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Vehicle Industry News VIN 2009–28
Smog Certification for Diesel-Powered Vehicles

New Legislation

Effective January 1, 2010, smog emission inspections are required for diesel-powered vehicles manufactured in or after 1998, and have a gross vehicle weight rating (GVWR) of 14,000 pounds or less for original registrations and transfers.

Biennial smog inspection requirements will be phased-in beginning with a registration renewal date of April 30, 2010.

Procedures
A smog check inspection is required:

http://www.dmv.ca.gov/vehindustry/vin_memos/vin2009/09vin28.pdf

The 4-year rule that currently exempts gas-powered vehicles, four or less model-years old, from transfer smog is not applicable to diesel-powered vehicles. A smog transfer fee will not be due for diesel-powered vehicles as they must obtain a smog certificate.
•
The 6-year rule that currently exempts gas-powered vehicles, six or less model-years old, from biennial smog is not applicable to diesel-powered vehicles. A smog abatement fee will not be due for diesel-powered vehicles as they must obtain a smog certificate.
•
Exemptions applicable to gas-powered vehicles located in non-biennial counties, family transfers, and obtaining a smog for a transfer within the past 12 months, will also apply to diesel-powered vehicles.
New vehicle dealers may certify on the New Vehicle Report of Sale (REG 397) that new diesel-powered vehicles with a GVWR of 14,000 pounds or less, meets emission requirements.

Vehicles that fail the smog check inspection may be eligible for the Consumer Assistance Program (CAP). Qualified consumers will be eligible for financial assistance for emission-related repairs or they can choose to retire their high-polluting vehicle.

All questions regarding diesel-powered vehicle smog requirements should be referred to the Bureau of Automotive Repair (BAR), at 1-800-952-5210, or visit www.smogcheck.ca.gov.
Background

Effective January 1, 2010, legislation expands the motor vehicle smog inspection program to include “diesel-powered” vehicles manufactured in 1998, and newer, with a GVWR of 14,000 pounds or less for original registrations, transfers, and renewals.

Distribution

Notification that this memo is available online, at www.dmv.ca.gov under Publications was made via e-mail alert in December 2009.

Contact
Call the DMV Customer Communications Section, at (916) 657-6560 for further clarification of this memo. Upon request, this document can be produced in Braille or large print.
JEAN SHIOMOTO, DMV Deputy Director Communication Programs Division

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Occupational Licensing Industry News OLIN 2009–19 California Car Buyers’ Protection Act of 2009

New Law
Effective January 1, 2010, the California Car Buyers’ Protection Act of 2009 becomes law.

This law increases dealer, lessor-retailer, and auto broker license fees and requires a vehicle dealer to pay off the outstanding loan or lease balance on any vehicle accepted in trade within 21 calendar days.

The law further prohibits a dealer from selling, consigning for sale, or transferring a vehicle accepted in trade before the outstanding loan or lease balance has been paid.
Increases
All original and renewal dealer and lessor-retailer license fees will increase by $25. The fee to add or renew an auto broker endorsement to an existing license will increase by $50. The new fees are:
•
Dealer license, original $175
•
Dealer license, renewal $125
•
Auto Broker, original $100
•
Auto Broker, renewal $ 75
New Information

Dealers are required to pay the outstanding loan or lease balance, or other specified amount agreed upon when the vehicle acquired through purchase or in trade has a prior loan or lease balance. The dealer must pay the legal owner or lessor shown on the ownership certificate the balance or specified amount within 21 calendar days of purchasing or obtaining the vehicle in trade.
The dealer is not in violation of this section if notice of rescission of the contract is given reasonably and in good faith promptly, but no later than 21 days after the date the vehicle was purchased or obtained in trade, and the contract is thereafter rescinded on any of the grounds in Civil Code §1689.

Background

The California Car Buyers’ Protection Act of 2009 is a new law effective:

January 1, 2010.

The act increases licensing fees and imposes certain requirements when a dealer obtains a vehicle in trade with a prior loan or lease balance.

References

California Vehicle Code (CVC) §4453.5
California Civil Code §1689

Distribution

Notification that this memo is available online, at dmv.ca.gov/pubs/olin/olin.htm was made via E-Mail Alert Service in December 2009 to the following:
•
Dealers
•
Lessor-Retailers
•
Registration Services

Contact
Questions regarding this memo may be directed to the Occupational Licensing Operations Unit, at (916) 229-3126.
MARY GARCIA, Chief Occupational Licensing

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A
ANTIQUE – a general description of an object having special value because of it’s age (usually more than 100years old) in automotive terms it tends to refer to a vehicle that was built prior to 1915.
ALL WEATHER – a term used in the twenties and thirties to denote a four door convertible sedan.

