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HOT TOPICS
2017
MEMBERSHIP
DIRECTORY
159
FAILURE TO DISCLOSE PRIOR USE OF VEHICLES
COSTS DEALERS
New York Vehicle and Traffic Law and DMV Regulations require dealers to disclose the prior use of a vehicle in
certain circumstances. If a vehicle’s principal prior use was from one of the following categories:
taxi, rental car,
police car or driver education vehicle
, dealers must provide written disclosure. Principal prior use means more
than 50% of the total miles on the vehicle came from the prior use.
The
Prior Use
statement (language below) must be conspicuously printed, typed or stamped on the dealer’s
contract of sale and given to your buyer prior to the customer’s agreement to purchase the vehicle.
This disclosure is required in both retail and wholesale transactions. Failure to disclose prior use can result in
lawsuits for damages and the statute permits triple damages against the seller.
If you are selling used vehicles covered by this section, be sure that the buyer is aware of the primary prior use of
the vehicle before the sale is completed. Also, be sure to get your customer’s signature.
Prior Use Certification (required by Vehicle and
Traffic Law 417-a if the principal prior use of the
vehicle was as a police vehicle, taxicab, rental
vehicle or driver education vehicle). The principal
prior use of this vehicle was as: a police vehicle
____, a taxicab ____, a rental vehicle_____, a police
vehicle ____, or a driver education vehicle_____.
DMV Regulations
require this
language on
customer contracts
for such vehicles