PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 02-12-096.
Title of Rule: Chapter 308-66 WAC, Motor vehicle dealers and manufacturers.
Purpose: This is an every four-year review of the WACs per the Governor's Executive Order 1997-02.
Statutory Authority for Adoption: RCW 46.70.160.
Summary: Review for necessity, effectiveness, efficiency, clarity, intent, cost and fairness.
Name of Agency Personnel Responsible for Drafting: Chuck Coach, 2000 4th Avenue West, Olympia, WA 98502, (360) 664-6453; Implementation and Enforcement: Administrator, 2000 4th Avenue West, Olympia, WA 98502, (360) 664-6451.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: These amendments and additions are designed to give the consuming public and the dealer industry and [a] more precise and better understanding of the rules. In addition, it is the intent to incorporate rules related to internet vehicle sales and obtaining dealer plate waivers.
Proposal Changes the Following Existing Rules: Proposal makes existing rules easier to understand.
No small business economic impact statement has been prepared under chapter 19.85 RCW. No fiscal impact or additional duties imposed on dealerships.
RCW 34.05.328 does not apply to this rule adoption.
Hearing Location: Dealer and Manufacturer Services, 2000 4th Avenue West, Olympia, WA 98502, on July 14, 2004, at 10:00 a.m.
Assistance for Persons with Disabilities: Contact Linda Whipple by July 9, 2004, TDD (360) 664-8885 or (360) 664-6455.
Submit Written Comments to: Kim Johnson, Dealer and Manufacturer Services, P.O. Box 9039, Olympia, WA 98507-9039, fax (360) 586-6703.
Date of Intended Adoption: August 3, 2004.
May 20, 2004
Fred Stephens
Director
OTS-7180.1
AMENDATORY SECTION(Amending WSR 02-12-062, filed 5/31/02,
effective 7/1/02)
WAC 308-66-110
Definitions.
For the purpose of
administering chapter 46.70 RCW, the following terms shall be
construed in the following manner:
(1) "Offering" the sale of a vehicle shall include the distribution by any means of a list, with or without prices, of vehicles for sale.
(2) "Soliciting" the sale of a vehicle shall include an offer to effect the purchase or sale of a vehicle on behalf of another person.
(3) "Normal business hours" or "reasonable times" shall
include, but not be limited to, the hours from 10:00 a.m.
through 4:00 p.m. for five days each week. ((All hours during
which the place of business is open for the purpose of
bartering, trading or selling vehicles are normal business
hours or reasonable times as long as the dealer is open for
business at regular intervals. Whenever)) When a dealer
closes ((his)) the place of business during normal business
hours, a sign must be posted on the main door of the business
stating the time that ((he)) the dealer will next be open for
business ((or where he)) and how the dealer may be contacted
provided that this is not permission to routinely avoid
maintaining normal business hours.
(4) An "employee" of a dealer is a person on the payroll who appears on the record of the dealer as an employee for whom social security, withholding tax, and all deductions required by law have been made.
(5) A "broker" shall mean any person((, partnership,
corporation, or association)) acting independently, who for a
commission, fee or any other form of compensation arranges or
engages in the wholesale or retail purchase, sale or lease
with option to purchase, of a vehicle.
(6) ((An "employee identification card" is a card that
may be issued by a licensed dealer to an employee, identifying
such employee as being in the employ of such dealer. The
department will prescribe the form of the card.)) A "vehicle
dealer identification card" is a card, prescribed by the
department and issued by a licensed dealer, that is used to
identify the principal of a dealership, including a corporate
officer, a partner of a partnership, or sole proprietor, or a
member of a limited liability company, or an "employee," for
purposes of driving a vehicle bearing dealer license plates.
(7) A "demonstration permit" is a permit issued by a dealer to a prospective customer entitling the prospective customer to operate a particular vehicle for demonstration purposes.
(8) Current service agreement - The agreement between a
vehicle manufacturer or vehicle distributor and a seller,
stipulating that the seller will provide warranty adjustments
for the owners of ((said)) that manufacturer's or
distributor's new vehicles which qualify for adjustments under
the ((said)) manufacturer's or distributor's warranty.
(9) New vehicle warranty - The warranty extended by a manufacturer or distributor to the first retail purchaser.
(10) "Closing" shall mean the process of completion of sale transaction.
(11) "Completion of sale" in the case of a consigned
vehicle shall mean that the purchaser has possession of the
vehicle, all liens against the vehicle are paid, the seller
has ((sale)) the proceeds of sale, and ((warranty of)) title
to the vehicle has been ((accomplished)) transferred to the
retail purchaser.
(12) "Listing" shall mean a contract between a seller of
a used mobile/manufactured home and a listing dealer for the
dealer to locate a willing purchaser ((of)) for that ((listed
used mobile/manufactured)) home.
(13) (("Seller," as it relates to listing dealers, shall
mean a person who lists a used mobile/manufactured home with a
listing dealer.
(14) "Purchaser," as it relates to listing dealers, shall mean a person who agrees to buy a used mobile/manufactured home listed through a listing dealer.
(15))) "Consignment" shall mean an arrangement whereby a vehicle dealer accepts delivery or entrustment of a vehicle and agrees to sell the vehicle on behalf of another.
(((16) "Consignee" shall mean a vehicle dealer who
accepts delivery or to whom a vehicle is entrusted for the
purpose of sale on behalf of another.
(17) "Consignor" shall mean a person who delivers or entrusts a vehicle to a dealer for the purpose of sale.
(18))) (14) "Remanufactured" shall mean to remake or reprocess into a finished product by a large scale industrial process.