B
BAQUET- the literal translation is ‘bath tub’. It refers to cars at the beginning of the century in Europe with two rows of raised seats (single seats or divans) similar to those used in turn of the century horse drawn carriages. Baquets were generally without front doors, a top or a windshield. In the United States the term ‘touring’ was often used. Also see Phaeton
BARCHETTA – an open top car dedicated to racing without doors or a top and with uniform and streamlined bodywork. It could have one or two separate seats.
BAROUCHE- a carriage term very rarely used for automobiles. The driver sat in an open front seat with two couples facing each other inside a closed cabin. There was a folding top over the rear seat.
BATEAU – The shape of the rear end of open-topped racers at the beginning of the century, which looked like the hull of a boat. Also see Boattail.
BERLINE – a sedan
BOATTAIL – the tapered form of the rear-end. The term literally describes the shape of the vehicle tail, which resembled the bow of a boat. Popular in racing. Also see Bateau
BONNET – English term for panel that covers the engine. Americans call it a hood.
BOOT – English term for panel that covers the rear luggage compartment. Americans call it a trunk.
BROUGHAM – in early motoring this broad term signified a closed car for two or four persons. In later forms it was often found to describe a car with an open front driver’s compartment. When coupled with sharp lines and flat surfaces it may be called a ‘Panel Brougham’.
BULLNOSE – a term in use in England during the 1920′s to indicate a type of radiator, which supposedly resembled the nose of a bull! E.g.: Bull-nose Morris.
BUSINESS COUPE – a simple two-door coupe without a rumble seat, such as used by doctors, bankers and salesman etc. Everyday transport for the middleclass.

C
CABRIOLET – generally this means a convertible car with windows. However, this term has changed meaning significantly over the years and can even mean different things in different countries. During the 1920′s and 30′s in Europe it meant an open car with a top, two doors and four seats, which was most often derived from a sedan. The equivalent in Great Britain was called a drop-head coupe while the English used the term Cabriolet to mean a four door open top car. Concurrently in the United States, the term used was Convertible coupe. Today Cabriolet describes open top cars derived from a sedan or coupe. It could also be understood to mean an open top car with two rows of seats with just two doors. Although in reality it can have any number of doors and windows.
CHUMMY – In England from 1920 and up, a chummy was an open top car. The vehicle was usually a 2+2 i.e.: two full-sized seats up front with two small ‘occasional’ seats in the rear.
CLASSIC – according to the Classic Car Club of America this term refers only to specific or important marques built between 1925 and 1942 (with certain post-war exceptions). It is however applied today by owners of almost any collectible car more that is more than 25 years old.
CLUB COUPE – a two-door closed car with a rear seat.
COACH-LINE – a painted accent line on the body of a car. Modern equivalent is the pinstripe.
CONCOURS (d’Elegance) – a gathering or show of the elegant.
CONVERTIBLE – In short, a car with a folding top and windows! In the US from 1927 on, the term was used to mean a car with a soft, retractable top was hooked permanently to the bodywork, and therefore not removable like a roadster’s was. Other requisites were side windows that opened and the absence of any framework above the waist of the car apart from the windshield. The most common example of the was therefore called a convertible coupe these had two doors, whilst cars with four doors were called convertible sedans. In both cases four or five people could be seated.
CONVERTIBLE ROADSTER – a convertible is an open car with windows; a roadster is an open car without windows, hence a term which contradicts itself. Used by Lincoln, Chrysler and others about 1930 to emphasize sportiness.
CONVERTIBLE VICTORIA – a four passenger two door two-window cabriolet.
COUPE – a closed car with two doors for two or three people and a roofline that generally curves at the back. May also have a rudimentary rear seat in which case it is usually called a Club Coupe.
COUPE CHAUFFEUR – chauffeur driven car with passengers fully enclosed and the chauffeur exposed. Body has a blind rear quarter.
COUPE DeVILLE – or “town coupe”, applied imaginatively to various body styles Usually a four passenger two-door car with a permanently closed roof over the rear seats and a removable top covering the front seats. See Sedanca
COUPELET – a term used especially by Ford to describe a Model T two seater Cabriolet.
COUPE LIMOUSINE – chauffeur driven car with the passengers fully enclosed and the chauffeur exposed. Body has rear quarter windows.
CYCLE FENDERS – usually a front and sometimes a rear fender similar to that used on a motorcycle which follows the curvature of the wheel.

