private party sales

require the owners name on title to match the sellers name

ALWAYS check and verify the sellers ID when making

a private party purchase

the seller must ALWAYS provide a current smog certificate

if the seller is not on title

and there is no smog certificate with the car

BUYER BEWARE

WALK AWAY FROM THE DEAL

new california law ( Jan. 2009 )

imposes seizure and impound rules

on private party sales if the seller is not the owner on title

( You may sell up to 5 private party vehicles per year )

unlicensed car dealers, known as curbstoners

are in a grace period

dmv and local law enforcement have been advised

on this new law

POST ADVISORY from a law enforcement bulletin:

VEHICLE REMOVAL
Vehicle Code Section 22651
Chapter 736 / Assembly Bill 2042

SUMMARY: This new law authorizes a peace officer to
remove a vehicle when the driver is cited for a
violation of acting as a dealer,
manufacturer, or transporter without
the required license or temporary permit
issued by the Department of Motor Vehicles (DMV)
while the vehicle is being offered for sale.

HIGHLIGHTS:
Section 22651 VC was amended
to allow a peace officer
to remove a vehicle after issuing a citation for a
violation of Section 11700 VC,
if the vehicle is being offered for sale.

WHAT THIS BILL MEANS TO LAW ENFORCEMENT:
This new law authorizes a peace officer to remove
a vehicle upon issuing a citation to an individual
who is conducting business as a vehicle dealer for profit
without having a valid license or permit from the DMV
if that vehicle is being offered for sale.

The purpose of this bill is to deter persons from
fraudulently acting as a car dealer
without the appropriate license.
Unlicensed dealers create potential harm for buyers
who purchase vehicles without the protection against
unpaid back fees, unpaid parking tickets,
lack of appropriate smog certificates,
or who unsuspectingly
purchase vehicles that were previously stolen or salvaged.

……………………………………………………..

unlicensed car dealers

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800-901-5950
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CAR DEALER CLASS HOT TOPICS
TriStar Motors LLC + Car Dealer Education + DMV Service Providers
http://www.gotplates.com

We provide the best car dealer education in all of California.
Our in-person classes are offered in 25 cities and we conduct more classes than any other dealer education provider.
At anytime, if you have questions or need help in solving a problem you may visit our car dealer blog:
http://www.autogodfather.com

Charlotte will also respond to questions at 800..901..5950.

During our in-person training session there is always discussion between the dealer pre – licensing applicants and the course instructor.
Many of the dealer pre – licensing applicants have auto industry experience and bring to the discussion a wealth of experience and problem solving ability. This creativity is encouraged and not available in our online pre – licensing tutorial training sessions.

The online pre – licensing tutorial training session allows the student to prepare themselves for the in-person training and bring relevant questions to class. The online pre – licensing tutorial training session along with pre-payment ALSO brings a discount of $ 100.
CA DMV requires a six hour in-person course for pre – licensing.
Private Car Dealer education classes are available and great for 1-on-1 training. To signup for our private car dealer class:
http://www.gotplates.com/signupformnd300.php?type=New%20Dealer%20Licensing%20Class&x_amount=300.00

Car Dealer Education Discussion Points

Remember, character is doing the right thing, when no one is looking.
There are almost 15,000 licensed dealers and over 100,000 licensed salespersons in California. The DMV, CHP and Board of Equalization have less than 800 people monitoring the automotive sales industry.
Happy customers make for good business. If you are diligent in responding to customer complaints, pay your sales tax and registration fees on time and NEVER write a bad check you will sail through this car dealer business.
If you need to file a complaint with the dmv against any dealer:
http://www.dmv.ca.gov/forms/inv/inv172.pdf

If you need to get a dealers attention, file on his bond.
In the acquisition process many dealers have disputes over non-disclosed items. All auctions must be licensed dealers as of Jan. 01, 2001. All vehicles must meet the minimum safety standard ( Division 12 ) or be declared sub-standard in writing.
If you need the assistance of a good dmv attorney visit:
http://www.civilizedlaw.com

Remember, most enforcement action is the result of salesperson error.
In the sales process, the dealer is responsible for all claims made by their sales people. Maintaining strict control of all ROS forms and allowing time for adequate document review prior to each sale is critical.
If you need to train your salespeople, free online training at:
http://www.licensedsalesperson.com

