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dmv car dealer school
OL memo directory

gotplates car dealer forms kit
and they have it on e-bay
what a clever idea

the red flags rule
for car dealers
goes live on 12-31-2010

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January Dealer Renewal Notices

January 2010 dealer renewal notifications were not issued.
The error has been identified and corrected.
Renewal notifications will be issued as soon as possible.

Penalty fees for all January dealer licenses renewals will be waived; however, dealers must still renew within the 30-day renewal grace period per California Vehicle Code (CVC) §11717(c).

License Renewal Procedures
Dealers requiring renewal must:

Visit the department’s website for licensing information at: www.dmv.ca.gov/vehindustry/ol/dealer.htm.

Complete the Renewal Application (OL 45) form available at: www.dmv.ca.gov/forms/ol/ol45.htm.

Review the mandatory dealer education requirements in the Vehicle Industry Registration Procedures Manual available at: www.dmv.ca.gov/pubs/reg_hdbk_pdf/toc.htm.

Access dealer education providers at: www.dmv.ca.gov/vehindustry/ol/dlr_edu_provider.htm.

Renew dealer license plates using the Application for License Plates, Stickers, Registration Card (OL 22) available at: www.dmv.ca.gov/forms/ol/ol22.htm.

Contact their local inspector prior to license renewal if they have added a branch office or changed a location, firm name, or ownership.

Mail the renewal application and accompanying forms to:
Department of Motor Vehicles
Occupational Licensing Section
PO Box 932342 MS L224
Sacramento, CA 94232-3420

Additional Information

Dealers with license plates that are lost, stolen, or need to be surrendered, must complete a Statement of Lost, Stolen, or Surrendered Special Plates (OL 247) available at: www.dmv.ca.gov/forms/ol/ol247.htm.

Dealer license renewal status is updated daily and can be verified on the department’s website at: https://mv.dmv.ca.gov/olinq2/welcome.do.

Background

Normally, courtesy dealer license renewal notices are sent in advance. Due to an error identified, January 2010 notices did not generate.

Distribution

Notification that this memo is available online at www.dmv.ca.gov/pubs/olin/olin.htm
was made via e-mail alert service in January 2010 to the following:

Dealers

Contact

Questions regarding this memo may be directed to the Occupational Licensing Firms Unit, at (916) 229-3126.

MARY GARCIA, DMV Chief Occupational Licensing

++++++++++++++++++++++++++++++++++++

we make it simple for you

dmv renewal with express mail delivery $85.

gotplates.com

800-901-5950

our car dealer pre-licensing class

recently held at a local car dealership

was surprised by a visit from the dmv police

four plainclothes dmv investigators in black unmarked chrysler 300′s

arrived at this local dealership for what they described as a ” dmv spot check ”

they explained this unannounced visit to the dealership by dmv investigations staff

was part of a dmv effort to ensure compliance by local dealers to existing dmv regulations

the dmv police fanned out and inspected all of the vehicles at this small dealership

the dmv police inspected the entire location & the sales office

the dmv police requested access to the secured deal jackets in the owners office

the owner of the dealership was not present at the time of this ” dmv spot check ”

these dmv police are part of a team of 230 dmv investigation staff throughout california

they were courteous & professional, knowledgeable & willing to listen to my questions

we discussed:

the differences between dmv investigations & dmv inspectors

the buyer’s guide posting requirements from the FTC

the signage requirements and our three gotplates.com dealer office signs

the red flag rules for car dealers offering credit to buyers

the recent dmv red flags memo directing dealers to become red flag compliant

the need for posted business hours at each retail location

the car buyer bill of rights provisions

our pre-licensing dealer class was actually enhanced by this ” dmv spot check ”

the dmv police visit placed emphasis on the retail car dealer rules and the importance

of each car dealer to keep the office in order, signs posted as required & dmv paperwork secured

this local car dealership did well with its ” dmv spot check ” by dmv investigations

good dealer education is the crux of dmv rules compliance

comprehensive training and an understanding of the dmv rulebook

as it pertains to your car dealership is what we are all about

+++

our conclusion:

the ” dmv spot check ” by the dmv police for dmv rules compliance is a great idea

keep your dealership in good working order with our certified dmv dealer education

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@dmvgotplates

_________________________
OPINION of EDMUND G. BROWN JR. Attorney General DIANE E. EISENBERG Deputy Attorney General
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________________________________________________________________________
TO BE PUBLISHED IN THE OFFICIAL REPORTS
OFFICE OF THE ATTORNEY GENERAL
State of California
EDMUND G. BROWN JR.
Attorney General
No. 08-804
December 31, 2009

THE HONORABLE NOREEN EVANS, MEMBER OF THE STATE ASSEMBLY, has requested an opinion on the following question:
Is the single document requirement for automobile sales contracts satisfied if the document consists of multiple pages that are attached to each other and integrated by means such as inclusive sequential page numbering (e.g., “1 of 4,” “2 of 4,” etc.)?