(((19))) (15) "Guaranteed title" as it relates to a
consigned vehicle shall mean a guarantee by the consignor to
convey title to the consignee upon sale of the vehicle. The
consignment agreement between the consignor and consignee
shall comply with the provisions of WAC 308-66-155.
(((20))) (16) "Used vehicle" in keeping with RCW 46.04.660, and for purposes of the requirement for a service
agreement in RCW 46.70.101 (1)(a)(vii), a vehicle will be
considered used if it meets the following requirements:
(a) It has been titled or registered to a bona fide retail purchaser/lessee for a period of 90 days or more; and
(b) The vehicle has been operated (driven) to the extent that its odometer registers 3,000 miles or more.
However, the requirements of (a) and (b) of this subsection will not apply if a bona fide retail purchaser/lessee sells, trades, or otherwise disposes of the vehicle prior to its having met those requirements. To document such an exemption, the subsequent wholesaling and retailing dealer must keep, as a dealer business record, a notarized affidavit from either the bona fide retail purchaser/lessee, or in the case of an imported vehicle, a notarized affidavit from the importer of the vehicle. That affidavit will be prescribed by the department and must confirm that the retail purchaser/lessee was a bona fide retail purchaser/lessee.
(((21))) (17) A "bona fide retail purchaser/lessee" is
one who purchases or leases a vehicle for the purpose of using
it, rather than for the purposes of resale or lease.
(18) The "principal" of a business as used herein means:
(a) The proprietor of a sole proprietorship;
(b) A partner of a partnership;
(c) An officer of a corporation; or
(d) A member or manager of a limited liability company.
[Statutory Authority: RCW 46.70.160. 02-12-062, § 308-66-110, filed 5/31/02, effective 7/1/02; 98-20-039, § 308-66-110, filed 9/30/98, effective 10/31/98; 96-19-025, § 308-66-110, filed 9/9/96, effective 10/10/96. Statutory Authority: RCW 46.70.160 and 1986 c 199 § 1. 87-01-016 (Order DLR 115), § 308-66-110, filed 12/9/86; Order MV 170, § 308-66-110, filed 7/16/73; Order 70-08-04, § 308-66-110, filed 8/6/70; Order 69-1, § 308-66-110, filed 8/28/69; Order 2, § 308-66-110, filed 1/29/68.]
(1) Each application shall contain in addition to the information required by RCW 46.70.041:
(a) The names and residential addresses of all owners of
ten percent or more of the assets of the ((firm)) business;
(b) The name and address of the principal place of
business ((of the firm));
(c) The names and addresses of each and every subagency
((of the firm)), if any;
(d) A current balance sheet of assets ((and)),
liabilities and owner's equity which shall have been prepared
within ((ninety)) sixty days of its submission, including
proof of the assets;
(e) A statement of whether or not the applicant or any
partner, member, officer, or director((, owner of ten percent
or more of the assets)) of the firm, was the holder of a
license issued pursuant to chapter 46.70 RCW which was revoked
for cause and never reissued by the department, or ((which
license was)) suspended for cause and the terms of the
suspension have not been fulfilled or assessed a monetary
penalty that has not been paid;
(f) A ((detailed)) list of all dealerships previously
operated by each person named on the application and with
which each person presently or was formerly connected or
employed.
(2) An applicant ((shall)) must appear for a personal
interview if requested by the department.
(3) The department may require a credit report for each
((party)) person named on each application for a dealer's
license.
(4) An applicant ((shall)) must provide as evidence of
leasehold or ownership interest of business location either:
(a) A copy of the rental or lease agreement between the applicant and landowner showing the business location by commonly known address, or
(b) A copy of the county assessor's record showing ownership of the business location, the applicant's name and the commonly known address.
(5) ((The)) An applicant must provide a bank reference
for verifying financial condition consisting of:
(a) The name of the applicant's bank, a person to contact at that bank concerning the applicant's financial condition, or
(b) A letter of credit current within the last ((90))
sixty days, or
(c) A flooring agreement, if with a financial institution, or
(d) A line of credit with a financial institution.
(6) The department may require an applicant ((for a
vehicle dealer license)) to provide evidence that the business
location conforms to all zoning and land use ordinances.
(7) A ((corporation)) corporate applicant ((shall)) must
provide the corporation number and corporation name issued by
the secretary of state's office authorizing the company to do
business within this state.
(8) The business name and address on the license
application and all required supporting documents must be the
same. ((The sign at the certified location must identify the
doing business as name (dba), if any, and that name shall
appear on all documents as the applicant's name. The business
telephone listing must also reflect the business name or the
doing business as name.))
(9) The applicant must provide a certification of completion in the dealer education program:
(a) At least one principal of each company applying for an original vehicle dealer license must receive certification in the dealer education program required by RCW 46.70.041 (1)(l).
(b) The department encourages as many principals of each company as possible to obtain such certification.
(c) For annual dealer license renewals, either a company principal or a managing employee may complete the continuing education program. The continuing education certificate will indicate that the dealership has fulfilled the requirement.
(d) Certifications for either original or renewal applications will be valid for twelve months.
(10) Any service agreement required by RCW 46.70.041 must be on file with the department. An acquisition or loss of a service agreement must be reported to the department in writing within ten days.
[Statutory Authority: RCW 46.70.160. 02-12-062, § 308-66-120, filed 5/31/02, effective 7/1/02; 98-20-039, § 308-66-120, filed 9/30/98, effective 10/31/98; 96-19-025, § 308-66-120, filed 9/9/96, effective 10/10/96. Statutory Authority: RCW 46.70.160 and 46.70.041. 91-20-057, § 308-66-120, filed 9/24/91, effective 10/25/91. Statutory Authority: RCW 46.70.160 and 1986 c 199 § 1. 87-01-016 (Order DLR 115), § 308-66-120, filed 12/9/86; Order MV 170, § 308-66-120, filed 7/16/73; Order 70-08-04, § 308-66-120, filed 8/6/70; Order 69-1, § 308-66-120, filed 8/28/69; Order 2, § 308-66-120, filed 1/29/68.]