Paying of a finders fee is strictly prohibited.
The only finders fee legally allowed in the auto sales industry is to licensed auto-brokers. Any dealer may become a licensed auto-broker, the first year endorsement cost is $ 50. Any licensed salesperson may collect a broker fee, when added to an existing auto-broker’s license. For more information from the dmv regarding autobrokers:
http://www.dmv.ca.gov/vehindustry/ol/autobrkr_end.htm

Consignments require a retail license with agreement & accounting.
A retail dealer may accept any vehicle on consignment. A wholesale dealer may not accept consignment from a private party. An accounting and payment must be made in all cases within 20 days of the sale date. Dealers may NEVER consign vehicles to each other. For more information from the dmv regarding consignments:
http://www.dmv.ca.gov/pubs/reg_hdbk_pdf/ch20.pdf

Offsite sales are strictly prohibited.
A retail dealer is only allowed to sell as his licensed location. This rule insures the proper distribution of sales taxes collected and that required disclosure has been made to the customer with properly posted signage ( provided for free to each car dealer student ).
If you need retail sales forms we suggest:
http://www.jodyforster.com

Sales licenses must be posted & endorsed by a dealer.
A salesperson may only post his license at one dealership. The DMV must be notified within 10 days of hiring or firing. We suggest the salesperson maintain a color copy while the original is posted at the dealership location. For more dmv licensed salesperson information:
http://www.dmv.ca.gov/vehindustry/ol/ol_handbooks/ol303.pdf

Spanish copy provisions cannot be waived.
The DMV requires a spanish copy of the sales contract, required disclosures and buyers guide for all buyers with Spanish surname. The providing of a translator does not relieve this burden from the dealer. For dmv spanish copy forms:
http://www.jodyforster.com

DMV fees can be estimated for retail customers.
The DMV allows the retail dealer to estimate fees and make refund upon completion of the registration application. The formula for 12 months of registration fees is: ( 2.2% + $ 60.) X .70
The DMV hotline number is 800..777..0133
Dealers are never allowed to charge back fees to a customer. Buyers fees for registration begin of the date of sale only. For dmv registration requirements:
http://www.dmv.ca.gov/pubs/reg_hdbk_pdf/toc.htm

Retail Sales are like a light switch, either ON or OFF.
If the sale is completed, the switch is ON, keep it all. If the sale is not completed, the switch is OFF, and all funds and the trade-in, if any, must be returned. For dmv refund information:
http://www.dmv.ca.gov/pubs/reg_hdbk_pdf/ch24.pdf

Deposits are fully refundable & cannot be waived.
Any deposit taken to hold a vehicle for retail sale and/or accessories is fully refundable if the sale is not completed. Failure to refund a deposit will get immediate attention from the DMV. For dmv deposit information:
http://www.dmv.ca.gov/pubs/vctop/d05/vc11737.htm

The maximum charge for documents is $ 55.
The charge for documents is optional and is NOT a government fee. The fee charged to all customers must be the same across the board. Any discrepancy would cause a refund to overcharged customers by the DMV. The fee must be disclosed and is taxable labor. For more dmv information regarding the dealer document fee:
http://www.dmv.ca.gov/pubs/vctop/d05/vc11713_1.htm

The maximum charge for smog inspection is $ 50.
The charge for smog inspection is optional and is NOT a government fee. The fee charged to all customers must be the same across the board. Any discrepancy would cause a refund to overcharged customers by the DMV. The fee must be disclosed and is taxable labor. A non-taxable fee of $ 8.25 is also allowed for the smog certificate fee. For more dmv information regarding the smog inspection fee:
http://www.dmv.ca.gov/pubs/vctop/d05/vc11713_1.htm

A dealer may charge interest of choice, with no limit.
Vehicle dealers are exempt from the usury restrictions of banks and finance customers, provided they disclose this fact and place themselves as lienholders on title. A dealer may repossess without notice upon default. Vehicle dealers are exempt from the 15 day notice requirement and may repossess at will, following the customary 5 day grace period, granted on every contract. For ca attorney general usury guidelines:
http://ag.ca.gov/consumers/general/usury.php

An open DO bill is a potential deal breaker.
Vehicle dealers using DO bills must provide documentation of completion to seal the deal and make the contract enforceable. An expiration date on the DO bill is useless. For do bills and dealer forms:
http://www.jodyforster.com