CONCLUSION
The single document requirement for automobile sales contracts is satisfied if the document consists of multiple pages that are attached to each other and integrated by means such as inclusive sequential page numbering (e.g., “1 of 4,” “2 of 4,” etc.).

ANALYSIS Under California’s Automobile Sales Finance Act (ASFA),

1 automobile sales contracts must contain certain terms and disclosures

2 for the protection of consumers.

3 In addition, certain provisions of such contracts are required to be prominently displayed in fonts of specified size, and in specified locations and sequences, again for the protection of consumers. On top of that, regulated sales contracts are required to be reproduced as a “single document,”

4 so that the necessary terms and notices may not be concealed from consumers by being shunted to an unseen appendix. The extensive formalities and requirements are mandatory,

5 and a contract that does not substantially conform to the requirements is unenforceable.

6 1 Civ. Code §§ 2981–2984.6. 2 Civil Code section 2982 provides that a conditional sale contract subject to the ASFA must contain disclosures mandated by federal Regulation Z, 12 C.F.R. §§ 226.1– 226.48 (2009). Regulation Z implements the Truth in Lending Act, which is found at 15 U.S.C. §§ 1601–1667f. 3 See, e.g,. Cerra v. Blackstone, 172 Cal. App. 3d 604, 608 (1985) (“The legislative purpose in enacting the [ASFA] was to provide more comprehensive protection for the unsophisticated motor vehicle consumer.”). 4 Civ. Code § 2981.9 (part of the ASFA).
Although our analysis focuses on automobile sales contracts, we note that the same language appears in other consumer sales statutes, and we have no reason to believe that our analysis would not apply to them as well. See Civ. Code § 2985.8 (part of the Vehicle Leasing Act, Civ. Code §§ 2985.7–2994); Civ. Code § 1803.2 (part of the California Retail Installment Sales Act). 5 Civ. Code § 2982(m) states that the required terms “may” be printed according to the specified regulations.

However, experts in the field and judicial decisions uniformly construe these consumer-protection rules as mandatory. See, e.g., Justice William Masterson (Retired), Justice Elizabeth Baron (Retired) & Louise LaMothe, California Civil Practice Business Litigation, § 58:11 (Thomson Reuters 2009); Cynthia L. Fatica, California Transactions Forms: Business Transactions Vol. 5, § 34:33 (Thomson Reuters 2009); Kunert v. Mission Fin. Serv. Corp., 110 Cal. App. 4th 242, 248 (2003). 6 See Kunert v. Mission Fin. Serv. Corp., 110 Cal. App. 4t h at 248. 2 08-804

Taking all of the rules into account, an automobile sales contract must now be approximately 24 inches long (printed on both sides) in order to contain all of the required provisions in their required sizes. This is an unwieldy size for a business document, and incompatible with standard office printing and reproduction machines. This incompatibility leads to significant trouble and expense for automobile dealers, as well as for those consumers who need to make or transmit copies of their sales contracts.

We have been asked to determine whether the single-document rule would be satisfied if the document were to consist of multiple pages that are attached to each other and are properly integrated by appropriate means, such as inclusive sequential page numbering that presents the page numbers as “1 of 4,” “2 of 4,” and so forth. In order to answer this question, we apply well established rules of statutory construction, looking first at the plain language of the relevant statutes with the aim of ascertaining the Legislature’s intent.

7 To that end, we turn to Civil Code section 2981.9, which sets forth some of the requirements for conditional sale contracts governed by the Automobile Sales Finance Act: Every conditional sale contract subject to this chapter shall be in writing and, if printed, shall be printed in type no smaller than 6-point, and shall contain in a single document all of the agreements of the buyer and seller with respect to the total cost and the terms of payment for the motor vehicle, including any promissory notes or any other evidences of indebtedness.