(1) A dealer ((shall advise)) must inform the department
in writing of each and every:
(a) Name under which the ((firm)) dealer does business,
and
(b) Location at which the ((firm)) dealer does business.
((If there is any addition, deletion or change in the
above, the dealer shall so inform the department within ten
days of such action.)) The dealer must inform the department
in writing within ten days of any addition, deletion or change
in the name or location.
(2) A dealer shall designate one name and one location as
the principal name and principal place of business ((of the
firm)).
(a) All other names under which the dealer does business shall be designated and licensed as subagencies of that dealership;
(b) All other locations that are physically and geographically separated from the principal place of business shall be designated and licensed as subagencies of that dealership;
(((b) All other names shall be designated and licensed as
subagencies of that dealership;))
(c) If a dealer is required to obtain a subagency license
under (2)(((a)))(b) of this section, ((he/she)) the dealer
shall not be required to obtain an additional subagency
license under (2)(((b)))(a) of this section, unless ((he)) the
dealer does business under more than one name at that
subagency location;
(d) The department will not require a subagency license for a name solely due to the use of a ".com" or other URL extension in an internet address; or because a dealership uses a derivative of its licensed "doing business as" name for its internet address. The website must clearly display the licensed "doing business as" name.
(3) ((The director shall fail to renew, suspend or revoke
a subagency license of a dealership if the dealer ceases to
maintain "an established place of business" at that subagency
location.)) If the dealer ceases to maintain "an established
place of business" at that subagency location, the director
shall suspend, revoke and/or refuse to renew a subagency
license of a dealership.
(4) All temporary subagencies ((shall)) must be covered
by the bond of the dealer's principal place of business.
(5) A vehicle dealer, whether franchised or
nonfranchised, that is unable to locate ((his/her)) the
dealer's used vehicle sales facilities adjacent to or at the
established place of business need not obtain and hold a
subagency license if:
(a) The vehicle sales lot is contained within the same city block, or
(b) Is directly across the street, or
(c) Is within sight, and
(d) Its location is zoned properly, and
(e) The dealer bond covers the sales lot.
(6) If the sales lot referred to in section 5 is in sight of the principal place of business, no sign is required at that sales lot.
(7) The department may require that a dealer provide evidence that each place of business conforms to all zoning and land use ordinances.
(8) Each and every subagency license of a dealership shall automatically be deemed cancelled upon the termination, for whatever reason, of the principal license of that dealership.
(9) No license shall be issued to any applicant for a vehicle dealer or vehicle manufacturer license under a name that is the same as that of any dealer or manufacturer holding a current license issued pursuant to chapter 46.70 RCW.
(10) The sign at the certified location and the business telephone listing must reflect the "doing business as" (dba) name.
[Statutory Authority: RCW 46.70.160. 98-20-039, § 308-66-140, filed 9/30/98, effective 10/31/98. Statutory Authority: RCW 46.70.160 and 46.70.023. 91-20-057, § 308-66-140, filed 9/24/91, effective 10/25/91. Statutory Authority: RCW 46.70.160 and 1986 c 199 § 1. 87-01-016 (Order DLR 115), § 308-66-140, filed 12/9/86; Order MV 170, § 308-66-140, filed 7/16/73; Order 69-1, § 308-66-140, filed 8/28/69; Order 2, § 308-66-140, filed 1/29/68.]
(1) An applicant for a vehicle dealer license, or a licensee, who requests a waiver of any established place of business requirement(s) must submit the following to the department:
(a) All ((required)) applicable documents and fees ((for
an original application as provided for)) in RCW 46.70.041,
46.70.061, 46.70.070, ((and)) WAC 308-66-120, ((with the
exception of a leasehold agreement or evidence of real
property ownership: Provided, That if a waiver is granted to
the applicant, the applicant must provide evidence of
leasehold or real property ownership to the department before
the license will be issued)) and 308-66-140.
(b) A written request for the waiver, in the form of
either a letter or a request completed on the department's
prescribed form, which ((contains)) requires the following
minimum information:
(i) Specific nature or type of activity the applicant intends to conduct,
(ii) Specific element(s) of the established place of business requirements requested to be waived,
(iii) Detailed statement which identifies the unique circumstances necessitating the request for waiver, and,
(iv) Any other information the department may require.
(2) ((A licensee who requests a waiver of any established
place of business requirement(s) must submit the following to
the department:
(a) All required documents and fees, as provided for in RCW 46.70.061 and WAC 308-66-140, with the exception of a leasehold agreement or evidence of real property ownership: Provided, That if a waiver is granted the licensee must provide evidence of leasehold or real property ownership to the department within thirty days of waiver approval.
(b) A written request for waiver, in the form of either a letter or a request completed on the department's prescribed form, which contains the following minimum information:
(i) Specific nature or type of activity the licensee intends to conduct,
(ii) Specific element(s) of the established place of business requirements requested to be waived,
(iii) Detailed statement which identifies the unique circumstances necessitating the request, and,
(iv) Any other information the department may require.
(3))) Upon receipt by the department of all the required information, the director or the director's designee will review the request for waiver of any established place of business requirement(s) and issue a final determination in writing.
(((4))) (3) A waiver granted under section (((3))) (2)
will remain in effect only as long as the unique
circumstance(s) under which the waiver was originally granted
have not changed or until the director ((lifts)) terminates
the waiver ((for cause)).
