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«Vehicle Dealer & Manufacturer Resource Manual September 2012 We are committed to providing equal access to our services. If you need accommodation, ...»

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WASHINGTON STATE DEPARTMENT OF LICENSING

Vehicle Dealer &

Manufacturer Resource

Manual

September 2012

We are committed to providing equal access to our services.

If you need accommodation, please call (360) 664-6455 or TTY (360) 664-0116.

dol.wa.gov

CONTENTS

Section 1

References

Section 2

Glossary of Terms

Section 3

Vehicle Titling

Section 4 Where to find

• Forms

• Washington Laws and Rules

• Title & Registration Fees SECTION 1

REFERENCES

Dealer and Manufacturer Services Please contact Olympia Headquarters for assistance.

Olympia Headquarters PO Box 9039 Olympia, WA 98507-9039 (360) 664-6475 (360) 586-0479, fax dealers@dol.wa.gov License Auditors (360) 664-6466 (360) 586-6703, fax Compliance (360) 664-6464 (360) 586-6703, fax

GENERAL REFERENCE LIST – FEDERAL LAWS AND REGULATORY AGENCIES

Laws administered by the United States Department of Transportation:

Federal Odometer Disclosure Requirements, Federal Odometer Law (Truth in Mileage Act of

1986) Public Law 99-579/15 U.S.C. 1901 U.S. Department of Transportation National Highway Traffic Safety Administration (NHTSA) Room W55-301 1200 New Jersey Ave SE Washington D.C. 20590 (202) 366-4761

Laws administered by the Federal Trade Commission:

• Federal Warranty Law / Magnuson-Moss Warranty Act / 15 U.S.C. 2301

• Federal Trade Commission Used Car Rule (Buyer’s Guide)/16 CFR Part 455

• Regulation M. Consumer Leasing/12 CFR 213; effective April 1, 1981

• Regulation Z. Truth in Lending/12 CFR 226; effective April 7, 1981

• Federal Disclosure of Automobile Information/Manufacturer’s Suggested Retail Price (MSRP)/U.S.C. Chapter 28 Federal Trade Commission Headquarters 600 Pennsylvania Ave NW Washington D.C. 20580 (877) FTC-HELP URL: http://www.ftc.gov Federal Trade Commission 915 2nd Ave Seattle WA 98174 (206) 220-6363 URL: http://www.ftc.gov/ro/northwest.shtm SECTION 2

GLOSSARY OF TERMS

Accountability of Dealer for Employees RCW 46.70.027 A vehicle dealer is accountable for the dealer’s employees, sales personnel, and managerial personnel while in the performance of official duties.

Advertising RCW 46.70.180 WAC 308-66-152 It is important to become familiar with these regulations. Some of the more frequent

violations include failure to:

• disclose the name of the dealership

• use the word “dealer” or

• abbreviate “dlr” in the advertisement

• make complete disclosures when advertising credit sales or leases

• identify each vehicle in an advertisement by complete VIN You are responsible for ensuring your advertising is in compliance.

–  –  –

Bankruptcy RCW 46.70.183 Any dealer or manufacturer who has filed a petition in bankruptcy court shall, within 10 days, notify the department of the proceeding. Notification includes the identity and location of the court where the proceedings are pending.

Bonds RCW 46.70.070 Every vehicle dealer must file a surety bond with the department.

If a dealer has more than one license classification, he/she needs only to file a bond for the highest classification of license held.

Any retail purchaser who is damaged by a violation of the dealer regulations may file a claim against the bond in order to recover damages. A retail vehicle dealer may make a claim against a wholesale dealer bond or manufacturer bond.

–  –  –

The referenced statutes outline certain minimal braking requirements for vehicles licensed in this state. It is important to remember that it is illegal to sell any vehicle in this state unless the brakes are in good working order.