D
DeVILLE EXTENSION – a sliding roof over the front seat with side arms that folded back into the remaining roof thus producing a Sedanca configuration in metal rather than the usual fabric.
DICKEY – or Rumble seat. An extra external seat that could be accessed by lifting a forward-opening ‘trunk-like’ lid in the rear of the car.
DROPHEAD COUPE – British term for the equivalent of the American convertible, or the European Cabriolet.
DUAL COWL – a design of touring car, which saw the cab, divided into two compartments, front and back. Separated with a rear windshield mounted on a folding cowl, which covers part of the rear compartment.

E
ESTATE CAR – a station wagon, or four-door, four passenger car with an extended roof line plus a gate or hatch in the rear for increased cargo capacity.

F
FAUX CABRIOLET – a fixed head coupe made to resemble a cabriolet.
FENCERS MASK – The term used to describe a type of radiator grille design from the 1930′s which resembled a fencers mask for it’s shape and fine weave of the grille.
FIXED HEAD COUPE – a closed coupe.
FORDOR – Ford’s name for a four door sedan.

G
GOUTTE d’EAU – a body with a ‘tear drop’ design, flowing down to the rear.
GOVERNOR – a device used with the carburetor to restrict maximum engine speed.
GRAN TURISMO (GT) – grand touring
GP – Grand Prix or Great Prize.
GT – Grand Touring

H
HARD TOP – a removable top to replace the soft-top. It typically made from fiberglass, although sometime steel and usually painted the same color as the body of the car.
HOOD – American terminology for the sheet metal panel covering the engine.
HOOD – British terminology a convertibles soft-top.
HORSELESS CARRIAGE – a term defined by the Horseless Carriage Club of America applying to cars built before 1915 (See also Antique)

I J K

L
LANDAU- a partially opened limousine. The open part was usually in the front where the driver sat.
LANDAULET – a Landau limousine in which the section over the rear seats also opens or folds down.
LIGHT – a small window as in sidelight, quarterlight, skylight etc.
LIMOUSINE – a chauffeured sedan often with a longer wheelbase and usually with a division between the driver and the passengers. The rear compartment had luxurious features with controls for heating, radio and opening and closing the glass or wood division.

M
MARQUE – a make or brand of car.
MM – Mille Miglia, a 1000 mile Italian road race from 1927 to 1957.
MOTHER-IN-LAW SEAT – a single sideways-facing rear seat. Usually found in coupes or cabriolets.

N

O
OPERA COUPE – a two door closed car with a small folding seat beside the driver. This allowed easy passage to a rear seat for two, usually offset to the right in left-hand drive cars.

P
PANEL BROUGHAM – see BROUGHAM
PHAETON – it means opened top car with four seats. French term taken from the Greek “Phaeton” who drove the chariot of his sun-god father, Helios. A small four door open touring car.

Q
QUARTER WINDOW or QUARTER LIGHT- the small triangular side window to the rear most of the rear door glass, and foremost of the front door main glass.

R
RAGTOP – See soft-top
RIB – a bow made of metal or wood that makes up part of the rigid or semi-rigid frame of a convertible top.
ROADSTER – The term roadster has had several meanings depending on the origin and period. One thing everyone agrees on is that they did not have a top. Most recently the term has meant sportscar, generally it’s accepted to mean, small and powerful two-seater sportscar.
ROLL BAR – A metal bar fashioned in such a way to protect the driver in the event the car rolls over.
RUNABOUT – A small light two seater. Runabout was mainly an American term to indicate small open car, very basic and cheap. Predecessor to the Roadster.

S
SEDANCA – A type of early body design in which the top extended for a quarter of a circle and covered only the passengers in the rear seats.
SHOOTING BRAKE – This is a European term used typically to describe a car that is a cross between a two-door sports coupe and an estate car. Made popular by the well heeled as they wanted a vehicle to move larger than normal amounts of cargo (even dogs when grouse shooting) without having to resort to a dowdy estate car or station wagon!
SPORTIF – a very tight or narrow type of Phaeton.
SPORT COUPE – a closed coupe with a cloth top and sometimes landau irons resembling a convertible.
SPYDER – a light two-seater roadster (also called a Spider). The European term for the English Roadster.
SS – Super Sport
STATION WAGON – a utility car built of wood, typically with four doors.
SUBURBAN – a seven passenger limousine
SUICIDE DOOR- a rear hinged door, typically for the front seat. At speed any chance opening would cause the door to whip backward with great force.
SUPERLEGGERA – super light