[Statutory Authority: RCW 46.70.160. 98-20-039, § 308-66-145, filed 9/30/98, effective 10/31/98. Statutory Authority: RCW 46.70.160 and 1986 c 199 § 1. 87-01-016 (Order DLR 115), § 308-66-145, filed 12/9/86.]
(2) Examples of unlawful acts or practices as defined by
RCW 46.70.180 (1)(b), include, but are not limited to
representations such as "one hundred percent financing" if the
terms of the purchase or lease involve more than one security
agreement and payments to more than one financing institution.
When collateral in addition to the vehicle is required, it
((shall)) must be listed on the security agreement containing
the vehicle's description, not on a separate agreement.
(3) It shall be considered false, deceptive or misleading, and thereby unlawful, to advertise with words, phrases, or initials which are not clear and conspicuous and easily comprehended by persons other than those closely allied with the vehicle industry.
(a) Clear and conspicuous within an advertisement shall mean:
(i) In the case of a television advertisement, the information required to be disclosed shall be completely disclosed audibly, visually, or a combination thereof.
(A) If made visually, shall be made in a type size sufficiently large to be read with reasonable ease; shall appear on the television screen for at least seven seconds; shall be in print type of a color or shade that contrasts readily with the background; shall not be obscured by other words or images appearing on the television screen; and
(B) If made audibly, shall be spoken with sufficient deliberateness, clarity, and volume so as to be understood by the average television listener; shall not be obscured by sounds which interfere with or distract from the disclosures being made.
(ii) In the case of a radio advertisement, the information required to be disclosed shall be spoken with sufficient deliberateness, clarity, and volume so as to be understood by the average radio listener; shall not be obscured by sounds which interfere with or distract from the disclosures being made.
(iii) In the case of a printed advertisement, the information required to be disclosed shall be made in a type size which shall be sufficiently large to be read with reasonable ease and shall be made in relatively close proximity to each of the terms which require that the disclosures be made; disclosures shall be made in such color and contrast so as not to be obscured by other words or pictures appearing in the advertisement.
(b) Examples of words, phrases, or initials which are not easily comprehended by persons other than those closely allied with the vehicle industry, and that may not be used without explaining their meaning in the same advertisement, include but are not limited to: Executive; capitalized cost reduction, o.a.c., c.f., f.o.b. The words annual percentage rate may be abbreviated to read A.P.R. or apr.
(4) Examples of false, deceptive or misleading, and thereby unlawful statements or representations within the meaning of RCW 46.70.180(1) include, but are not limited to:
(a) Advertising a used vehicle for sale that is not available at the time the advertisement is placed;
(b) Advertising a new vehicle as available for immediate delivery if it is available only on order;
(c) Advertising any offer in connection with the sale of a vehicle or model or type of vehicle without disclosing any material limitations, including, but not limited to, the time limit, or that there is no time limit on the offer;
(d) Advertising using a picture:
(i) Of a new vehicle which does not substantially show the same vehicle offered for sale; or
(ii) Of a used vehicle which is not the same vehicle offered for sale;
(e) Causing an advertisement to be placed by a dealer or
dealer representative that does not identify the dealer by
((his/her)) its complete business name, or by the word
"dealer" or abbreviation "DLR";
(f) Incorporating in the dealer's name any term or designation which would have a tendency to mislead others as to the true nature of the business, such as the use of "wholesale," when a dealer's business is substantially retail, or "discount" when the price and policy of a dealer does not provide substantial discounts;
(g) Advertising a ((not-new)) vehicle manufactured
((less)) fewer than two years prior to the date of the
advertisement without designating the vehicle as "used,"
"demo," or "demonstrator." For purposes of adequate
disclosure, the appropriate quoted term must be employed. Other descriptive words, such as "executive," "lease," or
"rental" may be used in conjunction therewith, but not so as
to create ambiguity as to whether ((a said)) the vehicle is
new, used, or a demonstrator.
(h) Advertising a "rebuilt vehicle" for sale with knowledge as defined in RCW 46.70.101 (1)(b)(xi) that the vehicle is rebuilt, without clearly and conspicuously disclosing "rebuilt" in the advertisement;
(i) Advertising a specific price for a specific vehicle or model or type of vehicle without designating the number of vehicles available at that price, and;
(i) Without clearly identifying the vehicles available by complete vehicle identification number, license plate number; or
(ii) Without clearly and conspicuously stating in the advertisement that such vehicle identification or license plate number for each advertised vehicle is available from the dealer upon request, and requiring that the dealer using this method of identifying vehicles keep the media advertising copy along with the vehicle identification number or license plate number of each advertised vehicle offered for a specific price. Such records shall be retained for one year following the advertisement. Dealers shall also date and post a written copy of the advertisement text and list of vehicle identification numbers or license plate numbers in a conspicuous public area at their place of business for the duration of the vehicle's availability at the advertised price: Provided, however, That a dealer need not designate the number of vehicles available or identify the vehicles available or state in the advertisement that the identification of advertised vehicles is available upon request if, in fact, an unlimited supply of such vehicles are available for immediate delivery;
(j) Selling a particular vehicle at a higher price than advertised, regardless of trade-in allowance;
(k) Adding charges, costs, or items to the advertised price, except those allowed by statute, other than the selling price of additional equipment ordered by the purchaser, sales tax, and license fees. "Additional equipment ordered by the purchaser" shall not include options already installed on the vehicle at the time of advertising;
(l) Expressing "advertised price" as a combination of:
(i) Dollar figures and words unless all component figures and the total dollar figure is expressed; or
(ii) Dollar figures and dollar figures unless all component figures and the total dollar figure is expressed;
(m) Advertising that a new vehicle or model or type of vehicle will be leased or sold for a certain amount above or below invoice or cost without:
(i) Disclosing the actual dollar amount being referred to as "invoice";
(ii) Stating the final, total price for each vehicle, which may exclude sales taxes and license fees; and
(iii) Computing invoice as the actual cost to the dealer to get each vehicle from the manufacturer.
