• Buy-here-pay-here dealerships: If a dealership sells vehicles and accepts the price over time, then the dealership must hold a Chapter 348 license. The requirement applies regardless of whether the dealership places liens on vehicles, charges any finance charge or interest, or labels its agreement as a “retail installment contract.”
• Dealerships that assign retail installment contracts: If a dealership enters retail installment contracts and then assigns the contracts, then the dealership must hold a Chapter 348 license.
• Finance companies and acceptance companies: If a business takes assignment or transfer of motor vehicle retail installment contracts, then the business must hold a Chapter 348 license.
• Related finance companies: If an owner sets up two businesses with one as a dealership (entering retail installment contracts) and the other as a related finance company (taking assignment of retail installment contracts), then each business must hold a separate license.
Source: https://occc.texas.gov/sites/default/files/2023-02/b23-1-mvsf-licensing-requirements.pdf