Bushing RCW 46.70.180 This section prohibits certain acts defined as “bushing” which include taking a written order

from a buyer, and:

• Failing to provide either an accepted agreement or returning any security to the purchaser within four consecutive days (excluding Saturdays, Sundays, and holidays)

• The buyer failed to disclose the trade-in vehicle certificate of ownership had been branded for any reason.

• Failing to comply with the obligation of any written warranty or guarantee given by the dealer requiring the furnishing of services or repairs within a reasonable time.

Once a dealer has delivered a vehicle to the customer and/or given the customer a copy of the purchase order for future delivery, (whether or not the order is signed by the dealer), these are the terms and conditions set forth and are not subject to renegotiation or change in any way after 4 calendar days.

Buyer’s Guide – Reference Federal Trade Commission (16 CFR Part 455) Used Car Buyers Guide Federal law requires that a Buyer’s Guide be displayed on all used motor vehicles offered for sale by a dealer, with the exception of motorcycles and motor vehicles over 8,500 gross vehicle weight. For more information, contact the Federal Trade Commission (877) 382-4357.





Buyer’s Agent RCW 46.70.011 RCW 46.70.180 A buyer’s agent works as a representative of the buyer. He/she does not take ownership interest in the vehicles. The compensation that the buyer’s agent receives is derived from the buyer and not from the sale of the car.

Consignments A consignment sale is an agreement to sell a motor vehicle on behalf of a legal and/or registered owner. In order to sell a vehicle on consignment a dealer must meet the conditions

as outlined in:

• RCW 46.70.028

• WAC 308-66-155 and

• WAC 308-66-110 (15), (16) and (17) Conversion Vans RCW 46.70.041 RCW 46.70.101 A Conversion van is a full-size cargo van that is sent to third-party companies to be outfitted with various luxuries for road trips and camping.

These are vans that have been modified by a third party whether it’s to cater for someone with a disability, for use as a motor home or other.

Any dealer who sells new conversion vans must:

• have a service agreement with the manufacturer if a warranty is offered and service work is required of the dealer

• meet all other requirements of a new vehicle dealer. (For example, if the van is titled as a Chevrolet, the dealer selling the van must have a service agreement with Chevrolet. If the van conversion company has altered the vehicle sufficiently to change the series and body type (on the title), the company can be issued a manufacturer’s license under which the retailing dealers can be franchised.) Curbstoning RCW 46.70.011 RCW 46.70.021 RCW 46.70.115 This term refers to unlicensed dealer activity.

Customer Deposits – (See TRUST ACCOUNTS) Dealer to Dealer Transfers (see wholesale vehicle dealers) When purchasing vehicles from another dealer, the dealer must retain the following

information:

1. dealer name

2. dealer business address

3. dealer license number

4. resale tax number Dealer / Manufacturer License Fees RCW 46.70.061

–  –  –

Dealer Licensing RCW 46.70.021 Any person engaged in dealer activity must have a current vehicle dealer license.

Dealer Plates RCW 46.70.090 WAC 308-66-160 WAC 308-66-165 Dealer plates are to be on used dealer inventory vehicles that are held and are available for sale.

Dealer plates may not be used on:

• service vehicles

• loaner vehicles, or

• vehicles owned by the owners of the business Employees must have identification cards in their possession when operating a vehicle that has vehicle dealer plates. A dated demonstration permit must be issued not to exceed 72 hours to a prospective customer if not accompanied by a representative of the dealership.

Dealer Temporary Permits - E-Permitting RCW 46.70.180 RCW 46.16A.300 WAC 308-56A-420 WAC 308-56A-425 Effective July 1, 2011, all dealer temporary permits are required to be generated and printed using the E-Permitting system. The only exception is if the dealer licenses the vehicle directly through a vehicle licensing office at the time of purchase.

Permits may be purchased at any of the county auditors’ or vehicle licensing subagent offices.

Permits may be used on sold vehicles that do not have current valid Washington license registration and on out-of-state licensed vehicles. (The out-of-state plates have to be removed from the vehicle when it is sold unless sold to a resident of the state issuing that plate.) The title must be applied for within 45 days of the date of sale. The permit will be valid for 45 days from the date of issuance.

