The regulation is clear. Plates must be stored in a locked and secured room or closet, or in a securely locked, substantially constructed safe or steel cabinet that is bolted or affixed to the floor or wall. The storage unit must be large enough to hold all dealer and buyer plates, including unissued and unassigned ones. During inspections, specialists look at the placement, security, and accessibility of the plates. Whether it’s a heavy desk drawer, a bolted cabinet, or a locked closet, the key is that the plates are protected from unauthorized access.
Why Sequential Plate Use Matters
Another best practice emphasized by DCS is the use of license plates in numerical sequence. While it may seem like a small detail, sequential plate usage plays a big role in maintaining order and preventing fraud. When plates are issued in order, it’s easier to track inventory, identify missing plates, and demonstrate compliance during audits.
Sequential use also supports transparency. It shows regulators that your dealership is organized and accountable, and it helps prevent situations where plates go missing or are misused. In short, it’s a simple habit that can save a lot of headaches — and protect your reputation.
Tools to Help You Stay Compliant
TxDMV understands that compliance isn’t just about rules — it’s about resources. That’s why the agency has developed several tools to help dealers prepare for inspections and maintain best practices.
The Dealership Premises Checklist (Form MVD LF628) is a quick-reference guide that helps dealers ensure their location meets licensing requirements. It’s a great starting point for internal reviews and staff training.
The department also maintains a dedicated webpage at https://www.txdmv.gov/dealers, where dealers can find a growing library of resources. From on-demand webinars to step-by-step user guides, the site offers practical, easyto-understand information designed to help dealerships stay compliant.
These resources are designed to make compliance achievable for every dealership, regardless of size or location. Whether you’re a small independent lot or a large multilocation operation, the tools are there to support you.
A Partnership Built on Integrity
At its core, DCS is about more than oversight — it’s about partnership. The team is committed to helping dealers succeed, not just by enforcing rules, but by building a culture of integrity and accountability. When dealers and regulators work together, the entire industry benefits. Customers gain confidence, businesses grow stronger, and the marketplace becomes more resilient.
This approach reflects a broader philosophy at TxDMV: that compliance should be a shared responsibility, not a burden. By investing in education and collaboration, the agency is helping dealers not only meet the standards — but exceed them.
Looking Ahead
As the industry continues to evolve, so too will the role of DCS. The team will keep listening, learning, and adapting to ensure that dealers have the support they need. Future initiatives may include expanded training, updated resources, and new ways to engage with the dealer community.
For now, the message is clear: if you see a Dealer Compliance Specialist pulling into your lot, know that they’re not there to catch you off guard. They’re there to help you thrive.
For questions, support, or to learn more about compliance requirements, reach out to DealerCompliance@ TxDMV.gov. The DCS team is ready to assist — because when it comes to compliance, you’re not alone.
feature OCCC Motor Vehicle Finance Compliance Checklist for 2026
by Christine Graham Director of Consumer Protection, Texas Office of Consumer Credit Commissioner
Essential Steps for Dealerships to Ensure Licensing, Reporting, and Data Security
As 2025 ends, the OCCC recommends that dealerships conduct a compliance review of financing operations. Conducting a year-end review will help make sure your business stays in line with all applicable laws and regulations. The following are some practical tips for conducting a Motor Vehicle Sales Finance compliance review:
1 The OCCC wrapped up Motor Vehicle Finance licensing renewal on October 31st. If you have an OCCC license, double check that you renewed your license. If you have not renewed your license, you need to contact the OCCC to reinstate your license.
2 If your dealership does not have an OCCC license, review business operations to ensure you are not engaged in unlicensed activity. It is considered financing when the cash price of a vehicle is accepted in one or more deferred installments, even if there is no finance charge (e.g. interest) and even if you are assigning the contract to a third party right away.
3 Get ready for annual reporting. OCCC Motor Vehicle Sales Finance license holders will begin submitting annual reports next year. The first report will be due on June 30, 2026 . To prepare for this requirement, dealerships should gather and maintain 2025 data for a) the number and amount of retail installment contracts originated, b) the number and amount of retail installment contracts acquired, and c) the number and amount and retail installment contracts serviced.
4 Thoroughly review repossession procedures to ensure all steps are executed correctly and to prevent any errors or oversights in the process.
5 Take some time to ensure your DMS is up to date, that settings are correct, that authorized charges are accurately labeled and assessed, and that you have the capability to generate required reports for OCCC examinations.
