Texas Dealer Guide

Texas Dealer-to-Dealer Sale Paperwork: The Checklist

Q: Do I collect sales tax on a dealer-to-dealer sale in Texas?

Generally no. A sale to a licensed dealer for resale is not taxable when the buyer provides a Form 14-313 resale certificate showing its dealer license. Source: Texas Comptroller; 34 TAC 3.74 and 3.95.

Q: Does a dealer have to title a vehicle in its own name before reselling it?

No. TxDMV says a dealer is not required to title a vehicle in the dealership's name; the dealer takes assignment and reassigns it. Source: TxDMV Buying or Selling a Vehicle; 43 TAC 215.144(f).

Q: Does a wholesale sale need a Form 130-U?

A pure dealer-to-dealer transfer is a reassignment, not a title application. The 130-U is filed when the vehicle is titled to a retail purchaser. Confirm with your county tax office.

Q: How long must I keep dealer-to-dealer sale records?

At least 48 months, with the preceding 13 months at your licensed location. Source: 43 TAC 215.144.

Wholesale deals move fast and the paperwork is where they go wrong. Here’s what Texas dealers need when selling to another licensed dealer, with every rule linked to TxDMV or the Comptroller.

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Adam Al. Licensed Texas Dealer & Founder of FoxDMS · October 12, 2026 · Last reviewed October 11, 2026

Quick Answer

In a Texas dealer-to-dealer sale, the selling dealer reassigns the title (or uses Form VTR-41-A) to the buying dealer, and the buyer gives a Form 14-313 resale certificate showing its dealer license, so no motor vehicle tax is due. Record the odometer disclosure, sale date and price, and both dealers keep the records for 48 months.

Checklist

The Dealer-to-Dealer Paperwork Checklist

What should be in every wholesale deal jacket.

Title, properly reassigned: you must take assignment in your dealership’s name of the title or other ownership evidence for each vehicle you acquire, then reassign it to the buying dealer. (43 TAC §215.144 (f))
VTR-41-A when needed: if reassignment spaces are full, or under the control-number rule, use the Dealer’s Reassignment of Title. See our VTR-41-A guide.
Form 14-313 resale certificate: a seller may accept the Texas Motor Vehicle Sales Tax Resale Certificate only from a dealer, and it must show the buyer’s dealer license. (34 TAC §3.74; Comptroller motor vehicle tax forms)
Odometer disclosure: record the mileage on the reassignment unless the vehicle is exempt. (TxDMV Motor Vehicle Dealer Manual)
Bill of sale or purchase agreement: a document identifying the vehicle (VIN), both dealers, the date and the price.
Dealer license numbers: each dealer shows its current license number, and names must match the license. (TxDMV Motor Vehicle Dealer Manual)

Sales Tax

Do You Collect Sales Tax on a Dealer-to-Dealer Sale?

Usually no, if the paperwork is right.

Bottom line: a sale to a licensed dealer for resale is not taxable. An independent (non-franchised) dealer can acquire any brand of used vehicle for resale without owing motor vehicle tax. (Comptroller Motor Vehicle Tax Guide) Keep the 14-313 as proof. New vehicles on an MCO are different: only a dealer franchised for that make can buy them tax-free for resale.

Step by Step

How a Texas Wholesale Sale Works

A typical auction-to-dealer flow.

Take assignment when you buy

Make sure the title (or MCO/other evidence) is assigned to your dealership name. (43 TAC §215.144)

Agree the deal and get the 14-313

Confirm the buying dealer’s license and get a completed resale certificate.

Reassign to the buyer

Reassign on the title or a VTR-41-A, in ink, with odometer, date and both license numbers. Reassignments must be in consecutive order.

Transfer electronically if you can

TxDMV added eTITLE to webDEALER for secure electronic title transfers between dealers in the wholesale market. (TxDMV Dealers page)

File the deal

Keep copies of every document for at least 48 months. (43 TAC §215.144)

Avoid Problems

Common Dealer-to-Dealer Mistakes

These cause rejected titles and audit findings.

Selling dealer name doesn’t match the name on its license.
Skipping your own assignment and “floating” an open title.
No resale certificate on file, leaving you exposed on tax.
Missing odometer disclosure or unexplained corrections.
Losing the deal file before the 48-month retention period ends.

Save Time

Generate the Dealer-to-Dealer Packet From One Deal Record

In FoxDMS: enter the deal once and generate a dealer-to-dealer purchase agreement, VTR-41-A and Form 130-U where needed, with every document stored on the vehicle record. You still sign in ink where TxDMV requires.

Per-dealership plans: Starter $39/mo, Growth $79/mo, Command $199/mo (see pricing). FoxDMS works anywhere in the US in any web browser, including on your phone (no app to install), with Texas forms included. Questions? Email support@foxdms.com.

Common Questions

Dealer-to-Dealer Paperwork: FAQ

Do I collect sales tax on a dealer-to-dealer sale in Texas?

Generally no, with a valid Form 14-313 from the buying dealer. (Comptroller Motor Vehicle Tax Guide)

Does a dealer have to title a vehicle in its own name before reselling it?

No. The dealer takes assignment and reassigns it. (TxDMV Buying or Selling a Vehicle)

Does a wholesale sale need a Form 130-U?

Usually not; it’s a reassignment. The 130-U comes into play on the retail sale. Confirm with your county tax office.

How long must I keep dealer-to-dealer sale records?

48 months; the last 13 months on site. (43 TAC §215.144)

Disclaimer: This guide is general information, not legal or financial advice. Rules change; confirm with your county tax assessor-collector or TxDMV. Last reviewed October 11, 2026.

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