Fall/Winter 2010: 

CORRECTION NOTICE CORNER

Renton – A correction notice was issued for dealership employees refusing to allow a Dealer Investigator access to review their business records.

Bremerton – A correction notice was issued to a dealership for displaying vehicles next door to their licensed location. The dealer was instructed they needed to get a license from the Washington State Department to sell from this unlicensed location or stop selling from this or any other location that is not licensed by Washington State Department of Licensing for selling of motor vehicles.

Rochester – A correction notice was issued to a dealership for failing to refund excess excise/sell license fees.

Spokane – A correction notice was issued to a dealer for conducting on off-site sale without obtaining on off-site permit as required.

Shoreline – A dealership was issued a correction notice for allowing the owners brother to take a vehicle for a consignment from a consumer on behalf of the owner. This brother was not an employee of the dealership. (Only a licensed dealer and their employees may contract with consumers.) The brother then transferred the vehicle into his name and never paid the consumer. The owner, after being confronted, took responsibility and then paid the consumer for the vehicle.

Dealers who transact dealer business by consignment shall obtain a consignment contract for sale and shall comply with the applicable provisions of RCW 46.70.

Bellevue – A dealership was issued a correction notice for not having a nonresident affidavit for the purchase of a vehicle included in the vehicle to apply to their home state’s vehicle licensing authority to register the vehicle in their own name.

Seattle – A dealership was issued a correction notice after the dealer investigator reviewed a sample of the dealership’s vehicles files were audited at its licensed location. The five sales transactions that were reviewed did not contain a full-page copy of the licensing sub-agency transfer registration. Additionally, these same transaction files did not contain documentation as to how the dealership acquired these sold vehicles. I.e. Bill of Sale, Auto Auction receipt etc.

Bellevue – A dealership was issued a correction notice for taking deposits on vehicles they had in inventory and depositing the funds into an account that was not actually labeled as a trust account which is required by RCW 46.70.180(9) Dealership was instructed to contact their financial institution to ensure the account is appropriately titled as a trust account.

Seattle – A dealership was issued a correction notice for failure to apply for a sold vehicle into the name of their consumer within 45 days of date of sale.

Aberdeen – A dealership was issued a correction notice for failure to maintain a dealer temporary permit log.

Vancouver – A dealership was issued a correction notice for failure to apply for a sold vehicle into the name of their consumer within 45 days of date of sale.

Vancouver – The Department of Licensing has become aware that this dealership has not occupied their licensed place of business since approximately June of 2008. In fact, another dealership has occupied the location since that time.

In addition, their dealership has sold t least 32 vehicles since you have abandoned your licensed location. Obviously, these sales could not have been conducted at your place of business.

Lakewood – A dealership was issued a correction notice for failure to have in their vehicle files the proper paperwork of where they acquired their vehicles (for example a wholesale order).

In addition, the dealership failed to refund overcharges of licenses fees charged to the customer if the refund was less than a $1.00 when there is no minimum and any and all overcharges must be refunded.

Olympia – A dealership was issued a correction notice for failing to pay off a lien holder within the close of the second business day after acquisition of the vehicle by the dealer.

Union Gap – A dealership was issued a correction notice for using a transporter plate on a vehicle for personal transportation.

Renton – A dealership was issued a correction notice for purchasing an insurance destroyed vehicle, rebuilding it, and failing to have the vehicle inspected by the WSP and applying for title in the dealerships name prior to offering for sale.

Auburn – A dealership was issued a correction notice for not being in compliance with the established place of business requirements. The dealership is not open during your posted hours of operation. The sign, which states, “Be Right Back” with telephone numbers, has been posted for several weeks, even during hours when the dealership is not open, such as 7:00 am. The sign does not give the date of closure, the time that you left, and the expected time of return.

Buckley – A dealership was issued a correction notice for failing to retain a copy of the computer-generated title application processed by a licensing agent showing fees paid to the state must be kept for each retail sale of a vehicle which involves the transferring of title.

Oak Harbor – A dealership was issued a correction notice for issuing five temporary permits on one vehicle that was sold by the dealership.

Federal Way – A violation notice was issued to an individual for selling vessels and miscellaneous vehicles without obtaining the appropriate business license.

Richland – A dealership was issued a cease and desist order to stop selling motorcycles without a miscellaneous dealers license and using their dealers license.

Kennewick – A dealership was issued a correction notice for selling a vehicle and failing to unconditionally reject or accept the financed sale within four business days.