6 Review the FTC Safeguards Rule to ensure that your business has an appropriate information security program to protect consumer information.
While this compliance review isn’t exhaustive, it provides a solid foundation to start 2026 with your business strong and compliance well-managed.
feature
Revised Identification Requirements Add New Burdens for Initial Registration and Renewal
by TIADA Staff
Texas dealers are adjusting to newly tightened identification rules for initial motor vehicle registration and registration renewal following a recent clarification from the Texas Department of Motor Vehicles. The guidance, issued November 18, outlines expanded documentation requirements for applicants and imposes new verification steps that will have direct operational consequences for dealers across the state.
Stricter Framework for Acceptable Identification
At the center of the bulletin is a stricter framework for what constitutes acceptable photo identification. For several categories of special registrations and permits, applicants must now produce one of six qualifying documents. These include a driver’s license or state identification card issued by a United States state or territory, a United States or foreign passport meeting federal admission criteria, a United States military identification card, a North Atlantic Treaty Organization or Status of Forces Agreement identification document, a federal immigration or citizenship document, or a valid license to carry issued by the Texas Department of Public Safety. These requirements apply specifically to military service members serving out of state but domiciled in Texas, International Registration Plan customers, non-resident agricultural permit holders, annual permits, 72- and 144-hour permits, and One Trip or 30-Day temporary registrations. For these categories, the expanded list represents an immediate tightening of what had previously
been a more flexible identification process, raising the likelihood of longer transactions and more frequent document rejections.
Narrowed Requirements for Standard Registrations and Renewals
For all other initial registrations and renewals, the bulletin narrows the acceptable list to three forms of identification: a driver’s license or state ID issued by a United States state or territory, a United States or foreign passport, or a valid Texas license to carry. All documents
Because many customers rely on dealerships to process renewals quickly, dealers will likely absorb much of this verification responsibility, with little advance notice to prepare for the shift.
must be current. The bulletin specifically notes that expired passports are not acceptable for any type of motor vehicle registration, even if expiration occurred recently. In addition to listing acceptable documents, the guidance further restricts how certain documents are defined. For instance, a foreign passport must be accompanied by both a Department of Homeland Security admission stamp and either a permanent resident card or an unexpired immigrant visa. Likewise, driver’s licenses and state identification cards must meet REAL ID Act minimum
revised identification requirements.
Provide staff training focused on verifying REAL ID compliant documents and the stricter criteria for
to customers early, especially those who frequently request temporary permits or multiple registrations.
standards. These added conditions introduce another layer of complexity for dealership staff who must now evaluate whether documents meet intricate federal criteria before initiating registration transactions.
New Burdens for Renewal Processing
The changes also introduce a significant new expectation for registration renewals. Renewal applicants must verify their identity using one of the approved documents. This verification can occur through the Texas-byTexas interface, which automatically confirms the existence of a valid Texas driver’s license, or through direct presentation of identification documents to a dealer or county tax office. Because many customers rely on dealerships to process renewals quickly, dealers will likely absorb much of this verification responsibility, with little advance notice to prepare for the shift.
Dealer Concerns and TIADA’s Position
implementation expectations. TIADA is also monitoring how county offices interpret and apply the updated rules, since inconsistent enforcement could create even more confusion for dealers and customers alike.
Recommendations for Dealer Preparedness
Establish a process for handling customers who advocacy.
Confirm that any mailin renewal support includes instructions for submitting acceptable, current photo identification.
TIADA has already heard from dealers who feel caught off guard by the immediate nature of this clarification. Unlike changes that roll out gradually or include transition periods, this update took effect upon issuance, leaving no time for internal training, revised documentation workflows, or customer communication planning. As a result, staff members may encounter confusion in verifying the increasingly nuanced document requirements. Customers who previously relied on broader identification options may experience delays or denials, creating frustration on both sides of the counter. Given these concerns, TIADA is emphasizing the operational challenge these revisions pose. Dealers understand their role in maintaining accurate registration records, but abrupt procedural adjustments without adequate lead time inevitably strain frontend operations. The association is actively engaging with the agency to request additional guidance and clearer
To support members during this transition, TIADA recommends several immediate actions. First, dealers should update internal checklists and workflow documents to ensure they reflect the new identification requirements for both special registrations and standard renewals. Second, staff training should focus on the specific criteria attached to certain documents, especially foreign passports and REAL ID compliant identification cards. Third, dealers should examine their renewal processes closely and determine how they will integrate identity verification responsibilities when customers rely on the dealership to handle renewals. Proactive communication will also be important. Dealers may want to inform customers, particularly those who use temporary permits or who frequently register multiple vehicles, about the new documentation requirements. Setting expectations early may help reduce delays at the point of service. Finally, TIADA encourages members to document any recurring issues, unclear guidance, or patterns of rejected applications and share those observations with the association. This feedback will enable TIADA to continue advocating for smoother implementation and practical adjustments that better reflect the realities of dealership operations.
