VA Dealer Board Takes up Record Keeping, Licensing Issues

VA Dealer Board Takes up Record Keeping, Licensing Issues

At its regular bimonthly meeting on November 5, 2007, the Virginia Motor Vehicle Dealer Board (MVDB) and its committees covered a number of important matters:

Unlicensed salespeople. The MVDB considered a matter involving an independent dealer with unlicensed salespeople. MVDB approved a civil penalty of $2,000. The dealer admitted that the dealership manager had failed to properly insist upon the licensing of the individuals as a result of confusion concerning the necessity to ascertain an actual license after receiving a certificate from the DMV.

Dealers are reminded that the certificate issued by the Department of Motor Vehicles when a salesperson passes the salesperson test is not a license. Once the certificate is received by the salesperson, MVDB must actually issue a license to the salesperson. It was noted during the discussion that leaving the licensing materials with the DMV to be forwarded to the Motor Vehicle Dealer Board for processing significantly slows down the process. For applicants without issues such as a conviction, the boardês average processing time is three business days. Dealers are reminded the most efficient method for processing a salesperson license is to directly submit the necessary paperwork to the MVDB.

Advertising. MVDBês advertising committee considered a report that a manufacturer has been encouraging at least one dealer to pay employees for sales and for leads. Dealers are reminded that Virginia law permits payments for sales or for leads only to licensed salespeople.

Dealer records. The executive director of MVDB noted that MVDBês policy providing flexibility for storage of dealer records has received a good reaction. The new policy is available for review at the website of the Motor Vehicle Dealer Board, www.mvdb.virginia.gov.

Education. Following the meeting, a special committee of MVDB met to consider continuing education requirements for independent dealer operators. The committee by consensus decided to move forward to further study such a program. The committee made clear that any continuing education obligations for dealer operators will be imposed only for independent dealer operators, not for franchised dealer operators. Franchised dealer operators are exempt from the initial training requirements imposed on independent dealer operators because of the rigorous qualifications imposed and substantial ongoing training opportunities made available by franchisors.