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Greetings!
Summer is here and it's a great time to hold that off-premise sale! Off-premise permits are needed whenever you offer, display and sell motor vehicles away from the dealer's licensed place of business. Remember to send in your OFF-PREMISE PERMIT APPLICATION several weeks in advance so the state will have time to process the permit and return it to you for display at the sale. Send in 1 original and 3 copies of the application, along with the fee of $500 per event. On July 1, 2012, the new Fee Schedule went into effect. Dealer/Powersport license renewals are now $440, and sales person renewals are $100. Original sales person applications are $130. Click here for a complete list of the NEW FEES. Also beware that the Dealer Board is denying sales licenses when applicants fail to disclose material information on their application. We have included information in this newsletter that explains what needs to be disclosed on an application. The Federal Trade Commission is targeting deceptive advertisements by motor vehicle dealers. Read below to learn what not to say in your advertisements!
On July 17th, the Dealer Board elected the following officers: President: Beau Smith (Stil Tehar Motors); 1st Vice President - Jason Wagner (Public Member); 2nd Vice President: Bob Perry (Centennial Leasing & Sales). Governor Hickenlooper has appointed three new members to the Board: Stan Martin (Stan's Auto Sales - Westminster); John Schenden (Pro Chrysler Jeep Dodge - Thornton); and Chris Hefty (Attorney in Private Practice - Loveland). We congratulate these members and look forward to working with them this coming year.
You can now order all your form needs from our website E-Store, and we continue to add more items. If you find a link is not active, we are working on adding those items. You can call us with those needs. The Titles and Registration Section on our website will notify you of upcoming form changes by the State of Colorado. Titles and Registrations has changed motor vehicle and trailer make codes to be in compliance with NCIC. The new codes need to be used as of August 13th! To print the new codes, go to our website: FORM UPDATES. 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
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FTC - Advertising Violations | |
Falsely advertising that a dealer will promise to pay off trade-ins, no matter what consumers owe, may be cause for sanctions.
Five car dealers around the country have agreed to Federal Trade Commission (FTC) settlement orders that require them to stop running ads in which they promise to "pay off" a consumer's trade-in, no matter what the consumer owes on the vehicle.
The FTC charged that the ads deceived consumers into thinking they would no longer be responsible for paying off the loan balance on their trade-in, even if it exceeded the trade-in's value (i.e., the trade-in had "negative equity"). Instead, the dealers rolled the negative equity into the consumer's new vehicle loan or, in the case of one dealer, required consumers to pay it out of pocket. The FTC is constantly on the lookout for potentially deceptive ads, and brings actions to stop them when appropriate.
The dealers named in the FTC's complaints are: 1) Billion Auto, Inc., Sioux Falls, South Dakota; 2) Frank Myers AutoMaxx, LLC, Winston-Salem, North Carolina; 3 & 4) Key Hyundai of Manchester, LLC and Hyundai of Milford LLC, in Vernon and Milford, Connecticut, respectively, and which advertise jointly; and 5) Ramey Motors, Inc., Princeton, West Virginia.
The FTC's complaints allege that despite the dealer's claims, consumers still end up being responsible for paying the difference between the trade-in loan balance and the vehicle's value. The complaints charge that the dealers' representations that they will "pay off" what the consumers owe are false and misleading, and violate the FTC Act.
Examples of the allegedly deceptive advertisements include:
- Credit upside down? Need a new car? We want to pay off your car.
- _____ (dealer's name) wants to pay (your trade) off in full, no matter how much you owe.
- I want your trade no matter how much you owe or what you're driving. In fact, I'll pay off your trade when you upgrade to a nicer, newer vehicle.
- _____ (dealer's name) will pay off your trade no matter what you owe ... even if you're upside down. We will pay off your trade.)