The buyers county of residence sets the sales tax rate.
The location of your dealership does not determine the rate of sales tax. Exempt transactions, dealer to dealer, out of state, out of country require exact paperwork to maintain the sales tax exemption. For current board of equalization sales tax rates:
http://www.boe.ca.gov/sutax/pam71.htm

Personal use requires a monthly use tax.
Any use of the dealer plate for personal use is taxable. The purchase price divided by 40 sets the taxable monthly base for dealers. The purchase price divided by 60 sets the taxable monthly base for salespersons renting a dealer vehicle. The taxable monthly base is then multiplied by the sales tax rate at the dealer location to determine the use tax due.Personal use is reported to the Board of Equalization. There is no requirement to report personal use to the DMV. The personal use of the dealer plate is reported on Line 2 of the sales tax report form sent to the Board of Equalization. For use tax rules from the board of equalization:
http://www.boe.ca.gov/pdf/pub110.pdf

Blank DMV registration & ROS forms can be ordered by mail.
The form office at DMV provides dealers with blank forms at no charge. A request on the dealer letterhead to the forms office will provide you all the forms you may need. Dealers may post flashers on sold vehicles. When a dealer posts a temporary operating permit on a vehicle the dealer may post flashers, license plate covers, over the existing plates, with instructions for removal upon the buyer receiving documents and registration stickers from the DMV. For dmv bulk forms ordering information:
http://www.dmv.ca.gov/pubs/brochures/fast_facts/ffdmv1.htm

Unpaid DMV administrative service fees causes loss of license.
When the DMV accesses an ASF upon a dealer, these fees must be paid immediately, even if the ASF is under protest. Failure to pay an ASF will result in bond activation and failure to pay the bond company will result in license termination. For dmv ASF information:
http://www.dmv.ca.gov/pubs/reg_hdbk_pdf/ch19.pdf

A retail dealer may sell to an unlicensed buyer.
The DMV has no requirement for any buyer to be a licensed driver. The RED section of the 553 sales contract requires the buyer to sign as to an understanding of this provision. A finance company may require a drivers license and insurance prior to release of a vehicle to a buyer, but, this is not state law.Every dealer shall obtain photo ID of the buyer.
The retail dealer must offer a cancellation option on all used vehicles offered for sale after july 1, 2006. For more car buyer bill of rights information:
http://www.carbuyerbillofrights.com
http://www.dmv.ca.gov/pubs/brochures/fast_facts/ffvr35.htm

The retail dealer must abide by new federal red flag rules on all vehicle sales where credit is offered or assistance provided. For free red flag rules tutorial training and assistance:
http://www.redflagclass.com
http://www.rexhead.net
For our $ 500. red flag program for licensed dealers:
http://www.gotplates.com/redflagform.php

Every out of state sale can be tax exempt.
Delivery is the condition which determines if taxes must be posted at the time of sale. If the out of state buyer is using a licensed transporter to have the vehicle delivered, the bill of lading exempts the collection of sales tax. If you, your staff or the buyer takes delivery, a notarized statement at delivery to an out of state location allows refund of sales tax posted at sale. For dmv out of state tax exempt regulations:
http://www.dmv.ca.gov/pubs/reg_hdbk_pdf/ch07.pdf

Division 12 is a federal law and cannot be waived at retail.
Division 12 is the minimum safety standard for all motor vehicles sold at retail by licensed dealers. The vehicle must meet these requirements or it cannot be sold. In wholesale transactions, the vehicle may be sold to another dealer with written disclosure. For dmv minimum safety standards:
http://www.dmv.ca.gov/pubs/vctop/d12/vc24007.htm

A voluntary repossession does not require a certificate.
If the customer is willing to sign the title on line 1a and return a vehicle the certificate of repossession is not necessary. A voluntary repossession in this manner is handled as a buyback. For dmv reposession form requirements:
http://www.dmv.ca.gov/forms/reg/reg119.pdf

Dealer smog certificates are good for two years.
When a dealer obtains a smog, required to offer the vehicle for retail sale within California, it has a useful life of two years. A dealer who obtains a vehicle with an unused smog is not required to re-smog the vehicle prior to sale. For dmv dealer smog rules:
http://www.dmv.ca.gov/pubs/reg_hdbk_pdf/ch21.pdf

Division 12 is an implied warranty.
The buyers guide has a provision for ” AS-IS, No Warranty ” The dealer should remember it really means, as-is, no warranty, except Division 12, the minimum safety standard. for the FTC sample federal buyers guide:
http://www.ftc.gov/bcp/edu/pubs/business/autos/bus13.pdf

Dealers may never post a for sale sign on the street.
All vehicles operated on the highway, or parked on the highway must never have a for sale sign posted on them.