Note: Temporary permits are not transferable from one dealer to another.

Details of Charges RCW 46.70.130 The dealer must provide the purchaser an itemization of the agreement signed by the seller to include, the finance charge, insurance costs, taxes, the dealer documentary fee (the customer can negotiate this fee) and any other charges which are to be paid by the purchaser.

Documentary Service Fee RCW 46.70.180 A dealer may charge a “documentary service fee”. The fee must be declared as “documentary service fee”. There must be language that the fee is negotiable and it must appear on the purchase order in the same size font as the rest of the contract.

Established Place of Business – (Retail Dealer) RCW 46.70.023 RCW 46.70.025 WAC 308-66-110 Requires minimum standards be met by dealers so that a business location can be certified by the department as an established place of business.

The minimum standards for a retail vehicle dealer are:

• Enclosed commercial building located in a commercially zoned area and attached to operating utilities.

• The building must be easily accessible and open to the public and representatives of the department at reasonable times.

• The required books and records must be kept at the place of business.

• There must be a sign permanently attached to the land or building which is clearly visible from the major avenue of traffic. The sign must state the name and the nature of the business.

• The dealer must maintain normal business hours at least five days a week from 10 a.m.

to 4 p.m.

• There must be a business telephone listing in the local directory.

• The dealer must provide evidence of leasehold, rental, or ownership of the property where the place of business is located.

• If more than one dealer is at one location, all records, office facilities, inventory, and signs must be separate.

• The place of business must comply with local zoning and other land use regulatory ordinances.

A retail dealer must be in compliance at all times with the established place of business requirements while licensed as a dealer.

Established Place of Business (Wholesale Dealer) RCW 46.70.023

The minimum standards for a wholesale vehicle dealer are:

• Enclosed commercial building located in a commercially zoned area and attached to utilities.

• All storage facilities for inventory shall be listed with the department and shall conform with all local zoning and other land use regulatory ordinances.

• Maintaining a telecommunication system.

• An exterior sign visible from the nearest major avenue of traffic which shall identify the business name and nature of the business.

• Records must be stored at the business location.

• If there is more than one dealer at the location, then all records, office facilities, and inventory, must be physically segregated and clearly identified.

• The dealer must provide evidence of leasehold, rental, or ownership of the property where the place of business is located.

• The place of business must comply with local zoning and other land use regulatory ordinances.

A wholesale dealer must be in compliance at all times with the established place of business requirements while licensed as a dealer.

Established Place of Business (Auction Company) RCW 46.70.023

The minimum standards for an auction company are:

• Maintaining office facilities within the state with a sign permanently attached to the land or building.

• Maintaining at the office, books records and files necessary to conduct business at the office.

• Storage facilities for inventory must be listed with the department and meet local zoning and land use ordinances.

• Maintaining a telecommunications system.

• Posting the vehicle dealer license at each auction where vehicles are offered.

• Providing the department with the address of any remote auction at least three (3) days before the auction.

• Auction companies which maintain their own vehicle inventory at the principal place of business must maintain all established place of business requirements unless a waiver is granted by the department.

Gray Market Vehicles RCW 46.32 RCW 46.37 These vehicles require inspections. Please see information about vehicle inspections & equipment in the above RCWs.

Internet Business WAC 308-66-140 (2)(d) WAC 308-66-250 Conducting business using an internet address may require the business obtain a subagency license under the internet name and/or address. A redirect requires a subagency license.

Listing Dealer RCW 46.70.029 WAC 308-66-157 A listing dealer is a used manufactured (mobile) home dealer who obtains listing agreements with sellers who will compensate the dealer for obtaining a willing purchaser for the seller’s manufactured (mobile) home. These dealers must meet all the requirements of a retail vehicle dealer.

A listing dealer has the following responsibilities:

• Negotiating the agreement between the seller and the purchaser.

• All written offers shall be presented to the seller for acceptance or refusal.



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