In computing "invoice" the dealer may include the actual cost of transportation of the vehicle from the manufacturer to the dealer, but must exclude dealer holdbacks, other manufacturer incentives, optional advertising fees, dealer overhead expenses, and other similar expenses;
(n) Advertising that a new or used vehicle is reduced in price from a former price, or that the advertised price is a percentage of dollar amount savings from a former price, or words to that effect, unless the seller actually recently advertised or has records showing that vehicle has been offered for sale at the former price;
(o) Advertising or offering:
(i) Any rebate that is not an authorized manufacturer's rebate paid directly to the consumer, which the consumer may apply to the purchase; and
(ii) Any manufacturer's rebate for which the manufacturer requires any financial participation by the dealer, without also clearly and conspicuously stating the following disclosure: "Dealer participation in this rebate program may increase vehicle price before rebate";
(p) Advertising that "any written price quote will be beaten," "any deal will be accepted," or that a dollar amount is guaranteed on any "push, pull or drag," trade-in, or words to that effect unless the dealer can clearly show through the records of the dealership that such is the case;
(q) Advertising a vehicle or model or type of vehicle as being available at "lowest cost," "best deal" or other words to that effect unless the dealer can clearly show through the records of the dealership that such is the case;
(r) Advertising an interest rate that is adjustable without clearly and conspicuously disclosing that the interest rate is adjustable;
(s) Advertising a vehicle or model or type of vehicle for sale at a financing rate which has been bought down by the dealer, without disclosing the actual annual percentage rate.
(5) No advertisement to aid, promote, or assist directly or indirectly any extension of credit may state:
(a) That a specific amount of credit or installment amount can be arranged unless the creditor usually and customarily arranges or will arrange credit amounts or installments for that period and in that amount; or
(b) That no down payment or that a specified down payment will be accepted in connection with any extension of credit unless the creditor usually and customarily accepts or will accept down payment in that amount.
(6) No advertisement to aid, promote, or assist directly
or indirectly any credit sale of a vehicle shall state the
amount or percentage of the down payment required, or that no
down payment is required, the amount of any payment or the
number of payments or the period of repayment, the amount of
any finance charge or that there is no charge for credit,
unless it states clearly and conspicuously all of the
following ((items)) terms:
(a) The cash price or the amount of the loan as applicable;
(b) The amount or percentage of the down payment required, or that no down payment is required, as applicable;
(c) The number, amount, and frequency of payments scheduled to repay the indebtedness if the credit is extended;
(d) The amount of the finance charge expressed as an annual percentage rate;
(e) The deferred payment price or the sum of the payments as applicable;
(f) The specific model or type of vehicle(s) to which the advertised offer applies; and
(g) Any other conditions material to the advertised offer.
(7) Any advertisement to aid, promote, or assist directly
or indirectly a consumer lease ((with option to purchase))
must state clearly that the advertisement offers a lease
((with option to purchase)) rather than a vehicle sale.
(8) No advertisement to aid, promote, or assist directly or indirectly any consumer lease of a vehicle shall state the amount of any monthly payment, or state a capitalized cost reduction or other payment required prior to or at consummation/delivery, unless it also states the following terms:
(a) That the transaction advertised is a lease;
(b) The total amount due prior to or at consummation/delivery;
(c) The number, amount, and due dates or period of scheduled payments under the lease;
(d) A statement of whether or not a security deposit is required; and
(e) A disclosure of the lessee's liability at the end of an open-end lease.
[Statutory Authority: RCW 46.70.160. 98-20-039, § 308-66-152, filed 9/30/98, effective 10/31/98. Statutory Authority: RCW 46.70.180 and 46.70.160. 91-03-019, § 308-66-152, filed 1/7/91, effective 2/7/91. Statutory Authority: RCW 46.70.160 - 46.70.180. 90-20-086, § 308-66-152, filed 9/28/90, effective 10/29/90.]
(a) It shall be considered an unlawful practice within the meaning of RCW 46.70.180(2) for a vehicle dealer to accept any vehicle on consignment without first reducing the terms of the consignment to writing.
(b) ((Minimum information required for)) All consignment
contracts((.)) must include:
(i) The names of the parties to the contract including the identity of the legal owner of the consigned vehicle.
(ii) ((A statement by the consignor that)) The
consignor's statement that guarantees to deliver the title to
the dealer-consignee upon sale of the vehicle((, as well as a
statement by the consignor indicating)) which identifies the
location of the title and states the unpaid balance ((of))
owing on the vehicle, if any.
(iii) The date of the consignment agreement.
(iv) The specific effective duration of the contract.
(v) The agreed upon ((price)) amount which will be paid
to the consignor ((will receive for his vehicle)).
(vi) The description of the consigned vehicle, by make, model, vehicle identification number, and license number.
(vii) The signatures of the parties to the contract.
(viii) If no ((price)) amount has been specified in (v)
above, then the minimum retail price and the commission, fee,
or compensation to which the ((vehicle)) dealer-consignee will
be entitled upon the sale of the consigned vehicle.
(2) In the event the dealer-consignee and the consignor shall deem it appropriate to vary the terms of the written contract, the dealer-consignee shall obtain written authorization from the consignor prior to the sale of the subject vehicle.
(3) Requirements for selling consigned vehicles.
