|
|
Greetings!
In this newsletter we remind you of the upcoming Dodd-Frank Act and talk about Off-Site Sales and Sales Tax collection. We review some of the Motor Vehicle Title and Registration Rules, Regulations and Requirements regarding Dealer Resale Titles, Vehicle Record History and Temporary Registration Permits.
A brief reminder about Temporary Registration Permits - the duration of a temporary permit may not exceed 60 days from the date of sale/issuance. Temporary permits shall not expire on a Saturday, Sunday, or legal holiday. If the 60th day falls on a Saturday, Sunday, or legal holiday, the dealer shall make the permit expire on the first weekday prior to the Saturday, Sunday or legal holiday. Dealers shall verify SVID prior to issuing the permit unless the purchaser states the vehicle will be titled and registered out of the State of Colorado, then the permit shall be issued for 14 days or less.
Forgot the basics of Title and Registration rules and regulations? Or did not get the latest updates on Temporary Registration Permits? We offer continual training for dealers and their staff. Our upcoming classes are listed in this newsletter, or visit our website at: www.capss.biz.
Call Connie at 970-209-7499 or Mary at 303-478-2538 if you have questions.
Thank you again for allowing us to serve you.
Sincerely,
Mary Marvin & Connie Hatch
CAPSS LLC
|
 |
Off-Site Sales | | |
Dealers offering and selling motor vehicles away from their licensed location must comply with Motor Vehicle Industry Regulations regarding off-premise sales. Powersports dealers are not required to obtain off-premise permits for their powersports.
Regulation 12-6-102(16) requires motor vehicle dealers and used motor vehicles to obtain an off-premise permit to offer, display, and sell motor vehicles away from the dealer's licensed place of business.
The cost of the off-premise permit has increased to $250 per permit. Consecutive permits for the same location are not allowed.
A request for an off-premise permit shall be made in writing prior to the event using Form DR 2043, Off-Premise Permit Application. Four copies must be submitted. The written request shall list the location and the date(s) of the sale.
An off-premise sale shall not exceed six (6) days; however, the National Western Stock Show, Colorado State Fair, and the Metro Denver Auto Dealer's Association annual Denver Auto Show are exempt from the six(6) day rule. These specific events shall not exceed twenty (20) days. The permit shall be posted for inspection at the sale.
All personnel selling, offer, or attempting to negotiate the sale of a motor vehicle must be properly licensed as a Colorado motor vehicle salesperson, and the license must be issued by the Board prior to any sales.
The sale of motor vehicles is never allowed on Sunday. Boat trailers and snowmobile trailers are exempt from the Sunday closing law.
|
|
Sales Tax | | |
Motor Vehicle/Powersports Sales Tax Collection
Sales tax is collected different on motor vehicles and powersports. On all motor vehicle sales, the tax is based on the customer's residence (or business location if bought in a business name). A motor vehicle is described as: every vehicle intended primarily for use and operation on the public highways which is self-propelled and every vehicle intended primarily for operation on the public highways which is not driven or propelled by its own power but which is designed to be attached to or become a part of or to be drawn by a self-propelled vehicle, not including farm tractors and other machines and tools used in the production, harvesting, and care of farm products. Motor vehicle includes, without limitation, a low-power scooter as defined in section 42-1-102, C.R.S. (HB09-1026).
Powersport vehicles are taxed based on the Dealership's location (point of sale). Powersport vehicles include: a) off-highway vehicles b) personal watercraft or c) a snowmobile. Dealers must collect all tax due on powersport vehicles at the time of sale.
Off-highway vehicles are described as: any self-propelled vehicle that is designed to travel on wheels or tracks in contact with the ground, designed primarily for use off of the public highways, and generally and commonly used to transport persons for recreational purposes. "Off highway vehicle" does not include the following: military vehicles; golf carts; vehicles designed and used to carry persons with disabilities; and vehicles designed and used specifically for agricultural, logging or mining purposes.
Personal watercraft means: a motorboat that is designed to be operated by a person sitting, standing, or kneeling on the vessel, rather than the conventional manner of sitting or standing inside the vessel, and that is designed primarily for use off of the public highways, and that uses either of the following as the primary source of motive power: a) an inboard motor powering a water jet pump b) an outboard motor-driven propeller
Snowmobile means a self-propelled vehicle primarily designed or altered for travel on snow or ice when supported in part by skis, belts, or cleats and designed primarily for use off of the public highways. Snowmobile shall not include machinery used strictly for the grooming of snowmobile trails or ski slopes.