Continued Advocacy
TIADA will continue monitoring the situation closely and engaging with the agency on behalf of dealers. The association remains committed to ensuring that policy updates are workable, consistently applied, and implemented with adequate support for the businesses that keep Texas’s vehicle market moving.
feature Garage Insurance... Time Out for the Holidays
by Ann Mullen-Martin Founder & Consultant, Mullen Insurance Agency
Over the Holiday Season, the things most important, family, friends, good health, etc. take center stage. All of us here at Mullen Agency wish each of you:
Merry Christmas and a Prosperous New Year!
Of course, I must offer one bit of insurance advice: If you are planning any employee parties over the Holiday Season --- and alcohol will be served — be sure your garage policy form includes liquor liability. For the Garage Coverage Form- considered the ‘standard’ garage policy- you simply add a Broadened Coverage Endorsement not automatically included on that policy form.
If you have a Dealers Auto Policy Form, it includes all the standard garage protection and adds some important items needed by auto dealers. Among those items is liquor liability. This ‘bundled’ garage form has now been
available for the last several years and is becoming the go-to policy for most admitted market garage carriers and many of the non-admitted markets as well.
Host liquor liability offers financial protection in case of an alcohol-related incident at a company event, such as an employee holiday party. For example, if a garage employee has too much to drink at a company function and later causes a car accident, a resulting lawsuit against the business could be covered by this endorsement. Check with your agent to be sure you are protected.
We appreciate the opportunity to work with and for your industry.
feature How Has webDEALER Affected Your Operations and the Tax Office?
by Hon.John R. Ames, CTA, PCC Dallas County Tax Assessor-Collector
Dallas County is the 2nd largest county in Texas and the 9th largest county in the country. Each year, the Dallas County Tax Office registers over 2.2 million vehicles, approximately 10% of all the vehicles in the State of Texas. Additionally, they work with over 2,500 dealerships titling over 700,000 titles annually. John R. Ames has served as the Dallas County Tax Assessor/Collector since January 2009.
Does it feel like the entire world changed on July 1, 2025? If you’re a Texas dealer or a county tax office, IT DID! With the implementation of HB 718 and the mandatory use of webDEALER, there has been a shift on how dealerships conduct business with their County Tax Office.
The most common question we get at Dallas County is: “How do I get my white slip so I can get paid?” Cash flow is important in any business, but especially a small business like many independent dealers operating today. Once a dealer submits the transaction in the webDEALER system, the county reviews it for accuracy. The dealer can track that review in webDEALER. It is incumbent upon the dealer to watch the system daily to see when their transactions have been reviewed and are ready for payment. The final receipt, or white slip, is available to print as soon as the transaction is paid by the dealer and the county applies and approves it. This process can be quick or take a few days depending on the influx of webDEALER transactions that have
been submitted. Additionally, if the dealer is not watching the system and fails to make payment timely, the approval process is delayed. Constant monitoring will allow both the dealer and county to make the process smooth. In Dallas County, our goal is to review submitted transactions within 72 hours and apply payments within 48 hours of receipt. That process may take longer in other counties depending on the workload and payment methods.
The biggest delay in receiving the white slip is returned transactions. When a dealer submits transactions in webDEALER, the documents must be accurate or the transactions will be rejected, just like they used to be with dealer drop off and over the counter transactions. The top three reasons for rejections in Dallas County are 1) Incorrect vehicle/registration class; 2) Inventory in the wrong dealer ID; and 3) Not meeting webDEALER scanning requirements. Let’s break these down.
