DMV-Direct Newsletter December 2017

D e c e m b e r | 1 7

Fo r you r dea l e r s h i p’s b i l l i ng c l e r k s , t i t l e p ro c e s s o r s and o f f i c e manage r

RULES FOR BUYING AND SELLING FLOOD-DAMAGED VEHICLES The 2017 hurricane season caused extensive damage to dealership facilities and vehicle inventories throughout the south and southeastern U.S. With hundreds of thousands of cars and trucks having likely sustained flood damage, high volumes of affected vehicles may soon be

10 TIPS TO IDENTIFY FLOOD-DAMAGED VEHICLES After one of the most destructive and prolonged hurricane seasons in recent memory, dealerships should be on high alert for vehicle-sellers attempting to conceal flood damage. To avoid unwittingly accepting one of these affected vehicles, DMV- DIRECT recommends the following ten steps before completing the purchase or trade: 1. Sit in the car with the doors and windows closed and see if you detect a moldy smell. 2. Check carpeting or upholstery for water stains in unusual places. 3. Be suspicious of an older vehicle with new or recently shampooed carpeting. 4. Check areas around light fixtures for moisture. 5. Watch out for rust or dirt in unusual places. 6. Scan both the interior and exterior for corrosion or waterlines. 7. Check engine compartment crevices for dirt or mud. 8. Perform a New York State safety inspection — it could reveal corroded wires.

making their way to the northeast. Accepting previously-damaged vehicles

DMV regulations require dealers to receive a salvage disclosure statement when accepting a salvage vehicle from either a retailer or a private owner. This statement must be on the title certificate or on formMV-103. DMV will not register the vehicle or issue a title if there is no salvage statement. For this reason, billers should be on the lookout for any titles branded “damaged”, “salvaged”, or “rebuilt”. Selling previously-damaged vehicles New York State’s Damage Disclosure Law requires dealers to inform any vehicle buyer if: - The vehicle was damaged before the first sale of the vehicle; - The title certificate has a brand that displays “REBUILT SALVAGE: NY”; or, - The previous owner supplied a salvage disclosure statement as described above. On the bill of sale, the dealer must confirm that the buyer was notified that the vehicle sustained prior damage. To best protect the dealership, ask the buyer to write his/her initials next to this confirmation.

9. Carefully examine the electrical system. 10. Check the undercarriage for excessive rust.

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