We understand that there are times when our members need a quick answer for those requests or questions that come their way. For that reason we have created this section the will speak to that need.
We will continually update this page to keep in step with the demands and needs of our members. This page will supply you with links to PDF downloads or websites to find the answers you are looking for.
1. Each time a vehicle is sold an inspection should be conducted as per regulations (184.108.40.206 et seq.) and is consistent with the requirements of NMSA 57-12-6(1978). Inspections should be conducted by an independent third-party. However, if the dealer has adequate resources to have a thorough independent inspection of the automobile done within the dealership, then that inspection can be conducted by the dealer.
2. The inspection should be conducted pursuant to the form which is attached to the regulations adopted by the State of New Mexico with regard to sale of automobiles in the State of New Mexico.
3. The inspection should be timely conducted and disclosure should be made to the purchaser of any damages which have been noted in the inspection so that the consumer is fully aware of whether or not the car has previous damage before the sale is completed.
4. Neither the inspection regulation itself nor the State Statute require that there be a cost estimate provided concerning the amount of damage, if any, found during the inspection.
5. It should be noted, however, that if such financial information is available to the dealer, disclosure to the consumer is strongly recommended.
You can now renew your Dealer's License Online! This dramatically streamlines what you have to submit and the time you spend on your renewal.
You will need to first go to My MVD Online
You'll be prompted to register and create a login if you haven't already done so. Make sure your have your tax ID# handy.
Once you have created your account you can now work on getting the documents you will need to finish your online renewal.
It is recommended you have the following ready before you begin the online renewal process:
1. Number of Vehicles Sold in the last year
2. Education certificate- Used dealer (required every 2 years).
3. Franchise agreements- If you have new or changed franchises.
4. Current Business License
5. Bond- New, Rider or receipt of payment
6. $50- processed by credit card or echeck
It is strongly recommended that you have your documents scanned and in a PDF file format for easy uploading.
You can now log in and click on your Dealer account and start your online license renewal process.
A full downloadable how to guide is available HERE
It is a best practice to be your own VIN Inspector.
There are several advantages to having the credentials to inspect your own vehicles for your own lot. Once you have done all the leg work and have passed the online class, know the laws and responsibilities, the effort put into becoming a VIN Inspector will be self evident. It is one of the easiest certifications you can do for yourself.
1) Time Savings:
You will save time by being able to do your VINs there on the spot, on your lot. No more waiting on someone to come to your lot or drive cars in your inventory to another location. Lose the wait, save time.
2) Money Savings:
You'll never have to pay a fee again for getting your VIN inspections done for your inventory. You'll save on to and from transportation costs as well as other expenses associated with VIN Inspections
3) Logistical Savings:
You will process your sales faster and improve your bottom line and increase your customer service.
You can learn how to become a VIN inspector by calling NM Dealer Services at 505-383-2316 or by writing to:
505 Marquette NW
Albuquerque, NM 87102
Or by going online to My MVD Online. Choose Dealer Services and then Schedule Vin Inspectors Class.
VIN Bond Information can be obtained at Commercial West Insurance Agency by visiting www.cwagency.com
A streamlined and smart sales/ compliance process will reward the auto dealer in today's environment. It is a best practice to be a Notary Public or have someone in your sales office become one.
Owners can look at this in two ways:
1) It is a great customer service/ sales tool. No more delays in paperwork and no more sending customer to another location (bank or other office) to get paperwork stamped and give the customer time to think about the sale and running the risk of a change of heart.
2) Your paperwork will be in compliance. Since allot of our forms are requiring Notary Stamps for YOUR protection it only makes good business sense to have one "In House".
Below is the link to the state site to start the process:
Notary Bond information can be found by visiting Commercial West Insurance Agency at www.cwagency.com
What Is VRS:
VRS is an online registration system that all New Mexico Dealers must use to generate Temp tags, Demo Tags, and Transit Tags for their vehicles. The VRS system can also do Lien Checks and NCIC checks that can help the auto dealer avoid costly delays.
Your VRS password will expire every 90 days. You will get an email reminder 15 days (and every day after that counting down from 15 to 1) prior to it expiring to change your password. If you have not changed your password with in that time frame then you will have to call the VRS help desk to do a hard password reset. It is a best practice to change your password beforehand to avoid delays in accessing your account to make tags.
The VRS helpdesk number is 505-232-0809
How Do I Get A VRS Account?
To start your Vehicle Registration account you must complete the following 2 steps:
Step 1. Create a Username and Password.
This is NOT creating a VRS account. This is to create a log in for that account. To create a VRS account you MUST complete step 2.
Step 2. Create a VRS account.
This is a 7 page application that you must print out, complete and send to Santa Fe. It is best practice to Fax and mail a copy to Santa Fe. It is also a best practice to keep a copy for your records.
Please remember to use a E-mail address that you check and use often as important information concerning your Account and Login will be communicated to you via that E-mail address.
The link below will take you to the VRS Help page. 90% of all question can be answered here. A good tip is to read it slow. It is in a "step by step" format so if you go fast you may skip over an important step.
The NMIADA is happy to bring It's members a monthly news blog from the Carlawyer. This page will bring you up to date about legislation that can affect your business.
By Thomas B. Hudson and Nicole F. Munro
Happy New Year! Here’s our monthly article on legal developments in the auto sales, finance and leasing world. This month, the action involves the Consumer Financial Protection Bureau and the Federal Trade Commission. As usual, this month’s article features our “Case of the Month.”
