CAPSS Compliance Pathway
Colorado Automobile/Powersport Support Services, LLC

January 2015

Greetings!

Highlights in this newsletter include:

Emission Inspections and Advertising Rule changes for 2015. Be sure to review the changes in this newsletter to stay in compliance.

Uniform Consumer Credit Code annual renewal payment of $150 is due by January 31st. Any dealer that is a creditor should be paying this fee.

The Dealer Board and Auto Industry Division appointed a working group to make changes to the state Disclosure form. We will notify you once the changes become official.

Vehicles that are: salvage, rebuilt from salvage, nonrepairable, flood damaged, odometer tampered or vehicles that carried a brand placed on the title by another jurisdiction must be disclosed on the DR 2710, Branded Title Disclosure Statement. This form replaces the Salvage Disclosure Form.

Salesperson Mastery Exam Seminar - This is an on-demand webinar that can be accessed from any computer or tablet, anywhere, at any time, day or night. If your salesperson needs to take the Mastery Exam, this seminar will help guide them through the confusing rules and regulations they must know to pass the exam. The seminar also offers two practice exams, which test the student's knowledge and refines their test taking skills.

Questions regarding titling of off-highway vehicles? Crystal Soderman, Colorado Titles and Registrations, is available to answer these questions for dealers. You may contact her at: crystal.soderman@state.co.us

or: 303.205.5875.

We wish you a great 2015 and thank you for your continued support of CAPSS!

Mary Marvin & Connie Hatch
CAPSS LLC

	Emission Regulations

	Emissions Inspection Program Changes - January 2, 2015. There are some significant changes headed our way in 2015 for the auto emissions inspection program in the Denver-metro area and North Front Range. Among the changes is the extension of the initial model year exemption for newer vehicles from four to seven years. This change reflects improvements in vehicle technology that allow gasoline-powered engines to start out cleaner and stay cleaner longer. Beginning in the eighth model year, and extending through the eleventh model year, the vehicle inspection process will include an inspection of the On-Board Diagnostics (OBD and OBDII) systems. Instead of a driving test on the dynamometer (the "treadmill" test), vehicles will be "plugged in" to read the codes in their on-board computers. This means if your "check engine" light is on, your vehicle will not pass the inspection. Don't ignore it, get it checked! Older gasoline hybrid vehicles (beginning in the eighth model year) will require inspection for the first time, also using the OBD "plug-in" test. Other improvements to make the inspection process easier include adding more all-wheel drive lanes, offering more inspection options for vehicles that previously could not be inspected on the dynamometer (like vehicles with larger or smaller tires), and finally, Emission Stations are taking credit cards.

Advertising Rules

Advertising Rules were changed as of December 30, 2014.

The following changes were made:

*The term "Computer Display" is defined to mean any electronic device capable of presenting a commercial message.

*Rule 6 was modified to state - A used vehicle shall not be advertised in any manner that creates the impression that it is new.

*Rule 7 was modified to remove taxi cabs and police vehicles. Salvage, rebuilt from salvage, and flood vehicles must be included in an advertisement if the dealer has knowledge of that history.

*Rule 13 was modified to clearly state that all government fees or taxes are clearly excluded.

*Rule 14 was modified to target ads that combined rebates. It states - When advertising rebates, incentives, or other offers, a dealer shall not combine such offers or give the impression that such offers are obtainable, when in fact they are not.

Three new rules were added:

*Rule 17 If any advertisement relates to a lease, the advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a vehicle.

*Rule 18 Statements, such as "Everybody Financed," "No Credit Rejected," "We Finance Anyone," and other statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit, are prohibited, unless such statements are true.

*Rule 19 Bait advertising, as defined in § 18-5-303, C.R.S., is not allowed.

Following is the full Advertising Rules as amended.

ADVERTISING The statutory basis for this regulation is 12-6-118(3)(k), C.R.S. REGULATION 12-6-118(3)(k) Advertising shall be construed to be misleading or inaccurate in the following particulars:

