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Greetings!
Summer Greetings! Highlights in this newsletter include: A new 7-page salesperson application has been accepted and must be used as of July 1st. All old applications will be rejected. New fees for FY 13-14 are effective on July 1st. Dealer and salesperson renewal fees have decreased by 5%, and off-premise permits have decreased to $300 per event. Check the new fees before sending any applications to the Auto Industry Division: FEES FY 13-14. Also, new legislation is coming so read the below articles to keep up to date. Thank you for your continued support of CAPSS!
Mary Marvin & Connie Hatch
CAPSS LLC
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2013 Legislative Update
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Senate Bill 13-280 Titles for Off-Highway Vehicles - PASSED
This bill was signed by the Governor on June 5, 2013. SB 13-280 concerns the issuance of titles for off-highway vehicles and is explained below in part. Off-highway vehicles have been defined in this legislation as a 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 highway; and
- Generally and commonly used to transport persons for recreational purposes
Off-highway vehicles include vehicles known as all-terrain vehicles and snowmobiles, but does not include:
- Toy vehicles
- Vehicles designed and used primarily for travel on, over, or in the water
- Military vehicles
- Golf carts or golf cars
- Vehicles designed and used to carry persons with disabilities
- Vehicles designed and used specifically for agricultural, logging, or mining purposes
- Motor vehicles
This legislation does not apply to off-highway vehicles that were first sold or transferred before July 1, 2014, until the off-highway vehicle is sold or transferred to a powersports vehicle dealer after July 1, 2014.
The title must contain the make and model of the off-highway vehicle together with the motor and any other serial number of the vehicle, and a description of any other marks or symbols placed on the vehicle by the manufacturer for identification purposes. The title shall include a description of every lien on the off-highway vehicle that appears in the application for title.
No person shall sell or transfer an off-highway vehicle without delivering a certificate of title duly transferred. Upon the sale or transfer, a dealer of an off-highway vehicle for which a title has been issued, the dealer need not procure or file for a new title as long as the vehicle remains in the dealer's possession and at the dealer's place of business. However, if a dealer wishes to obtain a new title, he may present the old title and a new title shall be issued to the dealer within one working day.
A dealer of off-highway vehicles shall, within 30 days after the sale, deliver or facilitate delivery of the title to the purchaser or holder of a chattel mortgage. Upon the sale of a new off-highway vehicle, the dealer shall deliver to the purchaser a sufficient bill of sale and the Manufacturer Certificate of Origin.
For purpose of application of title and registration, the purchase shall register the off-highway vehicle at the person's residence except that, if an off-highway vehicle is permanently maintained at an address other than the address of the owner's residence, the vehicle must be registered at the address where the vehicle is permanently maintained.
Off-highway vehicle sales. Unless the owner has obtained a title for an off-highway vehicle, a person shall not sell the off-highway vehicle and an off-highway vehicle dealer shall not purchase the off-highway vehicle. A sale or purchase made in violation of this section is void.
Senate Bill 13-134 Sales Tax Collection - has passed!
This bill concerns the process of collection of sales tax on motor vehicles purchased through an auction that is not licensed as a motor vehicle dealer. As long as the auction is conducted by an auctioneer who is not a licensed motor vehicle dealer, the sales tax will be collected by the county clerk.
Senate Bill 13-257 Emissions - DID NOT PASS
This bill concerns the exemption for the motor vehicle emission inspection program. The Senate proposed legislation to extend the exemption from it's fourth model year or newer to seven model years for a motor vehicle that is being registered in the emission program area for the first time that is exempt from the requirement to get an emission test. This bill was postponed indefinitely; there this legislation did not pass.
Senate Bill 13-265 Franchise Agreements - PASSED
This bill concerns franchise agreements between vehicle dealers and the suppliers of these vehicles and was signed by the Governor on June 5, 2013.
Sales, service, and parts agreement means an agreement between a manufacturer, distributor, or manufacturer representative and a motor vehicle or powersports dealer authorizing the dealer to sell and service a line-make of motor or powersports vehicles or imposing any duty on the dealer in consideration for the right to have or competitively operate a franchise, including any amendments or additional related agreements thereto. Each amendment, modification, or addendum that materially affects the rights, responsibilities, or obligations of the contracting parties creates a new sales, service and parts agreement.
Each person apply for a manufacturer's or distributor's or powersports vehicle manufacturer's or distributor's license shall:
- File with the executive director a certified copy of their typical written sales, service, and parts agreement with all motor vehicle or powersports dealers
- File evidence of the appointment of an agent for process in the State of Colorado
- Within 60 days after amending or modifying or adding an addendum to the sales, service or parts agreement of more than one motor vehicle dealer or powersports dealer, a licensed manufacturer or distributor shall file a certified copy of the new sales, service, and parts agreement, including the changes, with the executive director if the amendment, modification, or addendum materially alters the rights and obligations of the contracting parties.
