VA Dealer Board Takes Up Misuse of Temporary Tags
At its November 8 meeting, the Virginia Motor Vehicle Dealer Board (MVDB) received a report from the Assistant Commissioner of the Department of Motor Vehicles concerning temporary tags. The Assistant Commissioner noted that the DMV is trying to attack the problem of misuse of temporary tags by a few dealers who buy them in far greater numbers than is justified by the number of sales they have. The DMV has adopted a new policy that limits the number of temporary tags a dealer can buy to three times their prior yearês sales. There will be a procedure for exceptions to this limit for dealers who are new to the business or who have had a substantial increase in sales.
The Assistant Commissioner of the DMV also noted that there will be a procedure established in the DMV for issuance of more than one temporary tag. The DMV has announced the intention to crackdown on issuances of more than one temporary tag. Subsequent temporary tags will only be allowed if state law is carefully followed by an explainable failure to finalize the tag work (such as lack of a title from a lien payoff) and only if the application and tax and tag fees are filed with the DMV.
The WANADA Bulletin will report on any new temporary tag procedures when they are finalized.
The MVDB also addressed the following issues:
Customer Referral Payments. A dealer received a civil penalty for a referral program in which customers were paid by the dealership for referrals. Dealers are reminded that payments to anyone other than a licensed salesperson, either in cash or through some other form of consideration, are birddog fees and are illegal under Virginia law. A dealer who pays these benefits to anyone other than licensed salespeople of their dealership is subject to sanctions.
Independent Dealer-Operator Education. MVDB voted to support a requirement that applicants for an independent dealer-operatorês license meet mandatory training requirements. MVDB noted that this is not an issue affecting franchised dealers, since franchised dealers are subject to the requirements of franchisors that a dealer-operator have a minimum level of knowledge and experience in operation of a dealership. Franchised dealers are also subject to sanctions by franchisors in the event of serious problems in the dealership. It was noted, however, that independent dealer-operators do not operate under these requirements. MVDB felt it would be in the best interest of applicants for independent dealer-operator licenses to have more education so that they understand the laws that apply to them and the financial requirements. MVDB also spoke in favor of increasing the dealer bond to be posted by an individual dealer applicant to increase the personal responsibility of the dealer-operator.
The next date for Board and Committee meetings is January 10, 2005 at the Department of Motor Vehicles in Richmond, Virginia.
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