T
TARGA – a coupe with a removable roof panel (or panels) from above the heads of the front seat occupants.
THREE POSITION COUPE – A Coupe de Ville which may be presented as a fully closed coupe, a deVille Coupe with the front section open or a fully collapsible convertible.
TONNEAU – the rear compartment of a car body, usually an open touring body. i.e. Phaeton
TONNEAU COVER – soft cover used on parked roadsters to protect the cab from rain when the top is down.
TORPEDO – a long wheelbase very smooth touring car with flat panel’s low doors and sides that offered no protection from the weather. They succeeded Tourers and Phaetons.
TOURING CAR – a four door open car, four seats and without windows. US equivalent of the European Baquet.
TOWN CABRIOLET – A town car in which the covered rear section converts to an open car.
TOWN CAR – a chauffeur driven car with the passengers fully enclosed and the chauffeur exposed. Also known as a Sedanca de Ville or Town Brougham
TUDOR SEDAN – Ford’s term for a two door.
TWIN SIX – Packard’s first twelve-cylinder car introduced in late 1915 and produced until 1920. When Packard reintroduced the new V12 in 1932, the term was reused for that first year only.

U
UNDERSLUNG – an automobile whose frame passed underneath the axles. Used primarily by the American Motor Company of Indianapolis from 1907 to 1914

V
VICTORIA – a close coupled two-door sedan or an enlarged coupe with a rear seat. Also a four door open car with folding top over the rear seat only.
VINTAGE – formerly a term describing cars built between 1915 and 1925 but now used broadly, especially in England, to include cars manufactured between 1920 and 1942.
VIS A VIS – a term used generally to describe a seating arrangement where the passengers sit facing each other.

W
WEYMANN – a patented body in which wooden frame members were joined by metal strips preventing the wood from touching and squeaking.
WINDOW STRAP – a strap attached to the base of a window, which passed inside the body up to the sill, and into the interior of the car. It could be used to pull the window up. Holes in the strap could be buckled against an interior pin to hold the window at various elevations.
WINDSCREEN – English term for windshield
WING – English term for fender
WINTER FRONT – a patented name for a shuttered radiator cover by the Pines Co., which could be opened and closed to regulate engine temperature.
WOODY – a motor vehicle incorporating natural finished wood for structure and all exposed parts of the body. The term has been loosely applied to any car, which uses wood coverings, even over metal.

XYZ

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Accident / Damage Indicator —

CARFAX receives information about accidents in all 50 states, the District of Columbia and Canada. Different information in a vehicle’s history can indicate an accident or damage, such as: salvage auction, fire damage, police-reported accident, crash test vehicle, damage disclosure, collision repair facility and automotive recycler records. Not every accident or damage event is reported and not all reported are provided to CARFAX. Details about the accident or damage event when reported to CARFAX (e.g. severity, impact location, airbag deployment) are included on the Vehicle History Report. CARFAX recommends you obtain a vehicle inspection from your dealer or an independent mechanic.

Airbag Deployment —

Occurs when the driver, passenger or side airbag has been used or deployed during a crash or other incident. If an airbag has been deployed, it must be replaced by a qualified technician. Have this car inspected by a mechanic prior to purchase. Use CARFAX Airbag Tips to make sure this vehicle’s airbag system is functional.

Auction Disclosures or Announcements —

Dealers and institutions (i.e. fleet companies, rental car companies, and manufacturers) sell millions of cars at auction each year. Sellers often provide disclosures about a vehicle’s damage, mileage, or repair history. These disclosures are made available to potential buyers in pre-sale lists and in auction announcements.

Auto Auction —

Auto auctions provide CARFAX with odometer readings for vehicles bought and sold at auction. Approximately 31% of used cars sold at dealerships are purchased at auto auctions.

Automotive Recycler —

Vehicles sold at an automotive recycler are often totaled by insurance companies. The majority of these vehicles are 1) rebuilt and sold as a complete vehicle, 2) dismantled and sold for parts, or 3) scrapped and sold as metal. On occasion, they also handle vehicles with no specific damage history.

Bonded Title —

A title is bonded when the owner has no proof of ownership during the titling process. The bond remains in effect for three years or until the vehicle is no longer registered in the state.

Built to Non U.S. Standards —

Vehicle previously registered or titled outside of the U.S. and may not comply with U.S. safety and emissions standards.

Canadian Damage Report —

CARFAX receives damage reports for many accidents occurring in the following Canadian Provinces: Ontario, Alberta, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland, Yukon territories, Northwest territories, and Nunavut. These reports may be completed following an accident or other incident. Some include a damage claim amount. This amount represents physical damage to the vehicle and depending on the accident, damage to other vehicles and/or property. It does not include expenses like towing, a rental car or any medical related items.