Reminder: If you are selling Powersports - you must have a Powersport dealer's license. |
|
Vehicle Title Record History Search | | |
Colorado state law and the Federal Driver's Privacy Protection Act (DPPA) state the department (Department of Revenue) shall not disclose or otherwise make available to any person or entity, personal information about any individual obtained by the department in connection with a motor vehicle.
For a person to purchase a record other than their own, they must declare their intended use of that record, or they must have the signature of the person in interest authorizing them to inspect the record. Record searches are available for vehicles based on VIN or title number only. To protect personal identification information, record searches may not be completed based on license plate number or owner name. The department maintains imaged records for seven years plus the current year only.
If there is a record in the motor vehicle system, the search will provide the vehicle description, the lien information if their is a lien on the vehicle, and the name and mailing address of the owner will be provided - when appropriate.
The Department requires that the Statement of Fact be included with the Title Information Request and Receipt and Requestor Release and Affidavit of Intended Use for all record search and title history requests. The Statement of Fact is required to explain the reason the information is being requested. In order to process the request, these forms need to be completed in full.
- The Title Information Request and Receipt must include the following information:
- the Vehicle Identification Number (VIN)
- Year and make of the vehicle
- The Colorado title number if available
- The name and address of the requestor at the top of the form
- The Requestor Release and Affidavit of Intended Use must include the VIN, name and address of the requestor, Secure and Verifiable Identification, firm name (if applicable), date, signature and one box checked for "approved permissible use".
- The Statement of Fact must include how, when and from whom the vehicle in question was obtained as well as how much was paid for the vehicle. It must also include why the person is requesting a title search or history. To be in compliance with DPPA, copies of additional documents may be required to determine if information may be released.
- A Certified VIN Inspection will be required prior to providing any personal identification information reflected on the vehicle record (owner name, address, etc.).
- A fee of $2.20 per search/history, payable to the Colorado Department of Revenue, must be submitted. For certified records, an additional $.50 per title record or title history request must be submitted.
- The request should be sent to the Colorado Title Section, Denver, CO 80261.
If the department determines the information should be released, the current title information will be mailed in approximately three (3) weeks from the receipt of the request. Written notification will be sent to the applicant for all requests that the department determines will not be provided. In those cases, the applicant can pursue a subpoena or court order.
The above information is from the Colorado State Title Manual. All of the above mentioned forms can be found at: Department of Motor Vehicles/Forms & Publications
|
|
Dealer Resale Title | | |
Where to Apply:
The State Title Section issues Dealer for Resale titles over the counter on the same day for a fee of $25 each, and may be limited to four transactions per dealership per day.
The County Motor Vehicle Office can issue Dealer for Resale titles for a fee of $7.20. The county motor vehicle office cannot issue Dealer for Resale titles on the same day if the supporting surrendered document is an out-of-state title. All out-of-state titles must be checked through the National Motor Vehicle Title Information System program at the State Title Section. The title will be verified and mailed from the State Title Section.
Colorado Dealer Must Provide: - Secure and Verifiable Identification
- The current title or applicable supporting ownership documents, properly endorsed to the dealership by the previous owner
- Odometer disclosure must be completed
- If the vehicle was titled in another state, the Verification of Vehicle Identification Number form must be completed by either
- A Colorado law enforcement officer
- A licensed Colorado motor vehicle dealer, or
- A licensed Colorado emissions testing station
- When an out-of-state title or registration is assigned to a Colorado Dealer, the Colorado Dealer's Statement Concerning an Out-of-State Vehicle (not required with a MSO) must be completed by the first Colorado dealer who transfers the out-of-state title, C.R.S. 42-6-119(3)(a,b,c). If the first dealer obtains title in their name, the Colorado Dealer's Statement Concerning an Out-of-State Vehicle form is not required.
- Vehicles titled for the first time in Colorado must be accompanied by one of the following documents to certify weight:
- Manufacturer's Statement of Origin
- Valid registration or title which specifies the weight, or
- A certified weight slip
- Out-of-State Title
- Power of Attorney for a Motor Vehicle. This form is required when the attorney in fact will be signing the title document for BOTH the buyer and seller and disclosing odometer. This form includes the odometer disclosure and is printed on secure paper to comply with Federal Odometer Regulations.
- Letter of Authorization. When a vehicle is being titled in the name of a company (dealership), the individual shall present a letter of authorization to act on behalf of the company. The letter shall be on the company's letterhead and signed by an authority of the company, or a statement signed under penalty of perjury or notarized. Secure and Verifiable Identification is required from an individual receiving the title. If the agent is the sole owner of the company, a Statement of Fact, stating that they are the sole owner of the company is required.