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charlotte
800-901-5950

car dealer license training + we make it simple for you

dealer plate use from the california code of regulations

BARCLAYS OFFICIAL CALIFORNIA CODE OF REGULATIONS
TITLE 13. MOTOR VEHICLES
DIVISION 1. DEPARTMENT OF MOTOR VEHICLES
CHAPTER 1. DEPARTMENT OF MOTOR VEHICLES
ARTICLE 3.3. SPECIAL PLATES

This database is current through 9/25/09 Register 2009, No. 39

§ 201.00. Use of Special Plates Issued to a Dealer, Manufacturer, Remanufacturer, or Distributor.

(a) Special plates referenced in this section may only be used on vehicles that a dealer, manufacturer, remanufacturer, or distributor owns or lawfully possesses.

(b) The following individuals may operate a vehicle with special plates for any purpose:

(1) An individual who is the sole owner, a general partner, a manager of a limited liability company, or a corporate officer or director of a dealer, manufacturer, remanufacturer, or distributor, provided that individual is actively engaged in the management and control of the business operations of the dealer, manufacturer, remanufacturer, or distributor;

(2) A general manager, or business manager, or sales manager who is actively engaged in the management and control of the business operations of the dealer, manufacturer, remanufacturer, or distributor when no other individual meets the criteria in (1) above;

(3) An individual employed by a manufacturer or distributor and licensed as a representative.

(c) Any licensed driver may operate a vehicle with special plates for any purpose if an individual identified in section (b) is also in the vehicle.

(1) An unaccompanied licensed driver, who regularly resides in the immediate household of an individual identified in section (b), may operate a vehicle with special plates solely to pick up or drop off that individual.

(d) A licensed driver who is an employee of a dealer, manufacturer, remanufacturer or distributor may drive a vehicle with special plates when that employee is acting within the course and scope of his or her employment.

(e) Any licensed driver may operate a vehicle with dealer, manufacturer, remanufacturer, or distributor special plates for special event purposes if the operator carries a letter of authorization from the licensee identifying the vehicle, duration, and location of operation, and person(s) authorized to operate the vehicle.

(f) Any licensed driver, who is a prospective buyer or lessee, may test drive a vehicle with special plates for up to seven days.

(1) A salesperson is not required to be present.

(2) If a salesperson is not present, the operator must carry a letter of authorization from the licensee identifying the vehicle, duration, and person(s) authorized to operate the vehicle.

(g) Employees of a commercial vehicle dealer, manufacturer, remanufacturer, or distributor who must operate a commercial vehicle in the course of their employment, may take a commercial drive test in a commercial vehicle displaying dealer, manufacturer, remanufacturer, or distributor special plates.

(h) A trailer, displaying special plates, may be towed by a vehicle with Vehicle Code authority to operate on the highways.

(i) Any use of special plates issued to a dealer, manufacturer, remanufacturer, or distributor except as specified is prohibited.

Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11714, 11715 and 11716, Vehicle Code.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

To subscribe to the e-mail alert service logon to www.emailalert.dmv.ca.gov/subscriptions.asp.

This page contains detailed instructions on how to subscribe.
The Industry Tools Home Page located at

http://www.dmv.ca.gov/vr/dealer_regservice.htm

provides convenient access to information and links that are pertinent to the vehicle registration industry.

++++++++++++++++++++++++++++++++

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Auto Dealer Fraud
Did you know Auto Dealer Fraud is ranked as the number one consumer complaint throughout the nation? Dishonest car dealers are deceitfully swindling average consumers of thousands of dollars. You may be a victim and not know it. For an average consumer it is often difficult to determine whether or not they have been victimized. Since there are so many forms of Dealer Fraud, an average person can easily be defrauded. Auto Dealer Fraud categories include: misrepresentation of title, false advertisement, misrepresentation of vehicle history, financing fraud, packing payments, negative/trade-in equity, contract confusion, and selling prior rental, wrecked, or marked vehicles without disclosure or as new vehicles.

