Vehicle Industry Registration Procedures Manual

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Section 8 of 38

Chapter 7: Miscellaneous Originals

7.070 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 (VC §11713.1(f)(1)).

Exceptions (VC §11713.1(f)(2))

  • A mobile home.
  • 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 DMV.

Some of the exceptions listed above are vehicles that are not registered by DMV 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 either:
    • 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.