F&I Showroom Magazine

Subscribe | Digital Edition

MENU

Texas Web Site Sales Dropped By Ford

by Staff

February 25, 2002

1 min to read

The Texas Automobile Dealers Association (TADA) has prevailed in a two-year-long battle against Ford Web site sales of offlease vehicles in Houston. After being rebuffed by a Houston Federal District Court and the Fifth Circuit Court of Appeals in New Orleans, the automaker decided in January to suspend legal actions and pay a $300,000 fine levied by the Texas Motor Vehicle Board.

Although the automaker argued that all transactions were concluded at dealerships, lower courts agreed with the TADA position that Web site sales violated the Texas franchise law’s ban on factory retail sales.

Ford’s Texas Web site was introduced in 1999. It offered used vehicles at posted prices, which the Board found indicative of the automaker’s acting like a dealer without a license.

Ford initiated the legal action, but suffered a stinging defeat in Federal District Court. The company was harshly rebuked for competing with dealers in violation of the Texas law.

Used-vehicle Web site auctions in seven other states have not been challenged, according to Ford spokesman Chris Vineyard.

Topics:F&I

More F&I

Photo of notepad and pen next to computer keyboard on desktop

F&I•April 13, 2026

Control in Sales Is an Illusion

Some of it should be given to the customer, but that doesn’t mean the F&I office relinquishes the process. In fact, a different approach both builds trust and boosts sales.

Photo of external keyboard on office deak next to window

F&I•April 7, 2026

The Limited Warranty Game

Bringing it in-house benefits the dealership and its customers.

Woman in casual clothing sitting at a desk

F&I•by Rick McCormick•March 31, 2026

Curb The Confusion

Talk to F&I customers like you’d talk to a friend, without industry lingo or sales-like questions, and use hard proof to show, not tell, them about a need.

Photo of man's hand on laptop computer keyboard with blank screen

F&I•March 16, 2026

There Is Always one More Product

Helping F&I customers understand complementary offerings is likely to lead to more sales, based on the success of a high-performing practitioner of the philosophy.

REGISTER FOR EFI 2026

F&I•by Kate Spatafora•March 16, 2026

EFI Conference Extends Early Bird Discount as Room Block Nears Capacity

Ethical F&I Manager's Conference will take place at The Cosmopolitan Las Vegas on April 13–15, 2026.

F&I•by Staff•March 6, 2026

Explore the 12 Rules for an F&I Life at EFI

EFI 2026 will take place April 13–15 at The Cosmopolitan Las Vegas.

F&I•March 4, 2026

Creating Your Own Economy

In this video, Reese Dailey explains how effective follow-up drives better results across the dealership, including increased sales, higher F&I penetration, and stronger customer retention.

F&I•by Staff•March 2, 2026

Prove You Can Do F&I at EFI

‘So You Think You Can Do F&I’ is a live role-play contest taking place at the 2026 Ethical F&I Managers Conference.

Image of two human hands, one holding the word yes, the other the word no

F&I•by Hannah Mitchell•March 1, 2026

Expect Yes in the F&I Office

It may be human nature to back off when a customer seems to say no to a product or service. But experts say F&I managers should operate as though the answer will be the opposite.

F&I•by Lauren Lawrence•February 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.