8 Orr v. City of Stockton, 150 Cal. App. 4th 622, 629 (2007); see also Dyna-Med, Inc. v. Fair Empl. & Hous. Commn., 43 Cal. 3d 1379, 1386-1387 (1987).
8 Emphasis added. See also Civ. Code § 2985.8(a) (“Every lease contract shall be in writing and the print portion of the contract shall be printed in at least 8-point type and shall contain in a single document all of the agreements of the lessor and lessee with respect to the obligations of each party.”); Civ. Code § 1803.2 (“[E]very retail installment contract shall be contained in a single document that shall contain . . . [t]he entire agreement of the parties . . .”)

There is no definition in the ASFA of the term “single document.” Nor do we find the term defined in other statutory schemes. Therefore, we look to the usual and ordinary meaning of the words, bearing in mind the context in which they are used.

9 The most relevant definition of “single” in this context is “a separate individual member of a large class of similar or identical objects.”

10 The most relevant definition of “document” is “an original or official paper relied upon as the basis, proof, or support of something.”

11 Thus, the term “single document” means a separate or individual official paper. Nothing in this definition suggests that the entirety of the document must be contained on one page or on one sheet of paper. There is also no such suggestion in the few cases arising under consumer protection laws in which the rule is discussed. In Kroupa v. Sunrise Ford, the Court of Appeal decided that when a consumer traded in two vehicles, received a rebate from the dealer, and entered into a vehicle lease, all as part of the same negotiation, the three occurrences constituted a single transaction that should have been memorialized in a single document.

12 Other documents contained information about the rebate and the trade-ins, which affected the financing terms of the lease, but the lease did not. The absence of a single document that contained all the parties’ agreements with respect to their obligations was held to constitute a violation of the single document requirement.

13 The Court did not state, however, that the required information all had to be contained on one sheet of paper. Earlier, in Morgan v. Reasor Corp., the California Supreme Court held that the single document requirement in the Unruh Act was not met where an installment contract and a promissory note were not physically attached to each other.

14 Implicit in this holding is the notion that separate pages physically attached to each other may constitute a single document.15 9 See Dyna-Med, 43 Cal. 3d at 1387.

10 Webster’s Third New International Dictionary of the English Language
(Unabridged) 2123 (Philip Babcock Gove, ed. in chief, Merriam-Webster Inc. 2002). 11 Id. at 666. 12 Kroupa v. Sunrise Ford, 77 Cal. App. 4th 835, 843 (1999) (as modified, Jan. 20, 2000). 13 Id. 14 Morgan v. Reasor Corp., 69 Cal. 2d 881, 892 (1968).

15 The holding in Morgan is also consistent with a prior opinion issued by this

Currently, the federal Truth in Lending Act (provisions of which are incorporated by reference into the ASFA

16 does not include a single document requirement.

17 But case law construing a previous version of the Truth in Lending Act suggests that such a requirement was understood to be part of the earlier law, and some of these cases describe the requirement. For example, in finding a disclosure statement that simply said “refer to note” to be inadequate, the Ninth Circuit Court of Appeals stated: We think that this provision [former 15 U.S.C. § 1639(b)] means that the required disclosures can be made by including all required information in the instrument of indebtedness, not that some of the information can be disclosed in the disclosure statement while other information is disclosed in another document. The whole purpose of the Truth in Lending Act is to provide meaningful disclosure to a borrower. Such a goal is not met if the borrower must examine several documents to learn the terms of the loan agreement.

18 It is apparent that these authorities deem the purpose of the single document rule to be the facilitation of the consumer’s review of all of the parties’ agreements before the consumer signs the sale or lease contract, so that the consumer has complete and accurate information. The rule also helps to avert later disputes about the terms of the parties’ final agreement.

While a single-sheet document, which forecloses the possibility of pages becoming detached, may serve these objectives well, the single document rule does not require that the document consist of only one sheet of paper.

In 45 Ops.Cal.Atty.Gen. 8 (1965), we assumed without discussion that a contract entered into pursuant to the Unruh Act would be violated if “a deed of trust that was attached as part of the contract were detached from the rest of the document by means of tearing along perforations or removal of staples.” Id. at n. 9. 16 See Civ. Code § 2982.

17 Under federal Regulations M and Z, disclosures must be made “clearly and conspicuously in writing, in a form that the consumer may keep.” See 12 C.F.R. § 213.3 (Reg. M); 12 C.F.R. §§ 226.5, 226.17, 226.31 (Reg. Z). 18 Ljepava v. M. L. S. C. Prop. Inc., 511 F.2d 935, 942 (9th Cir. 1975). 5 08-804

Our conclusion is bolstered by a recent decision of the California Supreme Court, Alan v. American Honda Motor Co., Inc., in which the Court construed a particular rule of court to include a single document requirement, even though the term “single document” does not appear in the language of the rule.