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SALESPERSON APPLICATIONS
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The Auto Industry Division has released the following information:
For the past year the Division has been working on revising the Salesperson Application
and was approved by the Dealer Board at the April 2013 Board Meeting. Implementation
of the application will be July 1, 2013. The Division will accept either the new or old
application until then. If an old application is submitted July 1, 2013 or after it will be
rejected.
This comprehensive application is seven (7) pages and must be filled out in detail. A
letter is attached to the application which tells the applicant what to expect and what
some of the common misconceptions are. Page 1 of the application has a "checklist" to
make sure everything needed is attached. If court documents are required they must be
certified and submitted with the application. Failure to provide certified court documents
will result in an incomplete application and will be rejected and no temporary license will
be issued.
The new Salesperson Application (DR 2115 dated 4/22/13) is a PDF document that allows
the applicant to fill-in the application electronically. You cannot save data that is typed
into this form. You may either:
a) Print a blank copy and fill out the form manually
Or
b) Fill out the form on-line and then immediately print the completed form.
If you are interrupted during the course of filling out the form electronically, you will not
be able to save/retrieve the data that you have typed into the form.
This application may only be submitted in a printed format to the Auto Industry
Division. Electronic copies will not be accepted.
*****
We remind you to fully and completely disclose all convictions and include CERTIFIED COURT RECORDS (you will need to pay a fee for the court to certify your record)! Also, include any information regarding rehabilitation as the Dealer Board must take that into consideration.
Once the Auto Industry Division receives the salesperson application, they will send out a temporary authorization letter. The salesperson may begin selling once that temporary license letter has been received.
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Consumer Financial Protection Bureau (CFPB)
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Auto lending & Compliance with the Equal Credit Opportunity Act
Auto Lenders need to be aware of CFPB Bulletin 2013-02 which discusses creditors and discrimination. This bulletin talks about dealer markup and compensation policies, stating that "indirect auto lenders that retain dealer markup and compensation policies may wish to address the fair lending risks of such policies" and that those indirect lenders should take action by "sending communications to all participating dealers explaining the ECOA ... and articulating the dealer's obligation to mark up interest rates in a non-discriminatory manner in instances where such markups are permitted".
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Pay Off Trades - No Matter What Is Owed
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We still see advertising from dealers stating they will "pay off trade vehicles - no matter what is owed". Last year the Federal Trade Commission took action against five dealerships for this type of advertising.
A FTC news release states:
The Federal Trade Commission has approved final orders settling charges that five automobile dealers made deceptive claims that they would pay off the remaining balance on consumers' trade-ins, no matter what they owed. The FTC's complaint alleged that despite their advertisements, Billion Auto, Inc.; Frank Myers AutoMaxx, LLC; Key Hyundai, LLC and Hyundai of Milford LLC; and Ramey Motors, Inc., actually rolled the negative equity on the trade-ins into customers' new car loans. The final orders prohibit the auto dealers from making these types of deceptive claims.
We encourage you to review all of your ads for deceptive statements!
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County Clerk Corner
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Temp Permits - Titles - Sales Tax
 60 Day Temporary Permits - temp permits cannot extend over 60 days. if the 60th day ends on a weekend or a holiday, back up the date to the previous week day. Do not put down an expiration date of two months from the date of sale - that date will equate to 61 or 62 days, putting you in violation of regulation.
Take an extra minute to explain your store's policy on title delivery to the customer. Will the title paperwork be mailed direct to their residence? Will their title paperwork be mailed to the County Clerk's Office in 5 days or 20 days? Save the customer the frustration of showing up at the County Clerk's Office to get their plates before their title paperwork has even been mailed.
Many customers wait until their temp permit is ready to expire before heading to the County Clerk's Office to obtain their plates. They are then surprised to learn their fees would have been less if they came in earlier - or they get nailed for late fees if they wait too long. Continue to make the customer's car buying experience great by educating them on title and registration issues.
Sales tax exempt? Request the customer show their exemption certificate and make a copy for your files.
Thank you to Michelle Nauer, Ouray County Clerk, for the above information.
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Upcoming Training Seminars
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 Mastery Exam Seminar: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. We offer - In-person seminars. The Mastery Exam is administered after the class at no extra charge. Register at www.capsscolorado.com
- On-line class that can be taken from your own computer at any time. If you select the on-line class, you will still need to arrange for an approved administrator or dealer to proctor the Mastery Exam. To attend the on-line seminar, click this link: capsstraining.webex.com.
NOTE: If you are a dealer or wholesaler applicant, you may need the Pre-Licensing Certification course which is an 8-hour course. Click here for more info: Pre-Licensing Seminar 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. 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, including OFAC, Red Flags, and FTC Privacy Notices. Dealers taking this class will be prepared for a compliance inspection by the Auto Industry Division. To register for any of these seminars, go to www.capsscolorado.com. To schedule a class at your dealership, 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
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Reminder of Code Updates:
Beginning August 13, 2012, Colorado began using 4-Digit Vehicle Make Abbreviations.
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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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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