Maryland MVA clarifies vehicle prior-use disclosure requirement of dealers

Maryland MVA clarifies vehicle prior-use disclosure requirement of dealers

The Motor Vehicle Administration of Maryland last week cleared up some ongoingconfusion over the manner in which dealers in the state are required to disclose prior-use of used vehicles they retail to consumers. In an official bulletin to Maryland dealers dated August 25, MVA said that dealers may make the mandatory written disclosure to used car buyers for prior use — such as service in a short term rental fleet — either on the buyers order or on a separate document.

Whats the big deal? Lawsuits against Maryland dealers, of the costly class action variety, have been brought by plaintiffs lawyers in recent times that have attempted to make the case, among other things, that the required prior-use disclosure had to appear on the dealer buyers order, which MVA has now set straight. For everyones ready reference, the MVA bulletin can be read here.

As can be seen, the MVA bulletin is helpful also because it includes the Code of Maryland Regulations which sets forth the various categories of prior-use, which dealers must disclose.WANADA dealers are urged to take care that vehicle sales managers and F&I directors see the MVA memo and understand its implications.