The bi-monthly meeting of the Virginia Motor Vehicle Dealer Board (VMDB) held September 9, 2003 was the first for new board members appointed by Governor Warner to replace previous members whose terms expired. New franchised dealer board members were: Jim Mitchell, Lynchburg; Pat Patrick, Richmond; Frank Pohanka, Fredericksburg; Larry Shelor, Christianburg; and Robert Woodall, Danville. The newly appointed independent dealers are E. Todd Hyman, Virginia Beach, and Hugh McCreight, Richmond.
Other notable MVDB actions included:
à Unlicensed Salespeople. The MVDB continued its informal policy of assessing a $100 per sale civil penalty by unlicensed salespersons by assessing an independent dealer a fine of $300 for three sales by an unlicensed salesperson. A busy salesperson who sells a number of vehicles can become a very expensive problem for a dealer if there is some problem in licensing. Dealers are reminded to have in place a system to ensure that every salesperson is properly licensed with the Motor Vehicle Dealer Board.
à Advertising. The Advertising Committee discussed new vehicle price advertising with the disclaimer that the advertised price includes all rebates and incentives. The committee noted that this is an insufficient disclosure. The advertised price, which includes any rebates or incentives, must specifically list, or be subject to a disclaimer that lists, each rebate or incentive applicable. This will allow consumers to understand whether they qualify for the incentives and comparison shop.
The committee also considered advertising of monthly payments in balloon arrangements. The committee expressed its concern that a balloon payment disclosure in a disclaimer might actually contradict the monthly payment information in the body of the ad. The committee expressed its opinion that, to be legal, the advertisement of a monthly payment on a balloon contract must contain a disclosure in the body of the advertisement of the final balloon payment amount due. Regular meetings of the MVDB and Committees will be November 10.
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