The Texas Department of Motor Vehicles is the main agency that regulates car dealerships in Texas, but it isn’t the only one. Depending on whether your problem involves title paperwork, financing, outright fraud, or a federal rule, you may need the Office of Consumer Credit Commissioner, the Texas Attorney General, or the Federal Trade Commission instead. Knowing which agency owns which issue keeps you from getting bounced between phone lines for weeks.
Texas Department of Motor Vehicles
Every dealer operating in Texas needs a license from the TxDMV. Franchised dealers selling new vehicles must hold both a general distinguishing number under the Transportation Code and a separate license under the Texas Occupations Code. Independent dealers selling used vehicles need a general distinguishing number to operate legally.1State of Texas. Texas Occupations Code Chapter 2301 – Sale or Lease of Motor Vehicles Because the TxDMV issues those licenses, its Enforcement Division has the authority to investigate complaints and discipline dealers who break the rules, up to revoking a license.
The most common complaints involve title paperwork. When you buy from a dealer, the dealer is responsible for filing the title application on your behalf. The general deadline is 30 calendar days from the date of sale.2Texas Department of Motor Vehicles. Buying or Selling a Vehicle If the dealer finances the purchase directly (a seller-financed sale), the deadline extends to 45 days after delivery.3Texas Department of Transportation. Chapter 6 – Titling Vehicles Active-duty military members, including National Guard and reserve personnel, get 60 calendar days from the date of purchase.4Texas Comptroller of Public Accounts. Military Personnel – Motor Vehicle Tax Guide If a dealer misses those deadlines or you never receive proof of title in your name, the TxDMV is the place to file.
Dealer advertising violations go to the same Enforcement Division. That covers misrepresenting a vehicle’s condition, advertising prices the dealer won’t honor, or failing to disclose material facts about a vehicle’s history.5Texas Department of Motor Vehicles. Statutes and Rules
The TxDMV also administers the Texas Lemon Law, which covers new vehicles with a substantial defect under the manufacturer’s written warranty. It applies to cars, trucks, motorcycles, motor homes, towable recreational vehicles, and neighborhood electric vehicles. Filing costs $35. The TxDMV first tries to help settle the dispute, and if that fails the case goes to a hearing where remedies can include a replacement vehicle or a refund. Used vehicles are not covered by the Lemon Law in the traditional sense, but Texas warranty law may still help if the defect started and was first reported to a dealer while the vehicle was under the manufacturer’s original warranty. An extended service contract you bought separately does not count for this purpose.6Texas Department of Motor Vehicles. Texas Lemon Law
Office of Consumer Credit Commissioner
When a dealership arranges your financing or offers you an installment sales contract, the Office of Consumer Credit Commissioner (OCCC) is the regulator. Any dealer handling retail installment contracts must hold a motor vehicle sales finance license under the Texas Finance Code.7Legal Information Institute. 7 Texas Admin Code 84.602 – Filing of New Application The OCCC’s authority is limited to the financial side of the deal.
Complaints there typically involve interest rate disputes, unexplained finance charges, contract errors, or problems with repossession procedures. The agency reviews contract details and assesses whether the dealer violated the Texas Finance Code.8Texas Office of Consumer Credit Commissioner. Complaint Resolution If you arranged your own financing through a bank or credit union, the OCCC generally has no role, because the dealer wasn’t the creditor. The OCCC also cannot give legal advice, represent you in court, or intervene if the matter is already in litigation. For money damages, you need a private attorney.
Texas Attorney General
The Texas Attorney General enforces the Deceptive Trade Practices Act (DTPA), which prohibits false, misleading, or deceptive business conduct. While the TxDMV handles dealer-specific licensing violations, the Attorney General’s office focuses on broader patterns of fraud affecting multiple consumers.9Office of the Attorney General. Consumer Rights Bait-and-switch advertising, odometer tampering, failure to disclose a salvage title, or concealed flood damage all fit here.
The DTPA also gives individual consumers a private right of action. If you sue a dealer and prove the dealer knowingly deceived you, a court can award up to three times your actual damages.9Office of the Attorney General. Consumer Rights The Attorney General’s office cannot represent you in a private lawsuit, but filing a complaint creates a record of the dealer’s conduct that may support enforcement action.
