Tex.
Fin. Code Section 348.0091
Disclosure of Equity in Trade-in Motor Vehicle
(a)
A retail seller may not accept a trade-in motor vehicle for a motor vehicle sold under a retail installment contract unless the retail seller provides to the retail buyer, before the buyer signs the contract, a completed disclosure of trade-in equity form prescribed by this section.(b)
The finance commission shall by rule adopt a standard form for the disclosure of the equity in a retail buyer’s trade-in motor vehicle.(c)
The form adopted by the finance commission under Subsection (b), at a minimum, must:(1)
contain:(A)
the name of the retail buyer;(B)
the name, address, and telephone number of the retail seller;(C)
the make, model, year, and vehicle identification number of the trade-in motor vehicle;(D)
the date of the retail installment transaction;(E)
the amount offered by the retail seller to the retail buyer for the trade-in motor vehicle;(F)
the amount the retail buyer owes on the trade-in motor vehicle as of the date of the retail installment transaction;(G)
a statement indicating whether the retail buyer’s equity in the trade-in motor vehicle is positive or negative;(H)
a disclosure containing substantially similar words to the following: “If the EQUITY amount is NEGATIVE, the value the retail seller is offering you for your trade-in motor vehicle is less than what you currently owe on your trade-in. The amount of negative equity may be further reduced by the amount of any cash down payment and manufacturer’s rebate and may be included in the amount financed under your retail installment contract as an itemized charge.”;(I)
the cash price of the vehicle being purchased under the retail installment transaction; and(J)
the amount financed under the retail installment contract;(2)
include a space for the signature of both the retail seller and retail buyer and the printed name of the retail seller; and(3)
be signed and dated by the retail seller and retail buyer.(d)
The retail seller is solely responsible for the content and delivery of the disclosure form required by Subsection (a). An assignee of a retail installment contract may not be held responsible for a retail seller’s failure to comply with the requirements of this section.(e)
This section does not create a private right of action. The commissioner has exclusive jurisdiction to enforce this section.
Source:
Section 348.0091 — Disclosure of Equity in Trade-in Motor Vehicle, https://statutes.capitol.texas.gov/Docs/FI/htm/FI.348.htm#348.0091 (accessed Jun. 5, 2024).
