Forms Needed in a Deal and Steps to Follow

FAST FACTS  

  • Dealers are required to complete many forms in a deal, beyond title and registration forms.
  • Although not all of these forms are required, they are commonly used in the industry to protect dealers and customers.
  • The following list is not exhaustive.
  • Consult with counsel regarding all the forms your dealership should use.

Forms/Documents Commonly Needed in a Deal (in no particular order; NOT an exhaustive list). *Items with asterisk are explained below

*Bailment Agreement

*Buyers Guide (if applicable)

*Declaration Affidavit for MV Which Will be Titled in Another State/Country (HSMV 84061)

*Notice of Credit Denial (Adverse Action)

*Off-Line Issuance of a Pre-Printed Temporary License Plate (HSMV 82082)

*Pre-Sale Credit Disclosure

*Reassignment Supplement (HSMV 82091)

*Risk Based Pricing Notice

*s. 501.98 Disclosure

Arbitration Agreement

As-Is Warranty Disclaimer

Authorization for Payoff

Copy of Proof of Identity

Credit Application

Damage Disclosure Form

Dealer Reassignment (HSMV 82994)

Delivery Summary

Disclosure of Title Brands

DR 123 – Affidavit for Partial Exemption…

Driver License Verification

Goodwill Repair Addendum

IRS Form 8300

Lemon Law Notice

Notice to Cosigner

Odometer Disclosures

Pollution Control Form (if applicable)

Powers of Attorney (secure/non-secure)

Privacy Notice

Proof of Insurance

Purchase Agreement (Buyer’s Order)

Retail Installment Sale Contract

Test Drive Agreement

Title Application

Trade-in Vehicle and Inspection Form

*Bailment Agreement – When making a spot delivery or when providing the customer with a loaner vehicle, this type of agreement may be used.

Bailment Agreement

*Buyers Guide – Updated by the Federal Trade Commission. You must start using the new form not later than January 27, 2018

New Buyers Guides English and Spanish

*Declaration Affidavit for a Motor Vehicle Which Will be Titled and Registered in Another State or Country – When you sell to an out-of-state/country customer and the customer will be processing his/her own title and registration paperwork, you must have the customer sign this form.

Declaration Affidavit for MV Which Will be Titled in Another State or Country – HSMV 84061

*Notice of Credit Denial (Adverse Action Notice) – Regulation B and the Equal Credit Opportunity Act require creditors to provide consumers with a notification of adverse action when credit is denied. Automotive dealers are considered creditors under this act. Nine (9) form letters for providing notice may be viewed on KnowledgeBase.

Notice of Credit Denial – Adverse Action

*Off-Line Issuance of a Pre-Printed Temporary License Plate – When your electronic temporary tag system is off-line, requiring you to issue a pre-printed temporary tag, this form must be completed and retained for five (5) years.

Offline issuance of temp tag HSMV 82082

*Pre-Sale Credit Disclosure – The federal Truth-in-Lending Act – or “TILA” for short – requires that borrowers receive written disclosures about important terms of credit before they are legally bound to pay the loan.

Pre-Sale Credit Disclosure

*Reassignment Supplement to a Certificate of Title (HSMV 82091) – When you sell or purchase towable vehicles (anything exempt from odometer requirements), you may use this form instead of the Rainbow Form (HSMV 82994).

Reassignment Supplement NonSecure-HSMV 82091

*Risk Based Pricing Notice – Risk-based pricing occurs when lenders offer different consumers different interest rates or other loan terms, based on the estimated risk that the consumers will fail to pay back their loans. The form shown below may be used if it is given to all customers who finance.

Risk Based Pricing Notice

*Section 501.98, Florida Statutes Notice – Gives notice to customers that before bringing any claim against a dealer they must give 30 days notice.

Notice Pursuant to s. 501.98 – Disclosure

 Verifications that Must be Conducted

OFAC (all deals, all parties)

Red Flags (financed deals)

Other Issues of Concern

Misaligned Printing on Forms

If your numbers or check marks are not aligned properly on your documents, you may find out that what you “thought you disclosed” is not considered to be disclosed. Briefly, a person sued a dealer for failing to disclose the fee of $60.00 for vendors single interest insurance (VSI) on the retail installment sale contract. The dealer did in fact place “XX” near the box but it did not align properly. After the dealer lost the case and appealed the decision, an appellate court found that the dealer did not comply with the Truth in Lending Act (TILA) notice requirement because the VSI provision was not properly checked.  The “XX” indicator in the vicinity of the box was not close enough for a jury to conclude that the box was checked. BE CERTAIN THAT ALL YOUR NUMBERS AND CHECKMARKS ARE PROPERLY ALIGNED ON ALL YOUR FORMS.

Franco v. A Better Way Wholesale Autos, Inc., 2017 U.S. App. LEXIS 8689 (2d Cir. (D. Conn.) May 18, 2017).

Fair Credit Compliance – Dealer Participation Rate – The Dealer Participation Rate (also referred to as “Dealer Markup”) has been getting a lot of unfavorable attention lately, especially from the Consumer Financial Protection Bureau (CFPB).  The NADA, the American International Automobile Dealers Association and the National Association of Minority Automobile Dealers Association drafted a “Fair Credit Compliance Policy & Program Manual.”. It clearly outlines the risks of not having a policy and consistently applying finance rates (APR) to ensure that there is no negative disparate impact on customers who are members of a protected class, in violation of the Equal Credit Opportunity Act (ECOA) and Regulation B. Sample forms and the entire Manual may be accessed using the link below.

NADA-AIADA-NAMAD Fair Credit Compliance Program (7-15)

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