If the vehicle/registration class is entered incorrectly when the buyer plate is issued, webDEALER won’t
Local Chapters
TIADA has active local chapters in the following areas: https://www. txiada.org/local_chapters
CORPUS CHRISTI
G.R. Moore
The Car Shack
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
EL PASO
Cesar Stark
S & S Motors
Meeting – 3rd Friday (Monthly)
FORT WORTH
Jerry Smith
H J Smith Automobiles
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
HOUSTON
Chris Donnelly
Your Car Store
Meeting – 2nd Tuesday (Monthly)
SAN ANTONIO
Nory Pakravan
210 Auto Credit
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
accept the transaction because the class is wrong and we can’t push it through over the counter using RTS. A hard stop occurs stating the dealer entered a different class. The dealer must then void out the buyer’s plate and enter it correctly. Dealers may have multiple TxDMV issued IDs. It’s important that the dealer know which ID is being used in webDEALER , so the inventory from the TxDMV Inventory Management System (IMS) is assigned properly. If a dealer is unsure of the dealer ID they should use, they should reach out to their county tax office and confirm the dealer ID that is assigned in webDEALER. They can then make sure that the TxDMV IMS is issuing plates under the same ID. If not, they will need to contact the TxDMV at dealer_allocations@txdmv.gov to correct the IMS system ID. When plates are issued under one dealer ID and the dealer enters the transaction into webDEALER under a different dealer ID, they will get an error message that says the plate was issued by a different dealer. Dealers should consult the IMS guide (beginning on page 11) so they know how to transfer inventory from one ID to the other. This is an ongoing systematic issue that has been brought to the attention of the TxDMV.
Not meeting webDEALER scanning requirements is probably the most avoidable reason a transaction is rejected. Sometimes transactions
have crooked or blurry images or documents are missing
Sometimes dealers are scanning copies of documents. Sometimes (this is occurring more and more) dealers are taking pictures on their phone and uploading the picture. Crooked/blurry images and missing documents might be avoided with a quick glance at the attachment before submitting the transaction. This issue can be avoided if the dealers meet the requirements as outlined in the webDEALER user guide provided by the TxDMV.
It’s important for dealers to work directly with County Tax Offices on questions concerning where to pick up stickers, why a transaction was rejected or how to pay for transactions. These are items that are handled at the local office and not at TxDMV. Conversely, the County Tax Office cannot assist with questions regarding concerns related to dealer plate inventory or the TxDMV IMS. Dealers should continue to utilize the TxDMV HB718 portal and take advantage of the recorded webinars as well as the training provided. Many outstanding issues have a resolution outlined in the HB718 portal.
Each month we see more improvements with transactions as dealers, and county tax offices, work through processes and create efficiencies. Working together, Texas drivers will have accurate titles and be legal on our roads!
feature
Big Print, Small Print, Real Risk: Avoiding Advertising Violations in 2026 Expert guidance from the Texas Department of Motor Vehicles Enforcement Division
As dealers prepare for a new year of marketing and retail activity, advertising remains one of the most heavily scrutinized areas of compliance in Texas. The Texas Department of Motor Vehicles’ Enforcement Division continues to receive a high volume of complaints and inquiries related to dealer advertising — many of which can be avoided with clear messaging and consistent adherence to state rules.
During her recent presentation, Sharon Ruszczyk, Advertising Investigator with TxDMV, walked through key rules and practical reminders that every dealer should keep in mind when developing print, digital, broadcast, and on-lot marketing materials.
The Foundation of the Rules
Texas’ dealer advertising standards are rooted in Chapter 2301 of the Texas Occupations Code, which
prohibits false, deceptive, or misleading advertising in the sale or lease of motor vehicles. These rules are further detailed in Texas Administrative Code Title 43, Chapter 215, Subchapter F, which outlines specific guidance on accuracy, layout, terminology, pricing, and disclosures.
Dealers are encouraged to review the code directly as a point of reference and to ensure internal marketing teams or external advertising vendors are aligned with compliance expectations.
What Counts as Advertising
Any written, visual, or verbal communication used to solicit business is considered advertising. This includes:
Social media posts
Website listings
Email and text campaigns
Newspaper and magazine ads
Radio/TV spots
Lot signage, banners, and window posters
However, direct one-on-one communication with a prospective customer does not fall under advertising rules.
Words and Layout Matter
One of the most common compliance issues arises not from what is said — but from how it is presented. Ads should be:
Accurate
Clear and conspicuous
Easy to understand
Consistent in font size, color contrast, and placement
If the big print says one thing but the fine print contradicts it, the ad is considered misleading. Ruszczyk emphasized, “Big print giveth and little print taketh away.”
