Forms Used in Car Sales

The world of vehicle sales is a paperwork jungle. It seems that every time you turn around, another form is needed. Where does it stop? Well, the truth is, it doesn't stop, it gets worse. What with DMV on one side of the aisle telling you to fill out this form, and various other departments on the other side of the aisle telling you to fill out that one, you don't have the time to watch out for lawyers, sharpshooters and con-men coming from all directions at the same time. When you really get down to it, some of the paperwork is for your own good and even if you could do away with it, you shouldn't.

All of the forms required by DMV are available free of charge from your local Tax Collector's Office (Tag Office). All you have to do is ask. If you need large quantities, forms are available directly from Tallahassee.

There are, however, many forms that are not freely dispensed. These forms you must purchase from a supplier. There are many people who will offer to sell you forms. For the most part, they just let someone else do the thinking and designing, and then they just copy them and offer to sell them to you. Truthfully, forms design is much more than that. Very few things in life are foolproof, but it is comforting to know that a lot of effort has gone into trying to offer you the best possible.

(NEW) BLANKET CERTIFICATE OF RESALE...This form is required by the sales tax people (Department of Revenue) any time you sell a vehicle to an entity within this state and do not charge sales tax on the transaction. This includes other dealers or wholesalers. Just because a dealer tells you that he is a dealer doesn't let you off of the sales tax hook. You must have a signed certificate from him stating that the vehicle is intended for resale and that he in fact possesses a tax registration number. He completes one of these certificates the first time he buys from you and you keep it on file for any future sales and you don't need to have him sign another unless his tax status changes during later years. Likewise, when you buy from another dealer, he should offer you one of these forms to sign and he should keep it. If you haven't been using such a form, you need to start. An audit by the sales tax people could become mighty expensive if you failed to get signed certificates.

(NEW) POWER OF ATTORNEY TO SETTLE... This form is handy as a tool for you to use when an insurance claim needs to be filed or settled and the actual customer is not available to sign for himself. There are also situations where the vehicle is impounded by public or private parties. Sometimes, even though you have a lien on the vehicle, it won't be released to you because the actual owner can't or won't sign his authorization. With this form, you already have his permission, so you can sign for him and regain possession of your liened vehicle. This may be of more value in some counties than others, and if you are sure that your borrower will never enter one of the problem counties, you may not need this one. But then, it is really helpful when an insurance claim needs to be filed and the customer is not available to sign for himself.

(NEW) REPAIR RELEASE ORDER... Florida is one of the states that allows a little slack on Implied Warranties. Here, we can sell a vehicle "As Is". In many states, that is not allowed and many repairs are forced on the dealer when he least expects it. Many vehicles sold in Florida are sold "As Is". But, you must still be a little cautious about how you make that sale. For example, you sell a vehicle "As Is" and the customer drives just a few feet off the lot and the motor dies, so you have one of your people grab a screw driver and tweak the carburetor so that it purrs like a kitten. You just broke your own "As Is" warranty. Now, when the customer comes back with a bad engine or transmission next week, you could be responsible for making additional repairs. To hopefully keep this from happening, go ahead and tweak the carburetor, but only after having the customer sign a Repair Release Order. In it, you have told him that this repair in no way changes the "As Is" nature of the sale, and in no way implies that you will repair anything else. Hopefully, that will be the end of it. Who knows what some courts or lawyers will attempt to do, but you have made an attempt at being up front.

(NEW) DEPOSIT RECEIPT... It is amazing how many dealers or other merchants don't know the proper way to take money as a deposit. Just giving out a simple receipt can put you in a potentially bad position. Often, if a customer leaves a deposit and then changes his mind, you just give the money back with no questions asked. Other times, you maybe lost a sale on the vehicle to someone else because you were holding the vehicle for the guy who now wants his money back. Maybe, he gets a little insulting so now you really don't want to give it back. If you did your deposit receipt properly you can decide for yourself what is fair. If you did it improperly, you don't have a choice, you must give it back. Remember, improperly keeping a deposit can result in a bond claim or DMV disciplinary action or both.

(NEW) CONSIGNMENT AGREEMENT... If there is anything that represents a "can of worms" in this industry, consignment sales is it. Some of the nicest people in the world become outright vultures when they think a dealer has done them wrong. You take a car on consignment, sell it, and then discover that the owner has changed his mind. It's your word against his. He wins. You are just a dealer, so everyone would believe that you must be in the wrong. But, if you got a consignment agreement signed by both you and the consignment customer, you can protect yourself and settle disputes before they happen. If something happens to the vehicle while it is in your custody, whose insurance is going to pay? If it has mechanical defects, who is going to fix them? There are so many things to consider in a consignment sale, you would really be an amateur if you didn't get an agreement signed.

(NEW) BILL OF SALE AND BUYER'S ORDER... Every dealer issues one of these when he sells a vehicle. Some dealers may not use one when they do a wholesale sale, but they should. It is critical that all of the information that you need is available on this form, especially the words that are prescribed by law. Some dealers use the form that was used by whoever owned the business before them. That must be good enough, cause "old Charlie" sold a ton of vehicles using it. Well, chances are "old Charlie" never got into the rough audit or law suit that may befall you. It is not wise to just trust on luck or tradition to help carry you through. Simple items such as a statement from the buyer that his trade-in vehicle is clear of unknown liens are a must. The text referring to the "window sticker" being a part of the deal is demanded by the Federal Trade Commission. Showing profit as a part of dealer get ready, outlining license and registration fees as COD charges above and beyond all other listed costs, a statement that the buyer is 18 years of age or older.... all of these can save you a lot of grief. The Bill of Sale should show exactly what is included in the sale, it should never show finance rates, terms, payment plans, etc. A retail installment contract should outline all of the appropriate loan data, don't try to do it on the sales order.

RETAIL INSTALLMENT CONTRACT... This form is available in three parts (copies) for all Add-on type loans. Buy-Here Pay-Here dealers most often use this contract. Thousands are sold each month. It contains disclaimers and pledges that are important to the dealer and to the customer. This is the document that is the basis for loans, liens and many court appearances. You should do your best to assure that you use the best contract available.

BUYER'S GUIDE / WINDOW STICKER.. This form is required by the Federal Trade Commission on all passenger rated four wheel vehicles displayed for sale in the nation. The type size and contents are dictated by the FTC. A copy must be signed by the customer and kept on file for a period of five years. A copy must be given also to the customer. You must not ignore this form. This form is also available in Spanish.

CERTIFICATION OF POLLUTION CONTROL... This form is also demanded by the Federal Government to be completed and signed for all passenger rated four wheel vehicles sold at retail in America. Dealers in Hillsboro county must use an even stricter version that is also available. A copy of this form must be retained by the dealer for a period of five years.

ODOMETER DISCLOSURE STATEMENT... This form is popular because it comes in two copies so it is easy to give the customer one and have one to keep. Actual federal odometer disclosures are made on state provided forms or on the back of the title itself. But, it is wise to have a signed copy for yourself and one for the customer. This form does not replace the state forms, but it gives you comfort in knowing that all odometer readings are agreed to and a copy of proof is in your files.

AS IS WARRANTY DISCLOSURE... This form is used to reinforce the agreement that this vehicle is sold As Is. The Buyers Guide already said that, and is really the legally enforceable document. But, this is further proof that you did disclose the As Is status of the vehicle. One copy is for the customer, and one should be kept in your files.

You should sit down and review your forms usage and maybe add a few of these to make a more solid package.

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