Canadian Total Loss Vehicle —

An insurance company declares a vehicle a total loss if the estimated repair cost, plus the salvage value of the damaged vehicle, exceeds the cash value of the vehicle before it was damaged. A Canadian vehicle declared a total loss may require a technical inspection before it can return to the road.

Certified Pre-Owned Vehicle —

Many manufacturers have certified pre-owned programs that promote used vehicles that meet high standards defined by the manufacturer. Each program has a different certification process.

Collision Repair Facility —

A collision repair facility specializes in repairing vehicle damage caused by accidents and other incidents. A vehicle inspection completed by your dealer or a professional inspector is recommended.

Commercial —

Vehicle was registered for business purposes.

Crash Test —

Vehicles used in crash tests are supposed to be sold as junk vehicles. Institutions that test these vehicles disclose this information to CARFAX to help ensure they do not end up back on the road.

Curbstoning —

A curbstoner is a person who purchases vehicles at volumes that require a dealer license and then poses as a private seller to sell to unsuspecting buyers for a large profit. Curbstoning is illegal in most States. CARFAX analyzes a vehicle’s history for specific events to determine if a vehicle is potentially at risk for curbstoning. For instance, a vehicle that has been sold at auction but not issued a new title during a given period of time. Please see the CARFAX Curbstoning Tips for other ways to identify a potential curbstoner.

Damage Disclosure —

When the owner discloses to a DMV or other CARFAX source that the vehicle sustained damage. The extent of damage can range from minor to severe. CARFAX recommends you have this vehicle inspected.

Date Reported —

Refers to the date when the transaction occurred.

Dealer Service Company —

Dealer Service Companies assist auto dealers in managing their inventories. These companies offer data services in the areas of mass marketing, maintenance notification, unit labeling and advertising. Not all dealer service companies report information to CARFAX.

Dismantled Title —

The vehicle sustained major damage to one or more major component parts and the cost of repairing the vehicle for safe operation exceeds its fair market value. When a Dismantled title is issued, the vehicle may be used only for parts or scrap metal. It cannot be re-titled or returned to the road.

Exceeds Mechanical Limits —

A vehicle with a 5-digit odometer cannot accurately track mileage after 99,999 miles because the odometer rolls over. This title is the result of a seller certifying under the Federal Odometer Act, that the odometer reading EXCEEDS MECHANICAL LIMITS of the odometer.

Exempt Vehicle —

In most states, odometer law requires that vehicles less than 10 years old report odometer readings. Vehicles over 10 years old are often exempt from this requirement and do not need to provide odometer readings.

Failed Emissions Inspection —

The emissions check performed during a vehicle inspection indicated the vehicle was emitting more than allowable emissions standards and/or had missing or modified parts. Repeated failed emissions records can indicate engine problems and CARFAX recommends you have the vehicle inspected.

Federal Odometer Act —

The Federal Odometer Act requires a seller to disclose the vehicle’s mileage on the title when ownership is transferred. Congress enacted this Act to prohibit odometer tampering and to protect consumers from mileage fraud. Under this act, sellers must disclose any issues with the vehicle’s odometer. These disclosures translate into the Exceed Mechanical Limits and Not
Actual Mileage titles.

Fire Damage —

CARFAX receives information on vehicle fires from most U.S. jurisdictions. These events are taken from the actual fire department reports compiled at the scene.

Fire Damage Title —

The vehicle sustained major damage due to fire. In most states, fire damage titles are issued when the cost of repairing the vehicle for safe operation exceeds its fair market value.

First Owner —

When the first owner(s) obtains a title from a Department of Motor Vehicles as proof of ownership.

Fleet Management Company —

Fleet Management Companies manage the financing, insurance, maintenance and repair of corporate or government fleet vehicles. Fleet companies are typically self-insured. Several fleet companies provide CARFAX with the repair and damage history of their vehicles.

Fleet Vehicle —

Vehicle was registered or sold to a company that manages vehicle fleets.

Flood Damage Title —

States issue flood titles when a vehicle has been in a flood or has received extensive water damage.

Ford or Lincoln Mercury Recall —

The Ford Motor Company provides Carfax with recall information regarding safety, compliance and emissions programs announced since 2000 for a specific vehicle. For complete information regarding programs or concerns about this vehicle, please contact a local Ford or Lincoln Mercury Dealer.

General Comments —

CARFAX reports display important information in the General Comments column of the Detailed Vehicle History. Comments will vary, depending on the information provided by the source.

Grey Market Vehicle —

Vehicle previously registered or titled outside of the U.S. and may not comply with U.S. safety and emissions standards.