Phrases to Avoid
The following terms cannot be used:
“Guaranteed approval”
“We finance anyone”
“Write your own deal”
“No credit rejected”
“Credit problems? No problem!”
Claims about “free” items are also restricted. If the cost of the vehicle changes or if conditions aren’t clearly disclosed, dealerships must not advertise the offer as free.
Used Vehicle Advertising
When promoting used vehicles, the ads must clearly identify them as “used” or “pre-owned.”
Terms such as program car, factory repurchase, or special purchase should not be used.
Additionally, used vehicle discounts (e.g., WAS $8,800, NOW $8,300, or comparisons against Book values) cannot be advertised.
Dealer Advertising Compliance: QUICK CHECKLIST
Ad is clear, accurate, and easy to understand. No prohibited phrases (e.g., “Guaranteed Approval”).
Used vehicles are clearly labeled as “used.”
Advertised price includes dealer-installed options and prep fees.
No “was/now” or discount claims on used vehicles.
Images match the advertised vehicle.
Disclosures appear within one click or hover and are easy to find.
Offer terms apply equally to any retail customer.
Featured Price Requirements
If a dealer advertises a price, that price must:
Be available to any retail buyer
Include dealer-installed options and preparation fees
Exclude only TTL and legally allowed fees
There can be no conditions such as “with approved credit,” “with trade-in,” or “with dealer financing.”
Internet Disclosures
Disclosures may be shown through a hover or single click, but only if:
The ad clearly indicates where to click,
The disclosure appears immediately and legibly, and
It is placed close to the related claim.
Enforcement
All complaints are investigated.
First violations typically result in a cure letter — but repeated or serious violations may lead to:
Fines up to $10,000 per violation per day
Suspension or revocation of the dealer’s license
Final Reminder
Advertising is often the first impression customers have of a dealership. Clear, compliant messaging not only prevents regulatory issues — it helps build trust.
Dealers with questions or who want clarification should contact TxDMV Enforcement for guidance before launching new campaigns.
feature TownHall Recap: Highlights from the 2025 Big Texas Tour
by TIADA Staff
TIADA spent the fall traveling across the state to meet with independent dealers, listen to their concerns, and create opportunities for open dialogue with state and local officials. Branded as the Big Texas Tour, this series of regional town halls brought the association’s leadership, key policymakers, and the Texas Department of Motor Vehicles together with dealers in four distinct markets. Each stop offered a candid, boots-on-the-ground conversation about registration, enforcement, technology updates, and the issues that shape daily business operations.
The statewide participation was exceptional, thanks in large part to the involvement of the Texas Department of Motor Vehicles. Roland Luna, Director of the Enforcement Division, attended every town hall, playing an active role in answering questions and providing clarity on a wide range of regulatory topics. TIADA extends sincere appreciation to Roland and the TxDMV staff members who supported these events. Their willingness to engage directly with dealers made the tour both productive and meaningful and reinforced the association’s ongoing partnership with the agency.
El Paso: A Strong Start in the Borderland
The Big Texas Tour began in El Paso, where more than one hundred dealers gathered at Manheim El Paso for one of the strongest turnouts of the year. The energy in the room was immediately evident as members prepared for a wide-ranging discussion with local and state officials.
The stop featured several distinguished guests, including Representative Vincent Perez of the 77th House District; Cassandra Urrutia from Senator César Blanco’s office; and the Honorable Ruben Gonzalez, El Paso County Tax Assessor-Collector. Their participation underscored the region’s commitment to dealer issues and opened the door for constructive conversation about regional registration challenges and policy trends affecting the West Texas market.
TIADA thanks the El Paso sponsors whose support helped launch the tour on solid footing: Advantage Automotive Analytics, CNP Technologies, and Manheim El Paso.
EL PASO
Arlington: A Smaller Crowd, But High-Value Dialogue
The tour continued to Arlington for an evening program at Texas Live!. Dealers engaged in a robust discussion with both TIADA and TxDMV. The intimate setting created an opportunity for deeper, more detailed conversations, particularly around enforcement expectations and registration requirements.
The Honorable Rick Barnes, Tarrant County TAC, joined the meeting and shared valuable insights about countylevel operations and dealer interactions. Roland Luna again introduced members of the TxDMV team and helped guide the discussion toward practical solutions for the challenges dealers are facing statewide. Trevor Jennings was introduced as TIADA’s new Executive Director.
