DMV-Direct Newsletter December 2017

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.