Rule 1. Advertising a motor vehicle which is not in operable condition unless specifically disclosed.
Rule 2. Advertising which would imply the dealer is going out of business when such is not the case.
Rule 3. Advertising a specific motor vehicle for sale or lease with price or terms quoted, without fully identifying the vehicle as to year, make, model and dealer stock number. Such vehicle shall be willfully shown and sold at the advertised price and/or terms while such vehicle remains unsold or unleased, 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 and such time has elapsed. If a specific number of motor vehicles is advertised, such vehicles must have been invoiced to the dealer .
Rule 4. Using a picture or photograph of a vehicle in advertising when the picture or photograph is not the same make, year and equipment actually being offered for the price or terms advertised.
Rule 5. Advertising in such a manner which utilizes an asterisk or other reference symbols to contradict or materially change the meaning of any advertising statements.
Rule 6. A used vehicle shall not be advertised in any manner that creates the impression that it is new.
Rule 7. Advertising motor vehicles which are known by the dealer to be salvage, rebuilt from salvage, or flood vehicles, which are not so identified in the advertisement.
Rule 8. Advertising in any manner to imply that a purchaser will be receiving benefits of any existing loan on a vehicle when no such benefit exists.
Rule 9. Advertising or making statements that are not true or that cannot or will not be honored. Advertising which creates the false impression that the purchaser will determine the terms, price or conditions of a sale, such as "write your own deal," "name your own price," "no reasonable offer refused," and "we will not be undersold." Advertising any item as "free" which is associated with or conditioned upon the negotiated sale of a motor vehicle.
Rule 10. Advertising sales prices for used motor vehicles which claim or imply a specific savings or discount without clearly and accurately documenting the basis for the savings or discount.
Rule 11. Advertising any reference to "dealer cost" or "invoice" price. Advertising the word "wholesale" in connection with the retail offering of motor vehicles.
Rule 12. Advertising a specific trade-in amount or range of amounts without, in fact, offering such a trade-in amount and, failing to disclose or advertise the M.S.R.P., sale price, or capitalized cost of the vehicle from which the trade-in will be deducted.
Rule 13. Advertising the price of a vehicle without including all costs to the purchaser at the time of delivery, except sales tax, finance charges, cost of emissions test, other governmental fees or taxes, and transportation costs, incurred after sale, to deliver the vehicle to the purchaser at the purchaser's request.
Rule 14. Advertising any specific discount or rebate on new motor vehicles without the manufacturer's suggested retail price conspicuously stated in the ad. When advertising rebates, incentives, or other offers, a dealer shall not combine such offers or give the impression that such offers are obtainable, when in fact they are not.
Rule 15. Advertising any qualifying statement or disclosure which is not clear, conspicuous, and readable, and which is not adjacent to the offer or terms it qualifies, and in less than eight-point type.
Rule 16. Advertising any contest that offers to prospective participants the opportunity to receive or compete for gifts or prizes without such advertisement containing the words "no purchase or payment of any kind is necessary to enter or win this contest" in bold-faced type and at least ten-point type.
Rule 17. If any advertisement relates to a lease, the advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a vehicle.
Rule 18. Statements, such as "Everybody Financed," "No Credit Rejected," "We Finance Anyone," and other statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit, are prohibited, unless such statements are true.
Rule 19. Bait advertising, as defined in § 18-5-303, C.R.S., is not allowed.

	Title Branding

	*Title Branding - HB 14-1299* HB 14-1299 became effective August 6, 2014, for title branding beginning January 1, 2015. A brand is a permanent designation or marking on a motor vehicle's title associated with the vehicle identification number, that conveys information about the value of the vehicle, or indicates that the vehicle: is a salvage vehicle is rebuilt from salvage is nonrepairable is flood damaged has had its odometer tampered with, or has a designation placed on the title by another jurisdiction HB 14-1299 also removed the six-year limitation on applying for a salvage brand. FORM CHANGE: The DR 2710 (formerly called the Rebuilt from Salvage Disclosure form) has been changed to accommodate these branded titles. Ensure you are using the DR 2710 Branded Title Disclosure (12/24/14). DR 2710 Branded Title Form

Uniform Consumer Credit Code

Annual Filing Due January 31st

Colorado requires "creditors" to file and pay a $150 fee annually by January 31st. You are a creditor if:

You arrange financing from others
You provide financing to your customers
If your name appears on a retail installment contract or consumer lease as the creditor or lessor, even if you immediately sell or assign the contract to a finance company or bank

If you make consumer credit sales or leases AND
the contract includes a finance charge or interest
the written agreement consists of 5 or more installments

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 this fee and fail to do so:

A late fee of $5.00 per calendar day will be imposed if payment is not received by March 1st, AND
Customers have no legal obligation to pay any of the finance charges due under the credit transactions

The state does have a 30 day grace period for paying the renewal fee.

Mastery Exam Seminar

New Salesperson? CAPSS on-demand webinar guides the student through the confusing rules and regulations they must know to pass the exam. The seminar offers two practice exams which test the student's knowledge and refines their test taking skills in preparation for the State's Mastery Exam.

This Seminar can be accessed from any computer or tablet, anywhere, at any time, day or night. We provide the student with the knowledge and study tools to pass this examination!

To attend this seminar:

Go to: www.capsscolorado.com (that's CAPSS - with two SS!)
Select Mastery Exam
Select New Student Registration
Register and pay with a credit card
Start the seminar!

The student has access to the seminar for two days from their registration. After learning the material, the student may take the state's exam on-line at:

Colorado Mastery Exam

The exam must be administered by a licensed dealer or an approved third party provider (CAPSS).

Call us for questions or examination appointments.

Price: $75.00

Upcoming Training Seminars

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 in both the in-person and on-demand seminars. These practice exams test your knowledge and refine your test taking skills in preparation for the state's Mastery Exam.

We offer

In-person seminars. This seminar is an 8-hour class. The Mastery Exam is administered after the class at no extra charge. Register at www.capsscolorado.com
On-demand webinars. This Mastery Exam on-line, on-demand seminar can be accessed from your laptop, PC, or tablet at your convenience. It is available is available on-line 24 hours a day. Register at www.capsscolorado.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.

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 our 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!

In This Issue

Quick Links

CAPSS HOME PAGE

www.capsscolorado.com

CAPSS MEMBERSHIPS & TRAINING
www.capsscolorado.com

CAPSS MASTERY EXAM SEMINAR

Mastery Exam Seminar

Auto Industry Division-Mastery Exam

Mastery Exam

Colorado Auto Industry Division

AID Home Page

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.

Front Range:

Mary Marvin

303.478.2538

Western Slope:

Connie Hatch

970.209.7499

Colorado Automobile/Powersport Support Services, LLC

CAPSS	Contact us if we can serve you!
Front Range: Mary Marvin (303) 478-2538 Western Slope: Connie Hatch (970) 209-7499