Vehicle Industry Registration Procedures Manual

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Section 7 of 38

Chapter 6: New Vehicles Sold by California Dealers

6.035 New Vehicle Sales by a Nonfranchised or Used Vehicle Dealer

Chapter 6 New Vehicles Sold by California Dealers

6.035 New Vehicle Sales by a Nonfranchised or Used Vehicle Dealer

A dealer cannot advertise for sale, sell, or purchase for resale a 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))—This does not apply to transactions involving a:

  • Mobile home.
  • Recreational vehicle as defined in California Health and Safety Code (CH&SC) §18010.
  • Commercial coach as defined in CH&SC §18001.8.
  • Off-highway vehicle (OHV) subject to OHV identification.
  • Manufactured home.
  • New vehicle that will be substantially altered or modified by a converter prior to sale.
  • Commercial vehicle with a gross vehicle weight (GVW) rating of more than 10,000 pounds.
  • Vehicle purchased for export and exported outside the territorial limits of the United States without being registered by DMV.

Some of the vehicle exceptions above are not registered by DMV or cannot be registered as a condition of the exception. It is important to clarify the type of vehicle transaction before registering a vehicle.

When one of the exception vehicles is sold by a nonfranchised dealer or a used vehicle dealer, the following must be submitted:

  • A properly completed Application for Title or Registration (REG 343) form.
  • A Report of Sale–Used Vehicle (REG 51) form 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) form from the franchised dealer.
    • A certified copy of the factory invoice and a bill of sale from the manufacturer.
    • A 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.
  • A Verification of Vehicle (REG 31) form, unless a REG 397 is part of the application.
  • A weight certificate for a commercial vehicle weighing less than 10,001 pounds unladen. If the vehicle is operated over 10,000 pounds gross vehicle weight (GVW) or is a permanent trailer identification (PTI) trailer, the estimated weight may be shown on a Statement of Facts (REG 256) form.
  • A Declaration of Gross Vehicle Weight (GVW)/Combined Gross Vehicle Weight (CGW) (REG 4008) form for a commercial vehicle over 6,001 pounds unladen, except pickups.
  • A Vehicle/Vessel Transfer and Reassignment Form (REG 262) for the odometer disclosure statement, if applicable.
  • A smog certification, if appropriate.
  • The fees due.