Note that this column does not offer legal advice. Always check with your own lawyer to learn how what we report might apply to you, or if you have questions.
This Month’s CARLAWYER© Compliance Tip
Do you belong to a state dealer association? Does that dealer association have a code of conduct or code of ethics, and do you proudly display a copy of it on your dealership’s wall, out in the showroom where your customers can see it? If so, you might want to step over to the wall and read it. That statement of how your dealership does business can come back to haunt you if you are only “talking the talk,” but not “walking the walk.” Take a hard look at it and contemplate on how well your dealership is keeping its promises.
A New Sheriff is in Town. On December 6, the U.S. Senate, in a 50-49 party-line vote, confirmed Kathy Kraninger as the director of the Consumer Financial Protection Bureau, replacing acting director Mick Mulvaney. Kraninger previously worked as an associate director in the Office of Management and Budget. She will serve for a 5-year term.
What’s in a Name? Mick Mulvaney, who served as acting CFPB Director before Kraninger’s nomination and confirmation, had decreed a name change for the Consumer Financial Protection Bureau – he preferred the “Bureau of Consumer Financial Protection,” the name used in the Dodd-Frank Act. One of Kraninger’s first acts at the Bureau was to drop the name change initiative, so we’re back to calling the Bureau the CFPB again.
Were You Thinking the CFPB Had Quit Enforcing the Credit Laws? Think again. On December 6, the CFPB announced a settlement with State Farm Bank, FSB, for violating the Fair Credit Reporting Act, Regulation V, and the Consumer Financial Protection Act of 2010 in connection with its credit card lending and auto refinance loans. Specifically, the CFPB alleged that State Farm obtained consumer reports without a permissible purpose, including obtaining consumer reports for the wrong consumer, not the consumer who had applied for a credit product; furnished to credit reporting agencies information about consumers’ credit that the bank knew or had reasonable cause to believe was inaccurate, including furnishing account information for the wrong consumer, reporting current accounts as delinquent, and reporting inaccurate payment histories and past-due amounts; failed to promptly update and correct information furnished to CRAs; furnished information to CRAs without providing notice that the information was disputed by the consumer; and failed to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information provided to CRAs. The consent order requires State Farm to implement and maintain policies and procedures to address the alleged violations and to develop a compliance plan designed to ensure that its consumer credit reporting activities comply with federal law.
Wave That Red Flag! On December 4, the FTC, as part of its periodic review of current rules and guides, issued a request for comment on its Red Flags Rule, which requires financial institutions and some creditors to implement a written identity theft prevention program designed to detect the “red flags” of identity theft in their day-to-day operations, take steps to prevent identity theft, and mitigate its damage. Comments are due by February 11, 2019.
Report Card Time. On December 4, the CFPB issued its annual Fair Lending Report to Congress highlighting the CFPB’s fair lending activities in 2017. The report addresses, among other things, (1) the CFPB’s oversight and enforcement of federal laws intended to ensure the fair, equitable, and nondiscriminatory access to credit, including the Equal Credit Opportunity Act and the Home Mortgage Disclosure Act; (2) the CFPB’s coordination with other federal and state agencies to promote enforcement of federal fair lending laws; and (3) the CFPB’s fair lending education initiative
Case of the Month
Arbitration Agreement in Retail Installment Contract Covered Car Purchasers' Defamation Claim Against Dealership Arising from Salesman's Statements:
After a dealership repossessed a car by mistake, the car owners sued the dealership for claims arising from the repossession and included a defamation claim based on the conduct of a dealership salesman. The car owners alleged that the salesman, who lived in the same condominium complex as the owners and many of their business customers, told other members of the condominium community that the vehicle was repossessed because the owners were in financial difficulty. The owners asserted that the dealership was vicariously liable for damages caused by the salesman's defamatory statements. The RIC contained an arbitration clause that covered, among other things, any claim or dispute in tort that "arises out of or relates to" the credit application, purchase, or condition of the vehicle. The dealership moved to compel arbitration. The trial court ruled that the defamation claim was not covered by the arbitration clause, but the state appellate court reversed and remanded for entry of an order compelling arbitration of the defamation claim. The appellate court noted that the arbitration language expressly contemplated tort actions. The appellate court also determined that the addition of the words "relates to" broadened the scope of the arbitration provision to include all claims, including tort claims, having a "significant relationship" to the contract. The appellate court found that there was a significant relationship between the owners' tort claim and the contract. The owners alleged that the defamation was based on statements allegedly made by the salesman within the scope of his employment. The appellate court found that those statements related to the owners' purchase of the vehicle and their ability to afford it, which in turn related to the credit application and the RIC that controlled the purchase. See Countyline Auto Center, Inc. v. Kulinsky, 2018 Fla. App. LEXIS 16684 (Fla. App. November 21, 2018).
So there’s this month’s roundup! Stay legal, and we’ll see you next month.
Tom (firstname.lastname@example.org) and Nikki (email@example.com) are partners in the law firm of Hudson Cook, LLP. Tom has written several books and is the publisher of Spot Delivery®, a monthly legal newsletter for auto dealers. He is Editor in Chief of CARLAW®, a monthly report of legal developments for the auto finance and leasing industry. Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. For information, visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2015, all rights reserved. Single publication rights only, to the Association. (7/15). HC# 4816-7599-4150.