(a) All funds received, including deposits or payments in
full or proceeds from the sale of trade-ins, ((shall)) must be
placed in a trust account as required under RCW 46.70.180(9),
and said funds ((shall)) must remain in ((such)) that trust
account until the consignor's and ((the legal owner's)) any
lienholder interests((, if any,)) have been fully satisfied
((as provided in the consignment agreement)). It shall be
considered an unlawful practice for a vehicle dealer or
salesperson to commingle funds received on a consigned vehicle
with the assets of the dealer and/or the salesperson until all
terms of the agreement have been completed.
(b) The amount due a consignor and any lienholder from
the ((date of completion of)) sale of the consigned vehicle
((shall)) must be paid by the consignee ((immediately where
title has been delivered to the purchaser, and in all cases
shall be paid)) within ten days following delivery of the
vehicle to the purchaser.
(c) ((The dealer shall give to the consignor a copy of
the purchase order used to complete the sale)) At the same
time payment is made pursuant to (b) of this subsection, the
dealer must give to the consignor a copy of the purchase order
used in the sale.
(4) Consignee's duty to transfer title.
(a) The sale of consigned vehicles imposes upon the
consignee-dealer the same duty under RCW 46.70.122 ((to the
consignee)) to promptly ((execute the assignment and warranty
of title)) transfer title into the name of the purchaser as in
any other sale.
(b) Prior to accepting a vehicle for consignment and
offering it for sale, it shall be the duty of the consignee to
verify or confirm the title location. Failure to do so shall
be considered an unlawful and deceptive practice under RCW 46.70.180(((1)))(2).
[Statutory Authority: RCW 46.70.160. 98-20-039, § 308-66-155, filed 9/30/98, effective 10/31/98; 96-19-025, § 308-66-155, filed 9/9/96, effective 10/10/96. Statutory Authority: RCW 46.70.160 and 46.70.028. 91-20-057, § 308-66-155, filed 9/24/91, effective 10/25/91. Statutory Authority: RCW 46.70.160 and 1986 c 199 § 1. 87-01-016 (Order DLR 115), § 308-66-155, filed 12/9/86; Order MV-352, § 308-66-155, filed 3/4/76.]
(1) Dealer responsibilities.
(a) The listing dealer shall be responsible for negotiating the agreement between seller and purchaser as follows:
(b) All written offers shall be presented to the seller for acceptance or refusal. A copy of the agreement shall be delivered to the purchaser immediately following the purchaser's signing.
(c) A copy of the offer to purchase shall be delivered to the seller immediately following seller's signing and acceptance of purchaser's offer.
(d) A copy of the agreement to purchase bearing the signature of the seller(s) shall be delivered to the purchaser as proof that the purchaser's offer was accepted.
(e) A legible copy of the agreement to purchase shall be retained in the listing dealer's files.
(f) A copy of the agreement between purchaser and dealer to disburse any funds from the trust account to pay liens against the used mobile/manufactured home shall be retained in the dealer's files.
(2) At the time the sale is closed, the listing dealer may pay outstanding liens out of the trust account prior to paying the sale proceeds to the seller.
(3) The sale of listed vehicles imposes upon the listing dealer the same duty under RCW 46.70.122 to promptly transfer title into the name of the retail purchaser, as in any other sale.
[Statutory Authority: RCW 46.70.160. 98-20-039, § 308-66-157, filed 9/30/98, effective 10/31/98. Statutory Authority: RCW 46.70.160 and 1986 c 199 § 1. 87-01-016 (Order DLR 115), § 308-66-157, filed 12/9/86.]
(2) When a dealer receives a vehicle bearing foreign
license plates, such plates ((shall)) must be covered by the
dealer's plates while that vehicle is being demonstrated. Upon the sale of the vehicle, the foreign plates shall be
removed and destroyed by the dealer prior to the delivery of
the vehicle. When ((a)) foreign-plated vehicles ((is)) are
sold to ((a)) residents of ((the)) a state whose plate is so
displayed on the vehicle and the purchaser returns the vehicle
immediately to his home state for use there and not in
Washington, the dealer may deliver the vehicle with foreign
plates attached if either one of two conditions is also met. The conditions are:
(a) The purchaser must ((have applied)) sign a
nonresident affidavit to ((his)) apply to their home state's
vehicle licensing authority to register the vehicle in ((his))
their own name, or
(b) The purchaser must have obtained a trip permit to
move the vehicle from the dealer's place of business to
((his)) the purchaser's own state.
(3) A dealer, corporate officer, member of a limited
liability company; or spouse of the dealer, corporate officer,
or member of a limited liability company; or an employee of a
dealer ((shall)) must carry ((an employee)) a vehicle dealer
identification card when operating any vehicle bearing
dealer(('s)) plates.
(4) Dealer(('s)) plates may not be used on any vehicle
belonging to a member of the dealer's family.
(5) Dealer(('s)) plates may not be used on any vehicle
owned by the dealer if such vehicle is used exclusively by
members of the dealer's family.
(6) Vehicles bearing dealer's plates may not be loaned to the dealer's service customers.
(7) Dealers are required to provide accurate records reflecting the use of dealer plates.
(8) Pursuant to RCW 46.70.090, testing vehicles for repair is limited to testing for a preexisting, identifiable problem known to the vehicle dealer or manufacturer before the testing is to begin.
[Statutory Authority: RCW 46.70.160. 98-20-039, § 308-66-160, filed 9/30/98, effective 10/31/98; 96-19-025, § 308-66-160, filed 9/9/96, effective 10/10/96. Statutory Authority: RCW 46.70.160 and 46.70.090. 91-20-057, § 308-66-160, filed 9/24/91, effective 10/25/91. Statutory Authority: RCW 46.70.160. 86-21-025 (Order DLR-114), § 308-66-160, filed 10/8/86; Order MV 170, § 308-66-160, filed 7/16/73; Order 70-08-04, § 308-66-160, filed 8/6/70; Order 69-1, § 308-66-160, filed 8/28/69; Order 2, § 308-66-160, filed 1/29/68.]