Contract Confusions
Contract fraud is perhaps the most discrete form of auto fraud. Since an average consumer is unaware of the many deceptive tactics that dealers use, they could be bound into paying hundreds of dollars. An average consumer is manipulated through various tricks, including rewriting/backdating contracts; signing more than “one” document in an attempt to charge a higher down payment, higher APR (Annual Percentage Rate), etc.; forging customers’ signatures; failing to provide translations of the completed lease or purchase contract in the applicable language; packing the contract with add-ons such as a service contract, warranty options, and accessories including alarms, GAP insurance, paint/fabric protection, window etching or low jack, items the customers don’t need.

Rewritten Contracts/Backdating: This occurs when a customer does not qualify for financing under initial contract terms. Therefore, the customer may have to consent to increase in down payment, higher APR, etc. in order to qualify for a loan. The dealership deceitfully has the customer sign a second contract with different terms and backdates the second contract with the date of the initial contract, thereby, charging interest for a time period in which the contract is not yet in effect. Not only is the act of backdating illegal, it is also a violation of the Automobile Sales Finance Act (ASFA), which requires that all parties sign one document.

Financing Fraud
Consumers are routinely billed hundreds and sometimes thousands of dollars by fraudulent car dealers. These schemes are designed to extort the highest possible profit from each sale. Dealers use many tactics, including negative equity/trade-ins which a transaction where the consumer is falsely led to believe that the dealership is valuing the trade-in vehicle at the same amount as what is owed. However, in reality the actual cash value of the vehicle in trade-in is less than the amount owed. This difference is added to the cash price of the new vehicle and as a result consumers ends up paying more in taxes and registration. The consumer is also duped when they are told they do not qualify for a loan under the original contract terms and therefore must pay a higher down payment or APR. Often customers end up paying for add-ons (such as alarms, service contracts, GAP insurance, paint/fabric protection, window etching, lo-jack, etc.) that they don’t necessarily need.

Used Car Fraud
Used Car Fraud occurs when the seller fails to disclose prior vehicle history (such as prior accidents, or rentals, etc); misrepresents title (often by selling a “salvage” title); or odometer fraud, where an odometer is illegally rolled back, replaced, or started over.

Negotiating in a Foreign language
California law provides that if a customer negotiates a lease/purchase of a vehicle primarily in Spanish, Chinese, Korean, Tagalog or Vietnamese, the dealer must give consumer a translation of the final contract in the applicable language before the contract is signed.

Odometer Fraud
Odometer fraud is the most prevalent form of auto fraud, resulting in costs of thousands of dollars. Odometer fraud occurs when illegal changes are made to the mileage shown on a used vehicle’s title and odometer. Examples of odometer fraud include roll back, replacement, or having an odometer rolled through all digits and started over.

http://www.carlawyer.com/whatwedo.htm

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Douglas man arrested,

charged with acting as

car dealer without license

( CURBSTONER IN CAR DEALER LICENSE SLANG )

November 18, 2009

A 54-year-old Douglas County man was arrested Wednesday on a warrant charging him with selling cars with bogus odometer readings and acting as a car dealer without a license.

Nevada Department of Motor Vehicle’s Compliance Enforcement Division investigators said they had received several complaints alleging William Wilkins was selling cars in which odometer readings were not accurate, and that he was not a licensed car dealer.

Investigators worked with the Douglas County District Attorney’s Office which resulted in Wilkins being charged in a warrant with six counts of obtaining money under false pretenses, one count of concealment of a salvage brand on a title and one count of being an ex-felon in possession of a firearm.

No further details were known about the allegations, or the nature of how the cars were being sold.

++++++++++++++++++++++++++++++++++++++++++++++++

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Posted: November 19th, 2009
Categories: car dealer license training tips, car dealer watch list, dealer license training, dmv certified car dealer education for pre-licensing car dealer class, identity theft account takeover and the red flag rules, private automated dealer education, red flag rules are not rocket science, rex reveals automated dmv dealer license checkpoint, rex reveals dealer plate rules, rex the automated man gives amazing red flag service
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