Gross Polluter —

A Gross Polluter is a vehicle that fails an emissions inspection with below-standard scores. These vehicles can pollute as much as 18 times more than a vehicle that passes an emissions inspection. It is illegal to drive or sell a gross polluting vehicle in California, and it cannot be registered with the DMV. CARFAX recommends checking the latest Vehicle Inspection Report to confirm the proper repairs have been completed before purchasing.

Hail Damage Title —

The vehicle sustained major damage due to hail. In most states, hail damage titles are issued when the cost of repairing the vehicle for safe operation exceeds its fair market value.

Information Source —

CARFAX receives data from thousands of data sources. The information source refers to the source or provider of the vehicle history information reported in the Vehicle History Report.

Inspections —

Many states or counties require annual or biennial emissions and/or safety inspections. Odometer readings are collected at the time of the inspection.

Junk Title —

A Junk Title is issued on a vehicle damaged to the extent that the cost of repairing the vehicle exceeds ~ 75% of its pre-damage value. This damage threshold may vary by state. The majority of states use this title to indicate that a vehicle is not road worthy and cannot be titled again. Some states treat Junk titles the same as Salvage.

Lease —

When someone leases a car from a dealer, the dealer actually sells the vehicle to a leasing company. The leasing company then collects payments for the vehicle from the new owner for 24, 36, 48 or more months. A leasing company can be an independent car dealer or a car manufacturer.

Lemon Law Vehicle —

A vehicle with major problems that has been repurchased by or had its price renegotiated with the manufacturer. The state marks its official records or issues a title brand for lemon law vehicles. Laws vary by state as to the specific requirements for a “lemon”. Most manufacturers issue some buybacks that are not the result of Lemon Laws but rather a courtesy.

Lien —

A lien is a legal right to the vehicle by a third party to ensure the repayment of a debt or other financial obligation. This often occurs due to an auto loan. Other types of liens include mechanic’s liens and child support liens. If you are buying, check with the seller to make sure the lien has been resolved.

Loan —

A loan is when a person borrows money from a financial institution or other type of lender with an agreement to pay back the full amount plus interest over a period of time. Loans are usually guaranteed with assets like a vehicle or home. Until the loan is paid off, the lender will have a lien on these assets and has the right to repossess them if the terms of the loan are not met.

Major Parts Removed —

When a vehicle has three or more major parts removed by an automotive recycler.

Manufacturer Buyback or Lemon —

A DMV or a state agency marks an official document or issues a Manufacturer Buyback/Lemon title when a vehicle has been repurchased by the manufacturer. Not all states issue manufacturer buyback titles and the specific requirements for a lemon law vehicle vary by state.

Manufacturer Recall —

Automobile manufacturers issue recall notices to inform owners of car defects that have come to the manufacturer’s attention. Recalls also suggest improvements that can be made to improve the safety of a particular vehicle. Most manufacturer recalls can be repaired at no cost to you.

Manufacturer Vehicle —

Manufacturer vehicles are vehicles put up for sale by the manufacturer. These vehicles are typically only available to dealers at special auctions. These vehicles have generally been registered as lease or rental vehicles.

Manufacturer-Recommended Maintenance Schedules —

Automobile manufacturers provide recommended maintenance schedules for each of their models. These schedules inform owners of maintenance that should be performed on a vehicle at specific mileage milestones. These schedules are available in the owner’s manual or at Edmunds.com.

Mileage Inconsistency —

If a more recent odometer reading is less than an older reading but CARFAX is uncertain whether the discrepancy is a rollback or a clerical error, then CARFAX calls it a “Mileage Inconsistency”. In this case, you should verify the mileage with your dealer or a qualified mechanic.

Motor Vehicle Dept. —

Motor Vehicle Departments issue both titles and registrations to vehicle owners. Each title or registration record on a CARFAX report does not necessarily indicate a change in ownership. New titles and registrations can be created for name, address and lien holder changes; ownership changes; vehicle status changes; registration activity; title corrections; and lost titles.

NICB —

The National Insurance Crime Bureau is a not-for-profit organization whose mission is to combat insurance fraud and vehicle theft for the benefit of both insurance companies and the public.

New Owner Reported —

When a vehicle is sold to a new owner, the Title must be transferred to the new owner(s) at a Department of Motor Vehicles.

Non-Profit —

Vehicle was registered by a “not for profit” agency or business.

Not Actual Mileage Title —

When the seller certifies, under the Federal Odometer Act, that the odometer reading does not reflect the vehicle’s actual mileage. This may occur because the odometer was tampered with, broken, or replaced.