[Statutory Authority: RCW 46.70.160 and 1991 c 140. 91-20-057, § 308-66-165, filed 9/24/91, effective 10/25/91.]
NOTICE to customers concerning the nature and scope of
BUYER'S AGENT activity. A licensed bonded vehicle dealer may
act as a buyer's agent to arrange for you to purchase a new
vehicle.
1. Your agreement with the buyer's agent must:
| • | Be in writing. |
| • | Set forth the terms of the agreement. |
| • | Disclose total fees or other compensation to be received from you. |
| • | State whether or not any portion of the fee is refundable. |
| • | Receive or pay any vehicle purchase moneys. |
| • | Sign any vehicle purchase order, contract, odometer statement or title document. |
| • | Have the name of the buyer's agent appear on the purchase order, sales contract or title. |
| • | Sign any other document relating to the purchase, sale or transfer of the new vehicle. |
| • | Use a power of attorney (POA) to do any of the above prohibited acts. However, the buyer's agent may use a POA to deliver the license plates to the customer. |
| • | Pay to or receive from a dealer any purchase moneys, fees, gratuities or rewards. |
| • | Claim or state that the buyer's agent offers, obtains or guarantees the lowest price. |
| • | Arrange for a new vehicle through an out-of-state dealer without disclosing to the customer in writing that the vehicle will not have Washington state lemon law coverage. |
[Statutory Authority: RCW 46.70.180(13) as amended in 1995 by SHB 2179. 96-24-041, § 308-66-175, filed 11/27/96, effective 12/28/96.]
(a) A description of the vehicle, which shall include those items of description required on the Washington application for title, and in the case of a retail sale requiring a title transfer, a copy of the computer-generated title application processed by a license agent showing fees paid to the state;
(b) The Washington license plate number assigned to the vehicle upon transfer;
(c) The required odometer statement disclosure form which shall conform to 49 Code of Federal Regulations, part 580, and in WAC 308-56A-640 or if a licensed vehicle dealer auction company conducting wholesale consignment sales, the odometer disclosure record for such sales as required in 49 Code of Federal Regulations, part 580.9 and in WAC 308-56A-670;
(d) ((The)) All purchase orders ((shall)) must be dated
and include the business name of the dealer and a description
of any trade-in vehicle by year, make and vehicle
identification number.
(2) ((The)) A record of the purchase and sale of ((the))
a vehicle ((shall)) must be maintained on all transactions,
whether at retail or wholesale; and must be available for
inspection and copying by representatives of the department of
licensing during normal business hours.
(3) Any such records kept electronically must be made available in hard copy upon request of a representative of the department of licensing.
[Statutory Authority: RCW 46.70.160. 96-19-025, § 308-66-180, filed 9/9/96, effective 10/10/96. Statutory Authority: RCW 46.70.160. 90-24-054, § 308-66-180, filed 12/3/90, effective 1/3/91. Statutory Authority: RCW 46.70.160 and 1986 c 199 § 1. 87-01-016 (Order DLR 115), § 308-66-180, filed 12/9/86; Order MV 170, § 308-66-180, filed 7/16/73; Order 2, § 308-66-180, filed 1/29/68.]
(a) The lien holder fails to deliver the vehicle title to
the dealer within the ((required)) time period for title
transfer; and
(b) The dealer has satisfied the lien; and
(c) The dealer has proof that payment of the lien was made within two calendar days, exclusive of Saturday, Sunday, or a legal holiday after the sales contract has been executed by all parties and all conditions and contingencies in the sales contract have been met or otherwise satisfied; or
(d) The director may excuse any situations in which applications are delayed for reasons beyond the control of the dealer.
(2) The dealer ((shall)) must in every case sign or type
((his/her)) their name on the dealer's report of sale on the
title application accompanying the transfer. If an authorized
agent signs for the dealer, ((he/she shall)) they must give
((his/her)) their title.
(3) The dealer shall provide a vehicle odometer disclosure statement with the title application as required by RCW 46.12.124.
[Statutory Authority: RCW 46.70.160 and 46.70.110. 99-02-049, § 308-66-190, filed 1/5/99, effective 2/5/99. Statutory Authority: RCW 46.70.160. 96-19-025, § 308-66-190, filed 9/9/96, effective 10/10/96. Statutory Authority: RCW 46.70.160 and 46.70.124. 94-21-055, § 308-66-190, filed 10/13/94, effective 11/13/94. Statutory Authority: RCW 46.70.160, 46.12.120 and [46.12].124. 91-20-057, § 308-66-190, filed 9/24/91, effective 10/25/91. Statutory Authority: RCW 46.70.160. 90-24-054, § 308-66-190, filed 12/3/90, effective 1/3/91; 90-10-013, § 308-66-190, filed 4/20/90, effective 5/21/90; Order MV 170, § 308-66-190, filed 7/16/73; Order 2, § 308-66-190, filed 1/29/68.]
(a) A separate certificate of ownership in the name of the dealer, or the dealer's immediate vendor, properly assigned; or
(b) Evidence that the dealer owns the vehicle, such as a
bill of sale or purchase order, ((and)) together with evidence
that the dealer has satisfied or paid off any ((legal owner))
lienholder on the vehicle.
