DMV-DIRECT Newsletter - September 2018

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

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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.