OCRA —

The Oficina Coordinadora De Riesgos Asegurados S.C. (OCRA) is a Mexican not-for-profit corporation organized to detect, investigate and deter vehicle theft and insurance fraud for the good of its members and the public. It manages and controls databases on stolen vehicles and exported vehicles for the benefit of the insurance industry, law enforcement agencies and the public. OCRA obtains vehicle information entirely from other sources and relies on those sources for the accuracy and reliability of this information. Therefore, OCRA accepts no responsibility or liability for any error or omission in this report. OCRA is proud to assist CARFAX customers in their efforts to better understand a vehicle’s history.

Odometer Rollback —

If a more recent odometer reading is less than an older reading, then the odometer may have been tampered with and “rolled back.” CARFAX analyzes the mileage history and the sources of this information to indicate a potential odometer rollback.

Odometer Rollover —

Older vehicles often have 5-digit odometers that roll over to zero when the mileage exceeds 99,999.

Ownership History —

CARFAX defines an owner as an individual or business that possesses and uses a vehicle. Not all title transactions represent changes in ownership. To provide estimated number of owners, CARFAX proprietary technology analyzes all the events in a vehicle history. Estimated ownership is available for vehicles manufactured after 1994 and titled solely in the US including Puerto Rico. Dealers sometimes opt to take ownership of a vehicle and are required to in the following states: Maine, Massachusetts, New Jersey, Ohio, Oklahoma, Pennsylvania and South Dakota. Please consider this as you review a vehicle’s estimated ownership history.

Personal Use —

Vehicle was registered by the owner for private or personal use.

Rebuilt/Reconstructed Title —

A Rebuilt/Reconstructed vehicle is a salvage vehicle that has been repaired and restored to operation. These vehicles are often severely damaged before they are rebuilt and refurbished parts are typically used during reconstruction. In most states, an inspection of the vehicle is required before the vehicle is allowed to return to the road.

Relocation —

When a vehicle is moved from one state to another with no change of ownership.

Rental —

Vehicle was registered by a rental agency.

Repossession —

When a repossession occurs a vehicle owner fails to make loan payments, and the financial institution holding the title takes possession of the vehicle.

Salvage Auction Record —

Most vehicles sold at Salvage auctions were declared totaled by insurance companies. Most of these vehicles have sustained significant damage but there are some exceptions. For instance, recovered stolen vehicles are often declared a total loss regardless of the actual damage. Rebuilders and Recyclers purchase these vehicles at auction with intentions to rebuild them or dismantle them for parts.

Salvage Title —

A Salvage Title is issued on a vehicle damaged to the extent that the cost of repairing the vehicle exceeds ~ 75% of its pre-damage value. This damage threshold may vary by state. Some states treat Junk titles the same as Salvage but the majority use this title to indicate that a vehicle is not road worthy and cannot be titled again in that state. The following eleven states also use Salvage titles to identify stolen vehicles – AZ, FL, GA, IL, MD, MN, NJ, NM, NY, OK and OR.

Scrapped —

Vehicles that have been dismantled and/or crushed and should not return to the road.

Service Plan Company —

Service Plan Companies market extended warranty plans to buyers of both new and used cars as mechanical breakdown insurance. Information is collected from service plan companies when they issue contracts and when they pay repair claims. Not all service plan companies report information to CARFAX.

Stolen Vehicle —

A vehicle is reported stolen when it is reported to a state DMV or an insurance company as missing. It is important to verify the status of a stolen vehicle with NICB before purchase to protect yourself. You could be charged with buying a stolen vehicle, especially if it appears that you may have had knowledge that the vehicle was stolen. You may also lose the vehicle without compensation for the purchase price. You can contact NICB to verify a vehicle’s stolen status by calling 800-447-6282 x 2 or by completing the NICB web form.

Structural / Frame Damage —

In most cases, a vehicle is inspected for structural or frame damage, depending on the body design, after an accident or other incident. All levels of accidents from minor to severe can cause structural / frame damage and in most cases it can be repaired. Having a structural inspection before purchase is recommended.

Taxi —

Vehicle was registered as a taxi or “for hire” vehicle.

Title Issued —

A state issues a title to provide a vehicle owner with proof of ownership. Each title has a unique number. Each title or registration record on a CARFAX report does not necessarily indicate a change in ownership. In Canada, a registration and bill of sale are used as proof of ownership.

Title Washing —

Title Washing is the process through which a vehicle’s title is altered to conceal information that would normally be included. This can be accomplished by either physically altering printed documents or reapplying for a title without disclosing its prior history. Since the CARFAX database retains information about branded titles from all 50 states and the Canadian provinces, the CARFAX Report may help uncover potential title washing.