19 As the Court stated, [W]e see no reason why the clerk could not satisfy the single-document requirement by attaching a certificate of mailing to the file-stamped judgment or appealable order, or to a document entitled “Notice of Entry.” Obviously a document can have multiple pages. But the rule does not require litigants to glean the required information from multiple documents or to guess, at their peril, whether such documents in combination trigger the duty to file a notice of appeal.

20 A rule of court is not drafted by the Legislature, and the rule at issue in the Alan case pertains to litigant protection, rather than consumer protection in the commercial arena. We nonetheless find it significant that, in applying ordinary principles of statutory construction to the rule ,

21 the Court’s view of the function of the single document requirement was the same as that of the Ninth Circuit in Morgan. And we find both cases relevant to, as well as consistent with, our understanding of the ordinary meaning of the term “single document.” Accordingly, we conclude that the single document requirement for automobile sales contracts is satisfied if the document consists of multiple pages that are attached to each other and integrated by means such as inclusive sequential page numbering (e.g., “1 of 4”, “2 of 4”, etc.). *****

19 Alan v. Am. Honda Motor Co., Inc., 40 Cal. 4th 894, 903–905 (2007) (holding that the phrase “a document” in Cal. Rule of Court 8.104, which governs the timeliness of appeals in specified circumstances, means “a single, self-sufficient document satisfying all of the rule’s conditions”). 20 Id. at 905 (emphasis added). 21 Id. at 902 (ordinary principles of statutory construction govern interpretation of the Cal. Rules of Court). 6 08-804

http://ag.ca.gov/cms_attachments/opinions/pdfs/o546_08-804.pdf

The pros and cons of going diesel
By Lucy Lazarony • Bankrate.com

Looking for a car with super fuel economy? You may want to consider a diesel.

Diesel cars and trucks deliver great fuel economy, 20 to 30 percent better than comparable vehicles with gasoline engines.

And while today’s diesels may not be squeaky-clean, they’re a far cry from the noisy and smelly pollution hogs that they used to be.

Here’s a closer look at the pros and cons of going diesel on your next auto purchase.

One of the biggest advantages of choosing a diesel car or truck is fuel economy. A diesel’s extra 20 to 30 percent of fuel efficiency makes a difference. You’ll use less fuel as you drive and fill up your tank less often. Fewer trips to the pump means more money stays in your wallet. Just ask any diesel driver.

“People who own them love them and tend to spread the gospel about them,” says Tony Fouladpour, a spokesman for Volkswagen of America.

“First and foremost, it’s the fuel economy. On the New Beetle it’s almost 50 miles per gallon. You can drive from Chicago to New York without stopping for fuel. They’ve got tremendous driving range.”

The fuel savings on a diesel is so impressive that you’ll make up the extra cost of the engine in just a few years.

Take a look at this example from Walter McManus, an auto analyst at J.D. Power and Associates. He compared the cost of buying a 2004 Jetta GLS with a 2.0-liter gasoline engine and the cost of buying a 2004 Jetta GLS with a 1.9-liter turbo diesel.

The price of the gasoline Jetta is $19,460. The cost of the turbo diesel Jetta is $20,480, a difference of $1,020. But the turbo diesel Jetta gets much better fuel economy, 46 miles per gallon, compared to the gasoline Jetta’s 31 miles per gallon.

Let’s say you drive 15, 000 miles a year. According to the U.S. Energy Information Administration, (week of June 21, 2004), the national average cost per gallon of diesel was $1.90; the average cost per gallon of regular was $1.94.

Driving the turbo diesel Jetta, you’d save $383 in fuel costs each year. In three years, you’d save $1,149 in fuel costs, $129 more than the cost of your diesel engine.
Diesels in America
Passenger cars
Volkswagen Golf
Volkswagen Jetta
Volkswagen Jetta Wagon
Volkswagen New Beetle
Volkswagen Passat ( April 2004)
Mercedes E-320 sedan (April 2004)

Sport utility vehicles
Volkswagen Touareg SUV (2004)
Chrysler Jeep Liberty ( Fall 2004)

Pickup trucks
Chevy Silverado
GMC Sierra
Dodge Ram
Ford E-series, F-series

Here’s one more thing to consider. A turbo diesel Jetta holds its value better than a gasoline Jetta. McManus estimates that a 3-year-old turbo Jetta will be worth nearly $300 more than a 3-year-old Jetta with a gasoline engine.

