Dealer Fees Reduced

Internet Sales & Advertising

 

The most obvious and most blatantly violated rules are:   

 

Advertising Rule #3 - which requires that a vehicle be willfully shown and sold at the advertised price and/or terms while such vehicle remains unsold for a period of five days following the last date the ad was published, unless the ad states that the advertised price and terms are good only for a specific time.

 

Advertising Rule #13 - which states an advertisement is misleading if the price of a vehicle does not include all costs to the purchaser at the time of delivery, except sales tax, finance charges, cost of emissions test, and transportation costs, incurred after sale, to deliver the vehicle to the purchaser at the purchaser's request.  This includes D&H.  Delivery and handling fees must be included in the advertised price - they cannot be added to an advertised price - the ad cannot read "plus d&h".  All costs, except the aforementioned exemptions, must be disclosed to the purchaser in the advertised price.

 

Federal Regulation Z - is another regulation widely ignored.  When advertising the amount of the down payment, amount of any payment, number of payments, period of repayment, or the amount of any finance charge - then the following terms must also be disclosed in the ad:  

 

Upcoming Training Seminars

Getting the Car Deal Rolling:  This seminar concentrates on how to complete the basic car deal paperwork involved in a sales transaction.  It includes an introduction to the required sales documents for motor vehicles and power sport sales, and to title transfer documents.  This seminar is uniquely formatted for the novice dealer/and or title clerk. 

  

 

Intermediate & Refresher Title Document Training:  This seminar includes basic title documents for incoming and outgoing title transfer, various title forms, applications for title, how and why to do a VIN inspection, title assignments, odometer disclosures, secure and verifiable identification and more.

 

The Well-Informed Dealer - Do You Think You Know It All?  Are you complying with the Federal Truth-in-Mileage Act?  Do you know what damage disclosure is required to be furnished to your customer?  If you did not know the vehicle you sold was previously salvaged, do you have to buy the vehicle back?   What charges can be added to an advertised price?  This seminar covers numerous items required for compliance of industry's rules and regulations.  Dealers taking this class will be prepared for a compliance inspection by the Auto Industry Division. 

 

OFAC/Safeguard Training/Redflags:  This seminar explains what Red Flags is all about, who must comply, how to comply, and the sanctions for non-compliance.  It includes a template to help you compose your Red Flags policy.  The seminar also covers OFAC, and the Gramm-Leach-Bliley Act, including Privacy Notices and Safeguard Training. 

 

To register for any of these seminars, go to www.capss.biz .   

Legislative Update Reminders

 

Effective January 1, 2010, all states are required to come into compliance with Federal Law 28 CRF Part 25.  This law requires verification of titling information for all automobiles, including verification checks before issuing a certificate of title to an individual or entity claiming to have purchased an automobile from an individual or entity in another state or in cases of title transfers.  In order to comply with this requirement, the state has disabled the ability to print over the counter titles on all surrendered out-of-state titles.   These titles will be printed at the state.  Expect delays in the processing of these titles.  For all questions, contact the Title Section at 303-205-5608.

 

NOTIFICATION TO EXTEND CREDIT

Colorado motor vehicle dealers that extend consumer credit should be aware of the Uniform Consumer Credit Code and must register with the Colorado Attorney General's Office to extend credit.   Credit sellers and retail merchants that regularly extend consumer credit as a "creditor" must annually file and pay the Uniform Consumer Credit Code notification fees.

 

Previously only businesses that collected consumer credit sale and lease payments for more than 30 days after the contract date must have complied with this law.  Changes in the law became Effective January 1, 2010.

 

Following are the current compliance requirements:

The notification fee is $50 annually.  You are subject to UCCC notification and fees if you are a "Creditor".  A creditor is:

Payments are due within 30 days after commencing business in this state and on or before January 31st of each year thereafter.  If you are required to pay the fee and fail to do so:

 

Compliance Examinations:

The UCCC Administrator may examine credit sellers, lessors and sales finance companies for compliance with UCCC requirements.  Examination reports advise businesses of practices that do not comply with the UCCC and request corrective action.

 

Next year dealerships will have to comply with another disclosure requirement before they can extend financing to car buyers.  The Federal Reserve Board and the Federal Trade Commission issued their final Risk-Based Pricing Rules on December 22, 2009.

 

The disclosure rule applies to any lender that bases credit terms on a customer's credit score, including dealerships that arrange financing for customers.

 

The rule becomes effective January 1, 2011, and requires dealerships to give their finance customers a written report showing their current credit score, the name of the credit reporting agency providing the score and either a bar graph or clearly worded statement telling customers how their scores rank against those of other consumers.

 

The FTC will provide a form that dealerships can use to meet the disclosure requirements.  Dealers must give finance customers a written report showing:

 

We will keep you informed on this requirement as it gets closer to the implementation date.

Titles & Registrations

Form Changes/Updates