(2) If there is a ((legal owner)) lienholder on any
vehicle acquired by the dealer, the dealer ((shall)) must
obtain possession of the title by paying off any balance due
to the ((legal owner)) lienholder no later than the close of
the second business day following the date of acquisition of
the vehicle by the dealer. For purposes of this section, if a
dealer takes possession of a vehicle as a trade-in, a dealer
acquires ((a)) that trade-in vehicle when the dealer takes
possession of the vehicle ((and an authorized representative
of the dealer unconditionally accepts the written offer to
purchase and financing has been approved)) and unconditionally
sells another vehicle for which the trade-in vehicle is part
of the price in accordance with RCW 46.70.180(4).
[Statutory Authority: RCW 46.70.160. 98-20-039, § 308-66-195, filed 9/30/98, effective 10/31/98. Statutory Authority: RCW 46.70.160 and 46.70.124. 94-21-055, § 308-66-195, filed 10/13/94, effective 11/13/94; Order MV 170, § 308-66-195, filed 7/16/73.]
[Statutory Authority: RCW 46.70.160. 96-19-025, § 308-66-200, filed 9/9/96, effective 10/10/96; Order MV 170, § 308-66-200, filed 7/16/73; Order 2, § 308-66-200, filed 1/29/68.]
(2) Any person((, member, firm, association, corporation,
entity or trust)) licensed as a vehicle manufacturer pursuant
to chapter 46.70 RCW ((shall advise)) must inform the
department in writing within ten days of the change ((and/or
addition)) to:
(a) The business structure of the licensee company and must file a new application and pay original licensing fees under the new entity;
(b) The mailing address of ((a)) the licensee;
(c) The name and address of employees or agents
designated pursuant to RCW 46.70.041 and 46.70.101 to provide
service or repairs to vehicles located within the state of
Washington. However, if the licensee requires warranty
service to be performed by all of its dealers pursuant to
current service agreements on file with the department, it
need not advise the department of changes in ((its lists of
dealers)) such employees or agents.
(3) Any and all changes affecting the applicability of a
surety bond((, if posted,)) shall be reflected by appropriate
endorsement to such bond.
[Statutory Authority: RCW 46.70.160. 98-20-039, § 308-66-210, filed 9/30/98, effective 10/31/98; 96-19-025, § 308-66-210, filed 9/9/96, effective 10/10/96. Statutory Authority: RCW 46.70.160 and 1986 c 199 § 1. 87-01-016 (Order DLR 115), § 308-66-210, filed 12/9/86; Order MV 170, § 308-66-210, filed 7/16/73; Order 70-08-04, § 308-66-210, filed 8/6/70; Order 69-1, § 308-66-210, filed 8/28/69; Order 2, § 308-66-210, filed 1/29/68.]
[Statutory Authority: RCW 46.70.160. 98-20-039, § 308-66-211, filed 9/30/98, effective 10/31/98; 96-19-025, § 308-66-211, filed 9/9/96, effective 10/10/96; Order MV 170, § 308-66-211, filed 7/16/73; Order 70-08-04, § 308-66-211, filed 8/6/70.]
The special license plates issued to the original licensee(s) may be assigned to the new license upon request.
[Statutory Authority: RCW 46.70.160. 98-20-039, § 308-66-212, filed 9/30/98, effective 10/31/98; 96-19-025, § 308-66-212, filed 9/9/96, effective 10/10/96. Statutory Authority: RCW 46.70.160 and 46.70.041. 91-20-057, § 308-66-212, filed 9/24/91, effective 10/25/91; Order MV 170, § 308-66-212, filed 7/16/73; Order 70-08-04, § 308-66-212, filed 8/6/70.]
The special license plates issued to the original licensee(s) may be assigned to the new licensee upon request.
[Statutory Authority: RCW 46.70.160. 98-20-039, § 308-66-214, filed 9/30/98, effective 10/31/98; 96-19-025, § 308-66-214, filed 9/9/96, effective 10/10/96. Statutory Authority: RCW 46.70.160 and 46.70.041. 91-20-057, § 308-66-214, filed 9/24/91, effective 10/25/91; Order MV 170, § 308-66-214, filed 7/16/73; Order 70-08-04, § 308-66-214, filed 8/6/70.]
[Order 70-08-04, § 308-66-220, filed 8/6/70; Order 2, § 308-66-220, filed 1/29/68.]
(2) At no time shall a vehicle that falls within the purview of WAC 308-56A-455 (assembled or homemade) or 308-56A-460 (total loss rebuilt) be considered remanufactured by a manufacturer.
[Statutory Authority: RCW 46.70.160 and 1986 c 199 § 1. 87-01-016 (Order DLR 115), § 308-66-225, filed 12/9/86.]
[Statutory Authority: RCW 46.70.160. 98-20-039, § 308-66-227, filed 9/30/98, effective 10/31/98; 96-19-025, § 308-66-227, filed 9/9/96, effective 10/10/96.]
(1) Brings together a Washington state customer with a licensed Washington state dealer; and
(2) Receives compensation from the customer or the dealer resulting from the actual sale or lease of a vehicle; or
(3) In any event acts as a vehicle dealer as defined in existing Washington state statutes and rules.
[]
The request:
(a) Must be in writing; and
(b) Must explain why the statutory formula does not satisfy the business needs of the dealer; and
(c) Must indicate how may vehicles were sold by the dealer in the past twelve months; and
(d) Must project how may vehicles are expected to be sold in the next twelve months; and
(e) Must state how many additional dealer license plates are desired as essential for the continued operation of the dealer's business.
(2) Upon receipt of a request for a waiver, the director or the director's designee will review the request and issue a final determination in writing.
(3) A waiver granted under subsection (2) of this section will remain in effect only as long as the circumstance(s) under which the waiver was originally granted have not changed or until the director terminates the waiver.
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