Total Loss Vehicle —

An insurance or fleet company declares a vehicle a total loss when a claim exceeds ~ 75% of its pre-damage value or if the vehicle is stolen and not recovered. This damage threshold varies by company. These companies typically take possession and obtain the title. Not all total loss vehicles result in a DMV-reported branded title. This may occur when an insurance company’s definition of a total loss is different than the state DMV’s definition for a branded title or when the owner of the vehicle is a self-insured company, like a fleet or rental company.

U.S. Privacy Laws —

The U.S. Driver’s Privacy Protection Act (DPPA) of 1994, among other laws, restricts the use of personal information such as name and address, to specific purposes. It has therefore always been CARFAX’s policy to focus its reporting on vehicles, not people.

Vehicle ID No. (VIN) —

This 17 character number is unique to each vehicle. It identifies characteristics of the vehicle, including manufacturer, year, model, body, engine specifications, and serial number.

Vehicle Reacquired —

A vehicle that has been repurchased by the manufacturer. Manufacturers may choose to buy the vehicle back from a customer after repeated repair attempts or to promote customer satisfaction.

Vehicle Sold With Damage —

Several companies provide data to CARFAX about their fleets. To disclose the true condition of the vehicle, these companies occasionally sell vehicles from their fleets with damage rather than undertake the repairs themselves.

Verified Odometer Rollback —

When an odometer rollback is reported to and verified by a state or province law enforcement agency.

Garage Insurance – Used Car Dealers and Repair Shops Watch Those Symbols
By Wake Clinard
Wake Clinard
Level: Basic

Garage insurance is a much misunderstood policy form. Many professional insurance agents are confused about exactly when to use it and more importantly exactly how. You can use a garage liability policy to protect a used car dealer, often referred to as dealer’s insurance, or you can use this same form to protect an automotive repair shop or to set up body shop insurance. The trick is to know the symbols. If you own a car dealership or an automotive repair shop and are purchasing insurance for your business, it is advisable that you find an agent who specializes in the garage insurance form to help you with this purchase so you don’t end up with the wrong form and perhaps find yourself without coverage after a large loss.

As I mentioned earlier, both types of businesses, auto repair and or body shops and used car dealers both need the garage policy. But exactly what kind of operations are covered in these policies is driven by the symbols shown on the policy. This is very important. If your business is automotive repair or body work but your policy is set up with symbols that would apply to a car dealership, you could find yourself without coverage in the event of a liability loss.

So how do you know if you have the correct symbols and thus the correct form? Pull out your garage policy and look at the first page. Beside each type of coverage, usually to the left, there will be a least one two digit number between 21 and 31. These symbols will describe what is protected by the coverage shown beside that symbol. Here is a list of the most common symbols and what each one protects:

Symbol 21 Any auto
Symbol 22 All owned autos
Symbol 23 Owned private passenger autos only
Symbol 24 Owned autos other than private passenger
Symbol 25 Owned autos subject to no fault laws
Symbol 26 Owned autos subject to Uninsured Motorists law
Symbol 27 Specifically described autos
Symbol 28 Hired autos only
Symbol 29 Non-Owned autos used in the Garage Business
Symbol 30 Autos Left for Service/Repair/Storage
Symbol 31 Autos on Consignment

As you have probably figured out, if you are an automobile dealer and you have symbol 30 on your policy, you would find yourself without coverage. So why not just put symbol 21 on all coverages? Well, since code 21 is the broadest coverage, you would have to pay more for this insurance policy and in some cases you might be purchasing insurance protection that you didn’t really need.

Take some time to look at your policy carefully and review the symbols for each line of coverage to make sure that they are appropriate for the work you do. If you need help with this process, consult your agent. If you agent doesn’t specialize in businesses needing garage policy, ie dealers insurance and auto repair shop insurance, then find one who does. This protection is just too important to leave up to an agent who is practicing on the job learning on your policies.

Wake Clinard is the President of Clinard Insurance Group, a full service insurance agency located in Winston Salem, NC. Wake is dedicated to helping businesses involved in the automobile industry from used car dealers to repair and body shops to auto parts stores. Clinard Insurance is the go to market for used car dealers in North Carolina, South Carolina, Georgia, Tennessee and Virginia.

You can read Wake’s blogs and access help with your Garage Insurance by visiting his Used Car Dealer site at http:http://www.theautodealershelper.com or by visiting him on the web at http://www.clinardinsurance.com You can also get help with your Garage Insurance policy by calling, toll free, to 877-687-7557.

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