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.
18-10 Whitestone Expressway, Whitestone, NY 11357 • 718.747.0400
D e c e m b e r | 1 7
A RUNDOWN OF RARE (BUT TRANSFERABLE) VEHICLE REGISTRATION TYPES
DMV-DIRECT has received a high number of calls about unfamiliar vehicle registration types and whether those plates can be transferred. Certain plate types, such as press plates or judicial plates, can only be transfered by specific offices. Being familiar with the types that are transferable, either by DMV-DIRECT or another office, can help a dealership eliminate confusion and save time. The table below lists registration types that, while uncommon, are all transferable to other vehicles.
Transfers of Foreign Consul/Diplomat plates (Class Code: FCD) must be handled by the Office of Foreign Missions. The New York Regional Office is located at: 866 UN Plaza, Suite 2665 New York, NY 10017. Phone number: 646.282.2825
ORDER INSPECTION STICKERS WITH A 2019 EXPIRATION DATE
Beginning in January 2018, New York State vehicle inspection stickers will need to display a 2019 expiration date. These stickers are currently available for order from DMV, and DMV-DIRECT recommends that dealers place their order now in order to have the proper supply by January 1st. Dealers have two options for ordering inspection stickers: Option 1: Order through DMV’s website at transact2. dmv.ny.gov/SafireWeb . If you order online, you will need the following: • dealership facility number and ZIP code • the type of stickers you need • an email address to receive your confirmation Option 2: Complete the online order form, which can be printed for mailing. (Regular and express mailing instructions are included on the order form.)
You can check the status of your sticker order by: • Calling the Vehicle Safety
automated response system at 518.474.2398, and following the instructions. This service is available 24/7. You must provide your facility number to use this service. • Looking up the status online at: https://process.dmv. ny.gov/safirelookup . Checking the status online requires you to provide your facility number, facility ZIP code, and email address. It’s important for dealerships to secure their stock of 2019 inspection stickers as soon as possible, as thousands of inspection stations will be placing orders between now and the end of the year, and delivery can take up to five weeks. Please call DMV-DIRECT at 718.746.0400 if you have any questions regarding inspection stickers.
Scenario: Your dealership takes a vehicle on a trade-in that isn’t worth much and needs a lot of work. One of your technicians wants to purchase the vehicle and restore it on his/her own. Can you flip the title into the technician’s name so that (s)he can take full ownership? SELLING A “RESTORATION” VEHICLE TO A SERVICE TECH
this is extremely risky because the last registered owner will remain on-file with DMV until the vehicle is titled and/or registered again. If the vehicle receives any kind of summons, such as for a parking violation, that summons will go to the last registered owner. OTHER IMPORTANT REMINDERS ABOUT TRADE-INS When a dealership takes a vehicle in a trade, double- checking required documentation will ensure that DMV will not reject the paperwork when the vehicle is resold. Make sure that: • The customer has signed the title in the correct spot. • The mileage is filled in on the title’s odometer section. • The title lists the dealership as the “Purchaser” and is signed by a dealership representative. • The date of sale and the date of purchase are filled in and they match. • You have the correct MV-901 (lien release) if one is needed.
The answer to the above question depends entirely on whether the vehicle can pass inspection as-is. If the work the vehicle requires is mostly cosmetic and it can pass the safety and emissions inspection, the title can be transferred. If it cannot pass inspection, the dealership cannot retitle the vehicle, even to an employee. Any vehicle being sold or transferred by a dealership (unless it is being wholesaled or swapped) requires an MV-50. If the vehicle cannot pass inspection, an MV-50 cannot be completed and it therefore cannot be titled to a new owner. An employee can still technically buy the vehicle; however,
ORDER DMV SUPPLIES BEFORE THE HOLIDAYS HIT The increased volume of holiday mail can cause delivery delays this time of year. Not to mention, this is the season when DMV offices may not be fully staffed.
• Always send MV-50 books back to the DMV as soon as they are completed to ensure the dealership doesn’t run low on forms.
In addition to ensuring that the dealership has sufficient supplies of 2018 Inspection stickers for the remainder of this year and 2019 Inspection stickers to start issuing next year, dealerships are advised to: • Closely monitor supplies of license plates and in- transit permits, and order more if necessary.
from everyone at
Both DMV-DIRECT and the New York State DMV in Albany will be closed on the holidays listed below, which cover the remainder of 2017 and all of 2018.
November 23, 2017
December 25, 2017
New Year’s Day
January 01, 2018
Dr. Martin Luther King Jr. Day
January 15, 2018
February 19, 2018
May 28, 2018
July 4, 2018
September 3, 2018
October 8, 2018
Veterans Day (Observed)
November 12, 2018
November 22, 2018
December 25, 2018
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