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Salesperson Application Requirements | | |
Criminal History Disclosures
When completing a salesperson's application, remember the application must be complete with true and accurate information. The disclosures on the application are required for the Board and the hiring dealer. The hiring dealer must complete the "Employing Dealer's Certification" portion of the application. If the applicant has ever been arrested, charged with, convicted of or pled no contest to any felony or misdemeanor crime in the past ten years, excluding traffic violations, full details must be provided including type of crime, date, place of conviction, sentence received, etc. Also remember to provide supporting court documents (certified copies).
"A motor vehicle salesperson license may be denied or suspended if a material misstatement is made in an application for a license". Therefore, ensure that the salesperson is truthful when completing the application.
The Auto Industry Division conducts a criminal background check on all applicants. If the Division discovers a criminal history pertaining to the application and the applicant failed to disclose such, the application will be referred to the Board and is subject to Denial for Material Misstatement. "A material misstatement means any false or misleading statement, omission, or misrepresentation regarding personal identification information, employment history, prior occupational licensing history, criminal background and history, including arrests, filings, indictments, municipal, misdemeanor and/or felony convictions and deferred judgments."
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Trailers | | |
Colorado titles and registers all trailers!
The applications for trailers have the same requirements as application for other vehicles. MSO's for trailers that are not on secure paper are not acceptable with the following two exceptions:
- Trailer MSO's from any person who only manufacturers trailers that weigh less than two-thousand pounds and does not manufacture any other type of motor vehicle
- Trailer MSO's from any person, other than a manufacturer operating a dealership (or as a dealer) pursuant to section 12-6-120.5, who is a licensed dealer selling motor vehicles that such person has manufactured
Beginning with the 1981 model year, NHTSA (Department of Transportation), requires manufacturers selling over-the-road vehicles in the United States to produce vehicles with a 17-character fixed format VIN. This applies to passenger cars, multipurpose passenger vehicles, trucks, buses, trailers, incomplete vehicles and motorcycles. This Certified Federal Regulation (49 CFR 565) does not exempt a manufacturer of trailers 2,000 pounds or less from providing a 17 digit conforming VIN.
Homemade Trailers: The owner of a trailer which is self-assembled and does not have an identification number, must apply for a Colorado Trailer Assigned VIN to title and register the trailer. The owner must submit the following:
- DR 2697 Certificate of Equipment Compliance for trailers less than 2,000 pounds
- DR 2704 Colorado Certified VIN Inspection
- Colorado Roadworthy Trailer Checklist completed by a Certified VIN Inspector
- Certified Weight Slip
- DR 2409 Statement of Assembly of Home Trailer and Assignment of Trailer I.D. Number
- The county motor vehicle office may require bills of sale for essential parts
Identification numbers will be issued in numerical sequence and will show the letters "IDTL" followed by the sequential number issued. Trailer ID numbers will no longer be issued with the "CO" in the ID format. The make will be "Homemade" and the year is the year of application for title.
Lost or Removed Trailer VIN's: If a vehicle ID number is lost or removed from a manufactured trailer, a DR 2704 Colorado Certified VIN inspection is required!
- If the manufacturer's name is still on the trailer
- The county motor vehicle office issues a trailer assigned identification number to the trailer. A DR 2409 Statement of Assembly of Homemade Trailer and Assignment of Trailer I.D. Number must be completed
- The make and year remain the same
- If the manufacturer's name does not appear on the trailer
- The county motor vehicle office issues a trailer assigned identification number to the trailer. A DR 2409 Statement of Assembly of Homemade Trailer and Assignment of Trailer I.D. Number must be completed
- The make will be shown as "Homemade" on the new application
One of the following procedures is required:
- If the trailer meets the requirements in the procedure for trailers less than 2,000 pounds, the "In Lieu of Bonding" procedure should be followed
- If the trailer does not meet the requirements of the procedure as defined above, a bond is required.
Trailers From Non-Title States: Small trailers that come into Colorado from states that do not title trailers, but require only registration of trailers must follow this procedure. First, it must be determined by verifying from reference books (R.L. Polk, NADA, or Peck's) that the specific state does not title trailers, but only requires registration of small trailers.