- Application for Title and/or Registration
- There cannot be a lien filed on a Dealer Resale Title
The above information is from the Colorado State Title manual. All of the above mentioned forms can be found at: Colorado Department of Motor Vehicles/Forms & Publications
|
|
Upcoming Training Seminars | |
 Mastery Exam Seminar:This seminar is an on-line class that can be taken from your own computer at any time. We guide you through the confusing rules and regulations that you must know to pass the state's exam. We also offer practice exams, which test your content knowledge and refine your test taking skills in preparation for the exam. To attend this seminar on-line, click this link: capsstraining.webex.com 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. - Nov 29, 2011 9:00am - 12:00pm Lakewood
- Dec 2, 2011 8:30am - 12:00pm Montrose
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. - Nov 8, 2011 9:00am - 1:00pm Lakewood
- Nov 17, 2011 9:00am - 1:00pm Montrose
- Dec 20, 2011 9:00am - 1:00pm Lakewood
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, including OFAC, Red Flags, and FTC Privacy Notices. Dealers taking this class will be prepared for a compliance inspection by the Auto Industry Division. - Oct 26, 2011 9:00am - 1:00pm Lakewood
- Dec 2, 2011 1:00pm - 5:00pm Montrose
- Dec 6, 2011 9:00am - 1:00pm Lakewood
|
|
Titles & Registrations
Form Changes/Updates | | |
New or Updated Forms
DR 2097 - Mastery Exam Affidavit (05/20/11)
This form has been updated, so if you are administering the Mastery Exam to your salespersons, use this updated version.
Reminders:
DR 2395 - Title and/or Registration Application (02/22/11)
Previous versions accepted until 07/01/11
NOTE: The major change to this form requires vehicle owners to declare their intent of Joint Tenancy with Rights of Survivorship or Tenants in Common. The VIN Verification and Colorado Dealer Statement Concerning an Out of State Vehicle have been reassigned a new form number.
DR 2698 - Verification of VIN and Colorado Dealer Statement Concerning an Out of State Vehicle (11/04/10)
This form has been separated from DR 2395. Utilize the new version as of 07/01/11
DR 2842 - Supplemental Secure and Verifiable Identification Information and Attestation Clause (1/21/11)
Previous versions accepted until 5/1/11
For questions, contact the Colorado State Title Section: 303-205-5608 or Colorado State Registration Section: 303-205-5607
|
|
|
QUESTIONS ?
Do you have questions regarding odometer laws, salvage vehicles, repossessions, or more? Benefits of your membership include phone consultations - so don't hesitate to pick up the phone and ask those questions. Not a member? Call now to join, only $125 a year!
Our newsletters will advise you of form updates by the state, legislative changes, and other items of interest, including compliance tips for your review.
We also offer continuing education to dealers and their employees. We strive to give you the best education at reasonable prices. Classes are offered on the front range (Golden) and the Western Slope (Montrose) as well as occasional classes in other parts of the state. For more about our seminars, check out the Upcoming Training Seminars section of this newsletter, or check out web site on-line at www.capss.biz.
And give us a call for all your form and supply needs!
If you have ideas on how we can better support you, please contact us!
|
|
|
The Dodd-Frank Act will go into effect on July 21, 2011. Part of the act was the creation of the Consumer Financial Protection Bureau (CFPB). The CFPB will have oversite over used motor-vehicle dealers and will have a significant impact on Buy-Here-Pay-Here establishments. Franchised dealers are exempt from oversite by the CFPB .
Although we do not yet know the scope of the rules that will be enforced by CFPB, the best way to prepare for this is to practice fair lending and non-discriminatory operations.
Standardize your operations so that all customers are offered all products and that the markup on those products are consistent with all consumers.
Also, make sure you can defend the system you use to quote payments..
As the CFPB gets further into the rule-making process, we will bring you updates.
|
ABOUT US
CAPSS is a company owned and operated by experienced former investigators of the Colorado Department of Revenue, Auto Industry Division. Connie Hatch retired as a Field Investigator, after 27 years of state service. Mary Marvin retired as a Supervisor Investigator, after 32 years of state service.
For two years, Mary and Connie contracted with CIADA to provide training for their members. Now they have moved on to better serve all dealers and wholesalers in the State of Colorado.
Contact us if we can serve you!
Front Range: Mary Marvin (303) 478-2538
Western Slope: Connie Hatch (970) 209-7499
| | |
|