Lynnwood – A dealer was issued a correction notice for failing to transfer title within 45 days of date of sale, in addition to issuing a second temporary permit when the circumstances of the sale did not qualify under law for the dealer to issue to second temporary permit.

Spokane Valley – A dealer was issued a correction notice for failing to retain copies of advertisements for one year.

Spokane Valley – A dealer was issued a correction notice for selling a motorcycle from their residence and not their licensed location. In addition, the dealer failed to transfer the title into the purchaser’s name.

East Wenatchee – An individual was issued a violation notice for conducting motor vehicle dealer activity without a vehicle dealer’s license.

Centralia – An individual was issued a violation notice for conducting motor vehicle dealer activity without a vehicle dealer’s license

Yakima – An individual was issued a violation notice for conducting motor vehicle dealer activity without a vehicle dealer’s license.

Yakima – A dealer was issued a correction notice for selling an ORV and failing to apply for the title in the purchasers name within fifteen days following the sale.

Seattle – An individual was issued a violation notice for conducting motor vehicle dealer activity without a vehicle dealer’s license.

Yakima – A dealer was issued a correction notice for issuing a 45 day temporary permit for vehicles sold to out of state customers.

In addition the dealer sold a vehicle that did not comply with standards set by the state of Washington or the federal government pertaining to the safety of vehicles. Dealer sold a vehicle that had a defective wheel that was replaced by the dealership. The wheel and control arm had mismatched bolts, nuts, and missing cotter pin.

Spokane – A dealer was issued a correction notice for dealer plate misuse. The dealer allowed a customer to use their dealer plate in lieu of a dealer temporary permit on a vehicle the sold to the customer.

Lynnwood – A dealer was issued a correction notice for misrepresenting the vehicles’ Implied Warranty of Merchantability due to the fact that they had the customer sign a waiver of Implied Warranty however the vehicle was sold with a warranty.

Colville – A business was issued a violation notice for conducting miscellaneous vehicle dealer activity without the required miscellaneous vehicle dealer license.

Longview – A statement of charges was issued to a dealer for taking a vehicle on consignment, selling the consigned vehicle and then allegedly forging the signatures of the registered or legal owner on the Washington certificate of title.

Everett – A dealer was issued a correction notice for failing to report within 10 days that the dealership was no longer in business.

Wauna – A wrecking company was issued a violation notice for conducting motor vehicle dealer activity without the required vehicle dealer license.

Buckley – A Statement of charges was issued to a wrecking yard for selling six salvage vehicles and failing to disclose the vehicles as rebuilt on the purchase orders.

Tacoma – A wholesale motor vehicle dealer was issued a Statement of Charges for being licensed as a wholesale motor vehicle dealer and selling 23 vehicles retail. Potential Fine $ 23,000.00

Auburn – A Retail dealer was issued a Statement of charges for selling six vehicles that had been totaled out by an insurance company and failing to disclose on the face of the purchase order that the vehicles had been rebuilt. Potential Fine $6,000.00

Mount Vernon – A dealer received a Statement of charges for failing to make a specific, written disclosure on the face of the purchase order agreement or upon a separate form prior to, or at time of purchase, stating that the two thousand dollar deposit was non-refundable.

Tacoma – A dealer received a Statement of charges for not having a Miscellaneous Dealer license and sold 39 travel trailers through their retail motor vehicle dealer license. Potential fine $39,000.00

Everett – A dealer was issued a correction notice for failure to maintain business hours, to have salespersons available for contact and failure to have unobstructed business signage displayed.

Everett – A dealer received a correction notice for failing to have the required signage of nature of business. When the location was certified for licensing there was large vinyl lettering on the window near the front entry door indicating “Vehicle Sales”. That or any other signage is no longer there.

Spokane – An individual received a violation notice indicating that they are conducting motor vehicle dealer activity without the required vehicle dealer license.

Fife – A dealer received a correction notice for failing to disclose to their customers on the purchase order that the documentation service fee is negotiable.

Tacoma – A dealer received a correction notice for failing to disclose on a separate line from the documentation service fee from the title and registration fees.

Yelm – An individual received a violation notice for conducting motor vehicle sales without being properly licensed as a motor vehicle dealer.

Pasco – An individual received a violation notice for conducting motor vehicle sales without being properly licensed as a motor vehicle dealer.