Federal Trade Commission
The FTC enforces several federal rules that apply to Texas dealerships. The most significant is the Used Motor Vehicle Trade Regulation Rule, usually called the Used Car Rule, which requires every dealer to display a Buyers Guide on the window of each used vehicle before offering it for sale. The guide must state whether the vehicle comes with a dealer warranty or is sold “as is,” and if a warranty is offered, it must describe what the dealer will cover.10eCFR. 16 CFR Part 455 – Used Motor Vehicle Trade Regulation Rule
The Buyers Guide carries real legal weight. Once you buy the vehicle, the information on the guide becomes part of your sales contract and overrides any contradictory language in the contract itself.11eCFR. 16 CFR 455.3 – Window Form If the guide says “as is” but the contract implies warranty coverage, “as is” controls. If the guide promises warranty coverage, the dealer cannot disclaim it in the fine print.
The FTC also enforces the Safeguards Rule, which requires dealerships to maintain a written information security program protecting the financial data you hand over when applying for credit. Dealers must encrypt customer information, use multifactor authentication, conduct regular security testing, and notify the FTC of data breaches within 30 days of discovery.12Federal Trade Commission. Automobile Dealers and the FTC’s Safeguards Rule Frequently Asked Questions If a dealership loses your Social Security number or financial records to a breach, that’s the federal rule to cite.
You may have heard about the CARS Rule (Combating Auto Retail Scams Rule), which the FTC finalized in December 2023 to combat bait-and-switch pricing and hidden junk fees.13Federal Trade Commission. FTC Announces CARS Rule to Fight Scams in Vehicle Shopping The U.S. Court of Appeals for the Fifth Circuit vacated it in January 2025, finding that the FTC failed to follow its own rulemaking procedures.14U.S. Court of Appeals for the Fifth Circuit. National Automobile Dealers Association v. FTC The CARS Rule is not in effect. The Used Car Rule, the Safeguards Rule, and the DTPA still apply.
Federal Warranty and Odometer Rules
Two additional federal laws apply regardless of state. The Magnuson-Moss Warranty Act prohibits dealers and manufacturers from conditioning warranty coverage on your use of a specific brand of parts or a specific repair shop. A dealer cannot void your warranty because you got an oil change at an independent mechanic or installed aftermarket parts, unless the dealer can prove the specific part or service actually caused the defect.15eCFR. 16 CFR 700.10 – Prohibited Tying
Federal odometer rules require that every time a vehicle changes hands, the seller must record the odometer reading on the title and certify whether it reflects actual mileage.16eCFR. 49 CFR Part 580 – Odometer Disclosure Requirements Dealers who tamper with odometers or report false mileage face federal fines and possible imprisonment. Report suspected odometer fraud to the Texas Attorney General, the National Highway Traffic Safety Administration, or both.
No Three-Day Cancellation on Car Sales
One of the most common misconceptions in car buying is that you have three days to cancel a purchase. The FTC’s Cooling-Off Rule, which does allow cancellation of certain door-to-door sales within three business days, specifically excludes vehicles bought at a dealer’s permanent place of business. It also excludes vehicles sold at temporary locations if the seller has at least one permanent business location.17Federal Trade Commission. Buyer’s Remorse: The FTC’s Cooling-Off Rule May Help Once you sign at the dealership, the deal is done unless the contract itself includes a return provision or Texas law gives you a specific remedy for your situation.
Matching Your Problem to the Right Agency
Title paperwork, registration, dealer licensing, advertising violations, and new-vehicle Lemon Law claims go to the Texas Department of Motor Vehicles. Interest rates, finance charges, unauthorized fees in an installment contract, or repossession by a dealer who financed the purchase go to the Office of Consumer Credit Commissioner.
Patterns of outright fraud (bait-and-switch, concealed vehicle history, odometer tampering) belong with the Texas Attorney General’s Office under the DTPA. Missing Buyers Guides and dealership data breaches are federal matters for the Federal Trade Commission. When your problem touches more than one of these categories, filing with more than one agency is fine, and often the smartest move.