2015 GNYADA MEMBERSHIP DIRECTORY

HOT TOPICS

2015 GNYADA Membership Directory

138

Information provided courtesy of NADA. GNYADA thanks NADA for this information.

FAILURE TO DISCLOSE PRIOR USE OF VEHICLES COSTS

DEALER MORE THAN $100,000

NewYork Vehicle and Traffic Law and DMV Regulations require dealers to disclose the prior use of a vehicle in

certain circumstances. If a vehicle’s principal prior use was from one of the following categories:

taxi, rental

car, police car or driver education vehicle

, dealers must provide written disclosure. Principal prior use

means more than 50% of the total miles on the vehicle came from the prior use.

The

Prior Use

statement (language below) must be conspicuously printed, typed or stamped on the dealer’s

contract of sale and given to your buyer prior to the customer’s agreement to purchase the vehicle.

This disclosure is required in both retail and wholesale transactions. Failure to disclose prior use can result in

lawsuits for damages and the statute permits triple damages against the seller.

If you are selling used vehicles covered by this section, be sure that the buyer is aware of the primary prior

use of the vehicle before the sale is completed. Also, be sure to get your customer’s signature

Prior Use Certification (required by Vehicle and

Traffic Law 417-a if the principal prior use of the

vehicle was as a police vehicle, taxicab, rental

vehicle or driver education vehicle). The principal

prior use of this vehicle was as: a police vehicle

____, a taxicab ____, a rental vehicle_____, a police

vehicle ____, or a driver education vehicle_____.

DMV Regulations

require this

language on

customer contracts

for such vehicles