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Leasing License

Leasing License

leasingA motor vehicle lease allows an entity to possess and use a motor vehicle in return for consideration and without changing ownership of the vehicle. The lessor is the actual title holder of the vehicle. A lease facilitator may act as a facilitator of the agreement. In Texas, lessors and lease facilitators are required to be licensed.

Lease Facilitator

The lease facilitator license allows a person to hold himself or herself out to be a leasing agent or leasing company. This person solicits someone to enter a contract of agreement to lease a vehicle. A lease facilitator by definition, is not the lessor or owner of a vehicle, but rather someone who puts the lessor, selling dealer and lessee (buyer) together.

Lessor License

The lessor license is required of a person who, under the terms of a lease agreement in excess of 180 days, gives another person the right to possess and use a motor vehicle that is titled in the name of the lessor.

A lessor licensee does not need to have a lease facilitator license to facilitate leases for themselves. The lessor license includes the ability to facilitate its own leases. However, if the lessor facilitates leases between lessees and other lessors, they would need a lease facilitator license in addition to their lessor license.

Note: Franchise dealers do not have to apply for a separate leasing license to be able to lease the vehicles they are licensed to sell.

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