Documents required for titling:
- Current registration (original required)
- If the registration is transferred to a new owner, the assignment on the registration must be completed, or a notorized bill of sale is acceptable if there is no assignment area. Application acceptance date must be prior to expiration of the registration. No grace period.
- DR 2697 Certificate of Equipment Compliance for Trailers Less Than 2,000 Pounds (if applicable)
- Completed Colorado Roadworthy Trailer Checklist completed and signed by a Certified VIN Inspector
- Certified Weight Slip
- A DR 2704 Colorado Certified VIN Inspection
Trailers from States that Do Not Title and Do Not Register Trailers: You must verify from reference books (R.L. Polk, NADA, or Peck's) that the specific state does not title or register small trailers.
When a trailer is brought into Colorado from a state that does not register or title small trailers, the documents required for titling are:
- DR 2697 Certificate of Equipment Compliance for Trailers Less Than 2,000 Pounds
- Completed Colorado Roadworthy Trailer Checklist completed and signed by a Certified VIN Inspector
- Certified Weight Slip
- DR 2704 Colorado Certified VIN inspection
- DR 2374 Statement of Trailer Ownership, completed and signed by the applicant
For questions on trailers, contact your local County Clerk's Office. They can guide you through the procedures for registering and titling trailers.
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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. - Oct 9, 2012 9:00am - 12:00pm Lakewood
- Oct 12, 2012 9:00am - 1:00pm 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. - Sept 11, 2012 9:00am - 1:00pm Lakewood
- Sept 14, 2012 9:00am - 1:00pm Montrose
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. - Aug 28, 2012 9:00am - 1:00pm Lakewood
- Oct 12, 2012 1:00pm - 5:00pm Montrose
- Oct 23, 2012 9:00am - 1:00pm Lakewood
To register for any of these seminars, go to www.capsscolorado.com. To schedule a class at your dealership (minimum number of students may be required), call Mary Marvin (Front Range) 303-478-2538; or Connie Hatch (Western Slope) 970-209-7499. |
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Titles & Registrations
Form Changes/Updates | | |
Code Updates:
Beginning August 13, 2012, Colorado will begin using 4-Digit Vehicle Make Abbreviations.
It has been discovered that there are vehicles that do not have a 4-digit Vehicle Make code assigned by NCIC (National Crime Information Center). NCIC has provided an unlisted vehicle make for trailers (TRLR) and trucks (TRUK). There is no unlisted code for any other vehicle. Colorado will be using these codes until a make is assigned for the specific vehicle.
As a reminder, the make abbreviations for motorhomes and motorized vehicles will be found on the vehicle make abbreviation list, and non-motorzied vehicles such as manufactured homes and trailers will be on the trailer make list.
Manufactured Homes and SMM are exempt from the four character make requirement. New vehicles continue to be added to these lists,
For questions, contact the Colorado State Title Section: 303-205-5608 or Colorado State Registration Section: 303-205-5607
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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 (Lakewood) 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.capsscolorado.com.
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!
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Federal Law Compliance!
Are you remaining compliant with the Federal Laws governing motor vehicle sales? Remember to comply with the Federal odometer law by retaining your incoming and outgoing mileage disclosures for five (5) years, along with a copy of the front and back of the title.
The Department of Treasury's website for OFAC has become user and printer friendly --- and it's FREE. The website is: sndsearch.ofac.treas.gov When running the name search against the list of Specially Designated Nationals and Blocked Persons List, and you encounter many similarities, call the Department of Treasury's hot line at 1-800-540-6322. Also, keep a copy of your search in your deal jacket for five (5) years.
Don't forget your Safeguard Plan to ensure the security and confidentiality of non-public information for all your customers. The Safeguard Rule requires dealers to develop a written information security plan that describes their program to protect customer's information.
And last but not least, a reminder to institute a written Red Flags Rule plan to detect, prevent, and mitigate identity theft in connection with the opening of accounts when your customer purchases a vehicle from you and you have secured the financing for that vehicle. |
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
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