TIADA thanks the Arlington sponsors: Agora Data, AutoManager, CHAMP, and Tyler Technologies, whose support ensured the event remained an important stop for dealers in the Metroplex.
ABILENE
ARLINGTON
Abilene: A Lunchtime Roundtable with Local Leadership
Abilene delivered a close-knit, focused session hosted at Alliance Auto Auction Abilene. The midday format encouraged a conversational tone, allowing dealers to take a deeper dive into questions about titling, local procedures, and the broader regulatory environment.
The Honorable Kay Middleton, Taylor County Tax Assessor-Collector, attended the event and contributed helpful guidance regarding documentation processes and county-office coordination. TxDMV staff participated actively in the discussion, offering clarification on policy points and providing real-time responses to dealer questions.
TIADA thanks the Abilene sponsors: Alliance Auto Auction Abilene, AVP, CHAMP, and Tyler Technologies.
LUBBOCK
Lubbock: Closing the Tour on a High Note
The final stop of the tour took place at America’s Auto Auction Lone Star Lubbock, bringing together area dealers, state officials, and TIADA leadership for an in-depth discussion about ongoing rule changes and operational adjustments. The Honorable Ronnie Keister, Lubbock County Tax Assessor-Collector, participated in the town hall and fielded questions related to local processes and documentation challenges.
Matt Crow, representing Speaker Dustin Burrows’ office, also joined the event and offered legislative insight as dealers raised questions about upcoming sessions and policy priorities. Once again, Roland Luna provided a direct connection to TxDMV, introducing agency staff and walking the audience through key updates and enforcement considerations.
TIADA thanks the Lubbock sponsors: America’s Auto Auction Lone Star Lubbock, Credit Acceptance, and National Lenders.
A Statewide Effort to Strengthen Communication
Across all four stops, one consistent theme emerged: dealers value direct access to the officials and agency leaders who shape their regulatory environment. The Big Texas Tour succeeded because it created space for that dialogue. Questions were answered on the spot, concerns were acknowledged and addressed, and both TIADA and TxDMV heard firsthand where dealers are experiencing pressure points.
TIADA is grateful to every dealer who took time out of their day to participate, whether in a large room of more than one hundred attendees or in a smaller gathering that fostered longer, more detailed exchanges. Each stop provided unique insights, and taken together, they strengthened the association’s understanding of the issues most important to independent dealers today.
Above all, TIADA extends its thanks once again to the Texas Department of Motor Vehicles and to Roland Luna for their presence at every meeting. Their commitment to transparency and accessibility sets an important precedent for state–industry collaboration and reinforces the shared goal of supporting a healthy, compliant dealer community.
Finally, TIADA acknowledges and appreciates all sponsors across the four stops of the Big Texas Tour. Their support made this statewide outreach effort possible and ensured that each event delivered value to the dealers who attended.
The association looks forward to continuing these conversations in the months ahead and to building on the momentum created during this year’s tour.
Compliance tiada 2025 Dealer Proficiency Quiz (Answers)
(Questions found on pg. 23)
1. A. Metal plates include built-in security features that are difficult to counterfeit, reducing fraud, improving accountability, and restoring consumer confidence. (February 2025, “Heavy Metal: Texas Dealers Brace for the Shift to Permanent Plates”)
2. B. As of January 1, 2025, Texas no longer requires annual safety inspections for non-commercial vehicles under HB 3297. (January 2025, “A Dealer’s Complete Guide to Upcoming Inspection Changes in Texas”)
3. B. Dealers must notify the debtor within 15 days of discovering personal property and allow 31 days to claim it before disposing of it under escheat laws. (May 2025, “BHPH Compliance--Don’t Overlook Proper Handling of Personal Property in Repossessed Vehicles”)
4. B. Even though inspections ended, dealers remain legally responsible for the condition of the vehicles they sell, must perform internal safety checks, keep records, and disclose known defects. (January 2025, “A Dealer’s Complete Guide to Upcoming Inspection Changes in Texas”)
5. A. The shift to metal plates was driven by the need to curb widespread fraud, theft, and toll evasion by adopting a secure and traceable plate system. (February 2025, “Heavy
resource guide
The TIADA Website: www.txiada.org Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base.