So even if you only owned your turbo diesel Jetta for three years, you’d save $1,149 in fuel costs and pick up an extra $300 when you sold the car. Your total savings for going diesel after just three years is $1,449, which more than makes up for the extra $1,020 you paid for the engine.

That’s pretty impressive. But many diesel car drivers would balk at the notion of keeping their cars for a measly three years.

With proper maintenance it’s not unusual for a diesel engine to run for 250,000 miles. And some diesel car owners are determined to get every penny of fuel savings out of their never-say-die engines.

“You’ll see these ancient Mercedes diesels that just don’t quit. They keep running and running and running,” says Paul A. Eisenstein, publisher of the automotive Web site, TheCarConnection.com. “It’s almost a matter of pride for diesel owners.”

Another advantage of buying a diesel is driving performance. Anyone who likes to zip away from a stop sign will like a diesel engine’s pep.

“You take off quicker,” McManus says. “It will be noticeably peppier and more fun to drive. So not only do you have better fuel economy, you have better performance, more of a sporty kind of drive.”

Diesels are also great at towing. So if you need to haul heavy loads with your car or truck, you may want to consider a diesel. A diesel handles a heavy load a lot better than a comparable vehicle with a gasoline engine. And that’s why larger, heavy-duty pickup trucks from Chevrolet, GMC, Dodge and Ford are available with diesel engines.

If you’re worried about the noise associated with driving a diesel car, don’t be. Modern diesel engines are a lot quieter than diesels 20 years ago. Today’s diesel engines are almost as quiet as gasoline engines.

“The engine is slightly noisier than a gasoline engine but they’re getting real close now. It’s really tough to tell,” says Robert Larsen, director of the Center for Transportation Research at Argonne National Laboratories.

The biggest downside to driving a diesel car has to do with emissions. Diesel cars may be cleaner than they used to be but they’re still dirtier than gasoline cars, and a whole lot dirtier than a hybrid. And there’s still a bit of a smell.

“What you see and smell out of the tailpipe is typically worse than with a gasoline engine,” says Larry Webster, technical editor at Car and Driver.

Diesel cars spit out more particulates — tiny particles of soot — and more oxides of nitrogen (NOx), which contribute to local smog.

But because of their excellent fuel economy, diesel cars also burn less fuel and emit less carbon dioxide (CO2) than gasoline cars.

“There’s a trade-off. You emit a little more particulate and oxides of nitrogen, NOx, but a lot less C02,” Webster says. “Burning less fuel is better in the long run, but some people are worried about NOx and particulates contributing to smog.”

Here’s another thing you should think about before you buy a diesel — where will you buy fuel?

Fueling up on the highway is easy — all you have to do is find the nearest truck stop. Finding a neighborhood service station that sells diesel fuel may be more difficult. According to Diesel Technology Forum, only 30 percent of neighborhood retail service stations sell diesel fuel.

“If you buy a diesel, make sure diesel fuel is conveniently available in your area,” Eisenstein says. “A lot of people don’t like to go to truck stops because that means they have to gas up in line with big 18-wheelers.”

A final downside to buying a diesel is you don’t have that many vehicle choices. Only 3.6 percent of passenger cars in America are available with diesel engines. They include the Volkswagen Golf, Jetta, Jetta Wagon, Passat and New Beetle. And Mercedes, which stopped selling diesel sedans in the late 1990s, launched a diesel version of its E-320 sedan.

Early in 2004, Volkswagen rolled out the Touareg V10 TDI, a diesel sport utility vehicle. Chrysler Jeep Liberty will be available with diesel engines this fall.

http://www.bankrate.com/brm/news/auto/20030804a1.asp

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

+++++++++++++++++++++++++++++++++++++++++++++++++

we offer the best car dealer education in all of california

prices start as low as $ 100.

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thx
charlotte

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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

+++++++++++++++++++++++++++++++++++++++++++++++++

we offer the best car dealer education in all of california

prices start as low as $ 100.

we make it simple for you

800-901-5950

good luck
thx
charlotte

rexhead.net
gotplates.com
redflagclass.com
autogodfather.com
ezdealerbond.com

you may follow us on twitter:@autogodfather

www.carfax.com

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.