Odometer Tampering? Really???

You may have seen the news recently, where two used car dealerships were charged with odometer tampering. By now you would think those who try to get around the law knows it is not worth it and that you will get caught. With today’s electronic age and tracking of titles it is not worth the risk. Those who violate the law cause all dealers to be scrutinized by the public and building that confidence is hard to overcome.

Penalties for odometer tampering include both State & Federal violations. They also include civil damages including three times damages plus attorney fees and criminal penalties which include large fines and jail time.

Because of this situation, we have had dealers calling us on proper odometer disclosure. Here are a few reminders.

Happy Thanksgiving

The staff at the IDS offices wish you a Happy Thanksgiving holiday.

As a reminder, the IDS offices will be closed on Thanksgiving, November 24th, as well as Friday November 25th. Our offices will reopen on Monday morning, November 28th at our regularly scheduled hours.

If you have title work that needs processing before the long holiday weekend, please remember to bring it in early in order for our staff to get it completed in a timely manner.

Thanks for your business.

Happy Thanksgiving!

It's Snowing!!! Where's My Snowrake?

It's snowing outside. Did you remember to get your snow rake today? If you forgot your snow rake you can come into one of our three offices on Monday for yours. And with an order of 50 more coming in on Monday, we are sure to have one for you, but don't wait to long as they do go quick. The price for snow rakes is $26.50 and if your an IADA member save a little on that order.

Dental Care Isn't Cheap

Dental care isn't cheap, but now, with the new NIADA Discount Dental Program*, you and your employees can avoid letting a toothache turn into a giant pain in your wallet.

You'll pay LESS for routine dental care, like cleanings, x-rays and exams. You'll cut costs for treatments, such as fillings, fluoride treatments, and pulling wisdom teeth. You can even save money on major dental work like root canals, crowns, bridges and braces.

Plus, as an IADA & NIADA member, you (and your entire family) are guaranteed acceptance in this money-saving program. You cannot be turned down — even if you have a history of dental problems.

Smile! This exclusive NIADA benefit helps you protect your family's pearly whites...while delivering lower dental bills at the same time.

But it's important to sign up for this budget-friendly program right away. To sign up for this great program contact Adam Jones at the IADAU office for details on enrollment. (801.566.3802)

Then you can relax with a smile...knowing you've already stepped up to the dental care your family needs...without letting expensive dental bills take a big bite out of your budget.

*The NIADA Discount Dental Program, all insurance solicitations, discussions, and quotes, and policy terms and fulfillment are offered by Marsh U.S. Consumer, a service of Seabury & Smith, Inc.; d/b/a in CA as Seabury & Smith Insurance Program Management, CA License #0633005, AR License #245544. Coverage may vary and/or may not be available in all states.

Don't Forget Your Snowrakes

The weather is changing and the snow is coming. Do you have your snow rake? Get yours before the snow falls. Call us and order yours at $26.50 per snow rake. If you are member of the Independent Auto Dealers Association of Utah get yours for a discount.

Need additional forms, supplies or promotional products? Log on to our website at www.idsinfo.com and see our entire line up of products. New products are added weekly.

Don't miss out on our full line up of holiday products, including smiley face santa hats, gift bows, gift tags and more.

Down Payment Disclosure

Does your company policy state that down payments are not refundable? Do you state this to the customer when a down payment is made? If not your down payment may not be yours.

In most situations, down payments should always be refundable. Disclosure is the most important thing if you are not refunding down payments. A down payment disclosure form should be used so that both you and your customer understand what agreement has been made.

IDS provides a simple down payment form that specifies to the customer that the down payment is not refundable. The language states,

If the buyer, for any reason does not accept the within described vehicle and terms disclosed on the Motor Vehicle Contract of Sale, the amount deposited or partial payment received shall be deemed compensation to the undersigned Seller for the breach of this option and for all damages sustained by the Seller, together with reasonable attorney's fees. All vehicles are sold AS-IS as accepted, unless written guarantee is given.

If you don't have your Down Payment Disclosure form, order yours today online at www.idsinfo.com.

Allowable Dealer Plate Use

The allowable use of dealer plates is very broad based. Dealer plates may not be used:

1. on a vehicle leased or rented for compensation; the vehicle must be licensed and registered in the name of the business in order to be leased or rented; or
2. in lieu of registration, on a motor vehicle sold by the dealer; an example would be if a temporary permit had expired in place of renewing that registration; or
3. on a loaded motor vehicle over 12,000 pounds gross laden weight unless a special loaded demonstration permit is obtained from the division.

There is no restriction placed on how a dealer can use dealer plates as long as the vehicle is owned by or consigned to the dealership, it is not being leased or rented, and it is not loaded with a gross weight of over 12,000 pounds (41-3-501 UGA). You can use a dealer plate to drive a vehicle back to your dealership after purchasing it at an out-of state auction as long as your dealership owns the vehicle. You are, however, subject to the registration laws of the states you travel through, and some states may not recognize Utah dealer plates.

Dealer plates can only be used by dealers on vehicles owned by or consigned to their dealership (41-3-501). All special plates should be securely fastened in a horizontal position to the rear of the vehicle where clearly visible and legible. You cannot display a dealer plate on the dashboard or in a side window (41-3-504 UCA).

If you feel that you or one of your employees has been improperly fined by a local Utah enforcement officer (local police or highway patrol) please contact our office. Its important that each police jurisdiction within the state be properly educated about the rules of dealer plates. Contact us at 801.566.3802.