Kennewick – A dealer received a correction notice for selling a vehicle that did not meet tire safety standards for tread wear as outlined in RCW 46.37.425

Lynnwood – A dealer received a correction notice for selling a vehicle that carried a balance arranged by the dealer but there was no formal retail installment contract prepared and the dealer failed to disclose the interest rate charge, amount financed, the total amount to be paid after all scheduled payments were made, and the total sale price including all payments made and the down payment. This is also a violation of the Federal Truth and Lending Act.

Auburn – A dealer received a correction notice for having on four different vehicle sales multiple signed purchase contracts with different sale dates. The previous contracts and paperwork were not voided out as required before the new paperwork was completed.

Olympia – A dealer received a correction notice for allowing a contract employee to use their dealer plate.

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From the Executive Director

This next Legislative session may once again be a difficult session for the automotive industry. Last session, our members, and non members alike, did a fantastic job responding to all of the Call to Actions we sent out. With that said, the Legislature has instructed the Attorney Generals Office to sit down with all of the stake holders involved to see if there was a middle ground we could all agree on in regards to the Used Car Buyer Bill of Rights. Our first meeting is in late October.

I have been working diligently on collecting statistical data to show that there is no need for any type of a Used Car Buyer Bill of Rights. If another bill is introduced, it will take all dealers, not just members, to once again come together and stand united educating your Representative and Senator that such legislation will not only have a harmful affect on our industry, but that this would be a senseless piece of legislation considering there are already laws in place to protect the consumer. Please watch for faxes and emails that we will be sending to keep you abreast of this potential legislation and respond appropriately.

Interestingly enough, we may have an additional piece of legislation that we may need to deal with. Instead of going through the details of what this piece of legislation may require, I would like to share with you “the story behind” what even caused this potential piece of legislation.

For years, I have explained to dealers that when you wholesale a vehicle, deliver the vehicle on a wholesale order only and not collect payment at the time, that holding on to title really gives the dealer no real “security”. If you choose to conduct wholesale sales this way, you are risking not getting paid, having to surrender title in some circumstances, and then it becomes a civil issue between you and the dealer you wholesaled the vehicle to.

The Story: A vehicle dealer sells a vehicle wholesale to another dealer. The dealer sells the vehicle to a consumer. Consumer has proof they paid the dealer and dealer never pays the dealer who wholesaled the vehicle to him, so obviously no title transfer took place.

When I spoke with the dealer that was holding title and explained that the law is fairly clear that the consumer is due the title, the dealer refused to turn over the title. This is after I provided copies of all the laws that substantiated my position. In fact, to date the dealer still has not turned over the title even after receiving a letter from the Department of Licensing and speaking with the Attorney Generals Office.

It is because of this ONE dealer, that a task force is in the process of being put together by a House of Representative with the intent of introducing a piece of legislation that would attempt to change the way the wholesale business is conducted in the state of Washington. Even though laws already exist to protect consumers in these situations.

Although I am part of this task force, and staying on top of the issue, I want to remind each of you, if you CHOOSE to sale wholesale without collecting payment, you are making a CHOICE to take on the risk.

My point is it only takes one non complying dealer, one consumer with a contact in the Legislature, to create potential legislation that we, as a group, must fight.

I would like to reach out to our members now and request that if you have any Legislative Contacts to please contact me with the information as soon as possible.

On a different note, I would like to extend a warm thank you to those dealers that choose to be a part of your association. The association is just not here for Legislative protection, I am here to help with any and all issues that you face as a dealer. I spend most of my time helping dealers with communicating with an unhappy customer, issues they are having with the Department of Revenue, issues they may be having with the Department of Licensing and just answering your everyday business questions in general.

A lot of our members were unaware of these services we provide; however over the last year we have seen a 200% increase in the amount of calls I receive to assist dealers in the above mentioned matters.

It is because of this that for those non members that call into the association office I am now not able to really help as much as I may want too. We have put new office procedures into effect that when you call in with a technical question, you will be asked if you are a member and staff will confirm prior to forwarding your call to me. This is in an effort to be sure we are making YOU the member a priority. After all, you pay to be a part of this association, it is just unfortunate that when it comes to the work that the Board of Directors and I do benefit not just members, but all dealers. If there was a way I could make it so that only members benefit from our Legislative efforts, trust me I would be the first to introduce that piece of Legislation!

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REMINDERS - Used Vehicle Dealers Must Comply With Lemon Law

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ADVERSTISING IN A NUTSHELL

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