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CUSTOMER CANNOT TRADE-IN VEHICLE TITLED TO LEASING COMPANY WITHOUT NAME CORRECTION Situation: A customer executes a lease buy-out directly from a leasing company but the name on the title is not changed and now wants to trade-in the vehicle that remains in the leasing company’s name:
If a customer purchased their leased vehicle directly from a leasing company and wants to trade it in, the title must be in the customer’s name. The customer is not allowed to use the second reassignment on the back of the title to assign the vehicle without getting the title in their name first. DMV-DIRECT can assist in getting the title changed into the customer’s name. The following documents are required: • The title from the leasing company (& lien release if applicable); • A completed MV-82 in the customer’s name, signed by the customer; • A copy of the customer’s driver’s license; • A copy of the bill of sale from the leasing company to the customer; • A completed and signed DTF-803 (Claim for Sales and Use Tax Exemption - Title/Registration Motor Vehicle, Trailer, All-Terrain Vehicle (ATV), Vessel (Boat), or Snowmobile) from the customer; • If the customer did not pay sales tax to the leasing company, they will need a DTF-802 (Statement of
Transaction – Sale or Gift of Motor Vehicle, Trailer, All-Terrain Vehicle (ATV), Vessel (Boat), or Snowmobile) along with a check for the sales tax to be paid on their behalf. Submit these documents to DMV-DIRECT to process the title change to the customer’s name. For special handling and to have the new title in the customer’s name forwarded directly to the dealership, contact DMV-DIRECT.
18-10 Whitestone Expressway, Whitestone, NY 11357 • 718.747.0400
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REGISTERING AND TITLING A VEHICLE IN CONNECTICUT DMV-DIRECT is the exclusive out-of-state partner with Connecticut DMV and processes many types of transactions, including issuing passenger, commercial, or combo plates, transferring registrations, and perfecting liens. Recent changes are making it easier for New York dealers to get vehicles registered and titled for Connecticut customers.
New Forms of ID Acceptable Connecticut is now accepting a customer’s driver’s license from any state, a Connecticut Learner’s Permit or a Connecticut non-driver ID as permissible forms of identification to register a vehicle in the state. If the customer’s address on the driver’s license, learner’s permit, or Connecticut ID is different from where the customer plans to register and title the vehicle, the customer must complete and sign an Individual Change of Address/ Voter Registration Application (B-58) form (available from DMV-DIRECT). A customer who leases a vehicle in Connecticut can now keep their current license plates and transfer them to a new leased vehicle, even if they’re obtaining the car from a different leasing company. The customer can also keep their plates if they are going to purchase a car (including a lease buy-out).
No Emission Test Required In the past, used vehicles required an emission test before the vehicle could be registered in Connecticut. This is no longer the case. The dealership’s service technician can complete a VIN verification form and the vehicle can be registered and titled. Once the vehicle registration is completed, the customer has 30 days to get the emissions test done or they will face penalties and/or fines.
HELPFUL HINTS FOR AVOIDING DMV’S TOP 5 TRANSACTION REJECTIONS
Make sure: • The MV-50 & MV-82 are signed by all necessary parties. • The name on the insurance card matches the customer’s ID. • Fill in the inspection number on the MV-50 when billing out the vehicle before sending the paperwork to DMV. • The back of the MSO (that is swapped in from an out-of-state dealer) has the reassignment filled in correctly and that the mileage is not blank . Ensure the reassignment section is notarized, when necessary. • Both sides of the used car/trade titles are completed & all appropriate boxes are marked with either an X or a check mark. The mileage must be filled in and signed by the proper party in the proper spaces.
The number one violation for dealers is the 5 Day Rule. BREAKING THE 5 DAY RULE CAN BE COSTLY
It does not matter if you are selling a vehicle to a customer in New York or out-of-state, common excuses for violating the 5 Day Rule include: waiting for funding by the lending institution or leasing company, waiting for the customer’s personal check to clear, or waiting for the title for the customer’s trade-in. Paperwork must be submitted to DMV or your service provider within 5 calendar days of issuing the temporary registration. A delay in submitting paperwork is a violation and dealers run the risk of having a customer’s temp expire if the registration is not processed in a timely manner. Additional problems arise if there is a delay in issuing the title and securing a lien (if they have one) resulting in problems with the lender. Selling a vehicle without the required paperwork (titles, lien releases) in-house is a separate costly violation which WHAT NAME DO YOU USE ON THE MV-50? If you have Chrysler Jeep and Dodge, Ram, Fiat, and Mercedes Benz, each one of these lines will receive your MSO made out in your facility’s name according to the manufacturer. For example, “Lucky Chrysler Jeep and Dodge”, “Lucky Ram”, “Lucky Fiat”, and “Lucky Mercedes Benz”. However, DMV will only recognize your dealership according to its registered facility name. In this case, “Lucky Motors”. When you are completing the selling dealer’s section of your MV-50 you should be listing “Lucky Motors” as the selling dealer. You cannot only list “Lucky Fiat” or “Lucky Chrysler Jeep Dodge” in the seller’s section of your MV-50 if that is not the name DMV has on file as your registered facility name. You will need to have the manufacturer either include “Lucky Motors” as the dealership’s name on the MSO or have them include the dealership’s corporate name as well as your D/B/A (“Lucky Motors”).
may result in breaking the 5 Day Rule, piling up violations and potential fines. In addition, this may result in your dealership being removed from the plate issuance program. The 5 Day Rule regulations can be found in section 5 of
the Dealer Plate Issuance Manual (MV-461 (5/18)), section 5.1 (for NY registrations) and 5.2 (for the in-transit permit). **Reminder: Plates and ITP’s must be used in sequence. Any replacement set of plates you receive from Albany must be used before you open another box of plates.
This is also true if you have several stores in close proximity and you tend to share inventory. If anMSO is made out to one location and the vehicle is being sold by the other location, you must complete a dealer swap and MV-50 the vehicle to the location that is delivering it. This ensures the continuity of ownership is correct on all of the documentation.
An in-transit permit is a 3 part document issued when a car is moved from one state to another. Part one is required to be displayed in the vehicles’ rear window. Part two is given to the customer as their temporary registration when they leave the dealership. The third part is the tear strip located on the right side of the permit. This part is sent to the NYS DMV along with the following documents for processing: • MV-82ITP • insurance binder • copy of the customer’s driver’s license • copy of the completed and signed MV-50 • copy of the front and back of the MSO/title (and a copy of the lien release, if needed) • copy of the front and back of the completed in-transit permit.
What do you do, if you didn’t make a copy of the completed in-transit permit or accidently misplaced the tear strip (part 3)? Write a letter to DMV-DIRECT on dealership letterhead, explaining why part 3 is missing. Be sure to include the year, make, model, VIN, permit number, customer’s name & address, the date the permit was issued and the reason for not having a copy of the permit or the tear strip.
Maintain a sufficient supply of license plates, MV-50s and inspection stickers.
News is published by a subsidiary of GNYADA, a not-for-profit organization representing franchised new car dealers in the New York metropolitan area. We are located at 18-10 Whitestone Expressway, Whitestone, NY 11357