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7.010 New Vehicle Sales by a Non-Franchised Dealer

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Vehicle Industry Registration Procedures Manual

Chapter 7 Miscellaneous Originals

7.010 New Vehicle Sales by a Non-Franchised Dealer

A dealer cannot advertise for sale, sell, or purchase for resale any new vehicle of a line-make for which the dealer does not hold a franchise. (CVC §11713.1[f, 1])

Exceptions (CVC §11713.1[f, 2])

  • A mobilehome.
  • A recreational vehicle (motorhome, travel trailer, or camping trailer) as defined in Health and Safety Code (H&SC) §18010.
  • A commercial coach as defined in H&SC §18001.8.
  • An off-highway motor vehicle (OHV) subject to OHV identification.
  • A commercial vehicle with a gross vehicle weight (GVW) rating of more than 10,000 pounds.
  • A manufactured home.
  • A new vehicle that will be substantially altered or modified by a converter prior to sale.
  • A vehicle purchased for export and exported outside the United States territorial limits without being registered by the department.
Important: Some of the exceptions listed above are vehicles that are not registered by this department or cannot be registered as a condition of the exception.

Registration Requirements

When one of the exception vehicles is sold by a non-franchised dealer or a used vehicle dealer, the following are required:

  • Properly completed Application for Title or Registration (REG 343).
  • Report of Sale, Used Vehicle (REG 51) from the dealer to the retail buyer.
  • Evidence of purchase of the new vehicle by the dealer. This may be:
    • an Application for Registration of New Vehicle (REG 397) from the franchised dealer, or
    • a certified copy of the factory invoice and a bill of sale from the manufacturer, or
    • the Manufacturer's Certificate/Statement of Origin (MCO/MSO) properly endorsed to the dealer. Bills of Sale are acceptable in lieu of endorsement(s) on the MCO/MSO.
  • Vehicle verification (REG 343/REG 31), unless a REG 397 is part of the application.
  • Weight Certificate for a Commercial Vehicle less than 10,001 pounds unladen or if the vehicle weighs 10,001 pounds or more, or is a trailer in the PTI program, the estimated unladen weight is required and must be shown on a Statement of Facts (REG 256).
  • Declaration of Gross Vehicle Weight/Combined Gross Vehicle Weight (REG 4008) completed and signed by the owner for a commercial vehicle weighing 6,001 pounds or more unladen.(Not required for pickups)
  • Smog certification, if appropriate.
  • Fees due.

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