Texas Comptroller of Public Accounts 800.252.1382 comptroller.texas.gov
NIADA 817.640.3838 niada.com
REPOSSESSIONS
American Recovery Association 972.755.4755 repo.org or contact TIADA state office
FORMS
Burrell Printing 512.990.1188 burrellprinting.com
Metal: Texas Dealers Brace for the Shift to Permanent Plates”)
6. C. The Dealer Temporary Plate replaces vehicle-specific and agent-specific temporary tags beginning July 1, 2025. (June 2025, “Texas Department of Motor Vehicles (TxDMV) Important Update for Dealers”)
7. B. webDEALER is the only authorized system for issuing and tracking metal plates; failure to use or update it can result in penalties and operational disruptions. (February 2025, “Heavy Metal: Texas Dealers Brace for the Shift to Permanent Plates”)
8. C. Texas law does not require prior notice of repossession. Cure letters are optional and are used voluntarily by some dealers to demonstrate good faith. (March 2025, “Some Repossession Basics”)
9. D. Dealers should verify DMS updates, review and update contracts, train staff, communicate with customers, and check white slips for accuracy during the transition. (January 2025, “A Dealer’s Complete Guide to Upcoming Inspection Changes in Texas”)
10. B. The 10-day notice applies to private sale; the 20-day notice applies to strict foreclosure, allowing the dealer to keep the vehicle as full payment if the debtor does not object. (March 2025, “Some Repossession Basics”)
Bonus Answers with Blog Sources
11. B. — June 2025, “Texas Dealers Win Big in 2025 Legislative Session.” HB 4134 authorizes convenience fees, capped and tied to actual expenses, and requires a fee-free payment option.
12. A. — March 19, 2025, “Important Information for Motor Vehicle Dealers Regarding…” Dealers must issue metal plates at the time of sale unless another plate type is warranted.
13. C. — November 20, 2025 – “TxDMV Rolls Out New ID Rules: Here’s What It Means for Your Dealership” The new TxDMV rules require applicants to present a valid, unexpired photo ID. Accepting an expired driver license violates these updated requirements.
14. C. — March 19, 2025 – “Important Information for Motor Vehicle Dealers Regarding…” Dealers must issue metal plates at the time of sale and record each plate assignment in webDEALER , since it is the only authorized system for issuing and tracking metal plates.
15. A. — November 20, 2025, “TxDMV Rolls Out New ID Rules.” Applicants must provide a valid, unexpired photo ID such as a driver license, qualifying passport, or Texas License to Carry.
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behind the wheel
Finishing Strong and Looking Ahead
As we wrap up 2025, I’ve been reflecting on what it means to serve this industry — not only as the interim Executive Director of TIADA, but as a dealer who has stood on the lot, managed the payroll, made the tough calls, and opened the doors every morning just like many of you. I’ve spent my entire career in this business, and I can tell you — it has never been simple. It takes grit. It takes practice. It takes commitment. And it takes heart.
For many of us, the dealership is more than a business. It’s how we provide for our families, employ our neighbors, and contribute to the communities we’re proud to be a part of. In my case, it’s where I raised my kids, built relationships, and learned the value of showing up every day.
by Eddie Hale Neighborhood Autos (Decatur)
TIADA INTERIM EXECUTIVE DIRECTOR
from many of you — in chapter meetings, town halls, conference rooms, and dealerships across the state. The conversations were real. Dealers spoke openly about compliance challenges, rising costs, staffing, training, and staying steady in a changing regulatory environment. And in every one of those conversations, I saw the same thing: determination.
Here’s to finishing the year strong — and to the work ahead.
Serving TIADA in this interim role has reminded me of something I have believed for a long time: this association exists because dealers believe in helping one another. We are competitors in the marketplace, yes — but we are allies in the work of keeping our industry strong, ethical, and respected.
This year, I had the privilege of sitting across the table
We are entering 2026 with momentum — and that is because of you. The people who don’t quit. The people who innovate. The people who shake hands, follow through, and do right by their customers and communities.
As I return my focus fully to my dealership and step out of this interim role, I do so with gratitude. Gratitude for the trust of this board, the support of our staff, and the strength and character of this dealer community. I’ll continue to stand with you — as a fellow dealer, as a member, and as someone who believes deeply in the work we do.
The road ahead is bright. And don’t worry — I am not going anywhere. I’ll still be on the lot, still working alongside you, still here in this great community of dealers who take pride in what we do, every day.
Thank you for trusting me to serve. This association is strong because we support one another.
9951 Anderson Mill Rd., Suite 101
Austin, TX 78750
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Thank you for your continued partnership. Here’s to new milestones and shared success in the year ahead.
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