The Independent Auto Dealers Association of Utah has available to all members a card outlining these allowable plate uses that you can carry in your wallet. Please call the Midvale IDS office to obtain your FREE dealer plate use cards. Cards are available for all salesman and owners of member dealers.

Veterans Day Office Hours

All our IDS office locations will be open on Veterans Day for their regularly scheduled hours. As a reminder, all State of Utah DMV offices will be closed for the day. Remember to call your local IDS office to schedule your Emergency Walk title service early as times will fill fast on this holiday.

Midvale: 801.566.3802

Ogden: 801.621.5869

Orem: 801.852.9003

Remember there is no limit to your packet size or the time you bring them to our office. Those packets that have scheduled appointments receive priority.

Odometer Fraud on the Rise in Utah

A recent KSL report showed just how easy odometer fraud in Utah is becoming.  A digital odometer KSL reports is becoming as simple to change as is hacking into a computer. 

SALT LAKE CITY – Investigators say odometer fraud is on the rise in Utah thanks to new technology that makes the crime easier to commit.

Changing an odometer has always been easy.

“Anyone can do it,” said Lt. Allan Shinney, an investigator with the Utah Motor Vehicle Enforcement Division.

And the digital age has made it easier and quicker.

“The technology’s caught up with the instrument tools we were using to catch odometer fraud.  Now these people are learning new ways on how to beat the system,” Shinney said.

YouTube has video of a computerized device that can change a digital odometer in as little as six seconds and sells for $5,000...

For the rest of the article check out this link to the KSL story. 

http://www.ksl.com/?sid=17911280

Your Vote Makes a Difference

Next week, Utah voters will select new city leaders as most municipalities will be holding elections.  As a used car dealer in the state of Utah, you know that many decisions made at the municipal level can have an impact on your business and your ability to sell motor vehicles. We encourage you to get out an vote in this year's elections.

Election Day is next Tuesday, November 8th. If you want to avoid lines or think you may be busy that day, you can vote early. Voting early is easy.  Simply go to your early voting location and bring a valid form of identification, such as a drivers license or passport. If you are unsure on where to go to vote early, you can visit http://vote.utah.gov/early-voting/ to find your early voting location.

Its important to make sure that your voice is heard. Individually we struggle to be heard, but collectively we cannot be ignored. Be sure to vote, either at the polls next Tuesday or vote early.  Early voting ends Friday, November 4th.

Receiving Titles from Lien Holders in a Timely Manner.

Last year the Authorization for Payoff form was replaced with a new updated Authorization for Payoff & Lien Holder Notification form. The new three part form replaces the old two part form. The new form now includes the required notification to the lien holder. The requirement for dealers and lien holders in regards to vehicles that have been traded in as part of a sale now require that a notification be provided to the lien holder and notification be given to the consumer that is trading in the vehicle. The new language on the form also specifies to the lien holder that they are required to deliver the title with the appropriate lien release to the dealer within 9 days of receipt of this notice and payment satisfying the lien. The form also specifies to the lien holder whether the dealer is including the payment for the lien with the notice or that it will be made with the specified time allowed by law.

The diagram below specifies and outlines the timeline of lien holder notification.

Advertising Violations

Here are two violations that have been seen lately, don’t let it be your dealership.

R877-23V-7. Misleading Advertising Pursuant to Utah Code Ann.

Section 41-3-210.

(f) Trade-in Allowance. Statements representing that no other dealer grants greater allowances for trade-ins may not be used. A specific trade-in amount or range of trade-in amounts may not be used in advertising.

(n) Free. "Free" may be used in advertising only when the advertiser is offering a gift that is not conditional on the purchase of any property or service.

Salespersons - When can they start working?

We are seeing individuals that have been denied a salesperson license, come to an appeal and state that they have been working as a salesperson since the application was submitted. The person CANNOT act as a salesperson until the dealership receives the license issued from MVED. Just because the application has been submitted, doesn’t mean the license has been issued. By allowing a person to work without a license, the dealership can be charged criminally and receive a civil penalty as well. Please don’t put your dealership in this situation. Once the license is in hand, the person is good, not before.

41-3-203. Licenses -- Form -- Seal -- Custody of salesperson's license -- Display of salesperson and dealer licenses -- Licensee's pocket card.

(c) Each salesperson shall on request display his pocket card.

41-3-210. License holders -- Prohibitions and requirements.
(1) The holder of any license issued under this chapter may not:
(m) as anyone other than a salesperson licensed under this chapter, be present on a dealer display space and contact prospective customers to promote the sale of the dealer's vehicles;
(6) A dealer may not assist an unlicensed dealer or salesperson in unlawful activity through active or passive participation in sales, or by allowing use of his facilities or dealer license number, or by any other means.

Who is Responsible if Your Customer Wrecks or Damages Your Vehicle on a Test Drive?

Legislators raised this question during the last legislative session. They proposed that a large sign be posted in the dealership or the person test-driving the vehicle sign a disclosure. This bill did not pass because many used car dealers are already using a test drive agreement.

Using a test drive agreement benefits the dealer in many ways. It discloses how long the vehicle can be test driven, how many miles they may drive, who can drive the vehicle, disclosure of insurance, valid drivers license and most importantly, who will pay first if the vehicle is wrecked or damaged. It is not necessary to fill out every line of the test drive agreement but only what you may think will protect you in each case. It is important they sign it agreeing to the terms of the test drive.