VA Dealer Board Looks at Used Cars, Advertising and Transaction Recovery Fund
At its meeting last week at DMV headquarters in Richmond, the Virginia Motor Vehicle Dealer Board (MVDB) took up the following issues:
As Is Used Car Practices. The MVDB Dealer Practices Committee considered a number of matters involving activities by used car dealers, including the sale of used vehicles as is. The law requires that the buyers order for a vehicle sold as is contains a specific disclosure, which many dealers have included in the forms they use. However, the law also requires that the as is disclosure be signed by the customer. Consequently, dealers are cautioned that, when selling a used vehicle on an as is basis, staff take care to get the buyerês signed acknowledgement, which, when the disclosure is made on a buyers order, should be an additional signature proximate to the disclosure.
Advertising. The Dealer Advertising Committee discussed a dealer advertising program that is becoming more popular such that a customer who buys one car gets another car for a dollar. Generally, this involves purchasing one vehicle without the benefit of any discounts or manufacturerês incentives with the increased profit covering the cost of the second vehicle. MVDB committed to review such programs, especially the disclosures, to determine their legality.
The Transaction Recovery Fund Committee considered two matters, one of which involved a claim by a seller who consigned a vehicle to a dealer and was never paid. MVDB reaffirmed that only purchasers of a motor vehicle can recover from the fund.
On another matter, MVDB noted that the Virginia General Assembly passed a bill in the most recent session to significantly amend the Motor Vehicle Transaction Recovery Fund statute to specifically define the nature of what a customer may recover from the fund and to impose greater burdens on attorneys to justify their attorneysê fees. There was discussion concerning some objections to the bill by the Virginia used car dealers association, but attempts to convince MVDB to ask that the governor not sign the bill were rejected by the board, which continued its insistence that the transaction recovery fund enabling legislation be revised.
DMV Online Calculator. MVDB heard a presentation from the Department of Motor Vehicles about its test of an online calculator for DMV fees, including sales and use tax. The calculator will be available for dealers as well as the public so that they can fully understand the fees and taxes that will be imposed upon sale of a vehicle.
MVDB set its next meeting for May 14, 2007 at DMV headquarters in Richmond.
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