Section 12 of 38
Chapter 11: Transfers
11.145 Repossessions–New Vehicles
Chapter 11 Transfers
11.145 Repossessions—New Vehicles (California Commercial Code §9503)
For new unregistered vehicles repossessed from a dealer, the following must be submitted:
- An Application for Title or Registration (REG 343) form completed by the buyer.
- If the REG 343 does not indicate the vehicle was not registered previously, a Statement of Facts (REG 256) form completed by the finance company or the buyer stating the vehicle was not previously registered.
- A Verification of Vehicle (REG 31) form.
- A certified copy of the trust receipt or flooring note agreement between the finance company and the dealer.
- A Certificate of Repossession (REG 119) form executed by the finance company.
- Bills of sale, as needed, to complete the chain of ownership.
- A smog certification, if appropriate.
- Registration fees based on the original (first buyer’s) purchase price and date of sale y a transfer fee for the transfer to the second buyer. A smog certification is not required provided the original REG 397 is submitted.
If registration fees are paid within 20 days from date of sale to the first buyer, the dealer will not be charged an ASF for an over 20-day violation, regardless of the length of time the report of deposit of fees (RDF) is held pending sale to a second buyer. The dealer has 30 days to submit the transfer application without penalty.
When a repossessed vehicle is sold through a dealer conducting a wholesale motor vehicle auction, the renewal penalties due may be waived if all fees due are paid within 60 days of the last auction date.
In the case of multiple wholesale motor vehicle auctions, a subsequent auction restarts the 60 days, as long as the repossessed vehicle stays within a legal owner/dealer/wholesale motor vehicle auction cycle (even if one of the dealers is out of state). The penalty waiver may be applied through the final wholesale auction date if paid within 60 days of the last auction.
If the vehicle is sold to a retail customer during the legal owner/dealer/wholesale motor vehicle auction cycle and the vehicle goes back to a wholesale motor vehicle auction (such as, due to an unwind), the renewal fees must be paid within 60 days of the last auction date before that retail sale to avoid penalties.
The dealer requesting a renewal penalty waiver must submit a Statement of Facts (REG 256) form which states the following:
- The dealer is requesting a renewal fee penalty waiver.
- The vehicle is a repossessed vehicle.
- The repossessed vehicle is sold through a dealer conducting a wholesale motor vehicle auction.
- The date of the last wholesale motor vehicle auction and that all renewal fees due have been paid within 60 days of the last wholesale motor vehicle auction date.