2017 GNYADA Membership Directory

HOT TOPICS

DAMAGE DISCLOSURE REQUIREMENTS

When is Damage Disclosure Required? New York requires dealers to disclose damages to a new vehicle that occurred prior to sale and delivery to a consumer or another dealer when those damages exceed a threshold amount. In NY, if the retail cost of parts and labor to repair physical damage exceeds 5% of MSRP, dealers must give a written notice to the consumer. Manufacturers are Covered, too NY law also requires disclosure by manufacturers, distributors, and dealers who are transferring or selling a damaged vehicle to another dealer. A written notice of the repairs must be provided before the buyer pays for the vehicle. Exception No notice requirement applies to identical replacement of stolen or damaged accessories or their components used to make the repairs. Penalties

A consumer who does not receive the written notice is entitled to a full refund of the purchase price of the vehicle plus any trade-in allowance plus fees and charges (within four months of the purchase). The law includes a deduction for mileage using a complicated formula. A retail dealer who suffers a loss because they were not notified of prior damages by a manufacturer, distributor, or another retail dealer is entitled to reimbursement from the seller who failed to provide such notice. In addition, any dealer or his/her employee who violates this law is subject to a fine of up to $50 for the first offense and $250 for each subsequent offense. GNYADA recommends that you keep a signed copy of a Damage Disclosure Form in the deal jacket. See sample form at right.

MEMBERSHIP

DIRECTORY

2017

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