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Distributor: a person, other than a manufacturer, who distributes or sells new motor vehicles to a franchised dealer.
Manufacturers and distributors of new vehicles sold in Texas must be licensed by TxDMV, regardless of where the manufacturer or distributor is located.
Neither manufacturers nor distributors are allowed to sell new motor vehicles directly to Texas consumers, including municipalities. Only franchised dealers that are licensed for the line-make and type code of the vehicle are allowed to sell new motor vehicles to Texas consumers. If a new motor vehicle is sold through a bid process, the franchised dealer for the specific line-make and type code must be listed on the bid as the seller.
Prohibitions:
- Distributors cannot: operate or control a dealer or dealership; or act in the capacity of a dealer, directly or indirectly.
- See TEXAS OCCUPATIONS CODE §2301.476 for details and exceptions.