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Chapter 12 - Dealers and Other Businesses Licensed by MVD

01/10/2014
3:51 PM

Section A.  Businesses that Must be Licensed by the Division
Section B.  "Dealer" Defined
Section C.  Auto Recyclers
Section D.  Vehicles in a Dealer's Inventory - Dealer Plates
Section E.  VIN Inspector Certification
Section F.  Dealer Titles with Wrong MCO
Section G.  Dealer Titles with Wrong Title

 

Section A.  Businesses that Must be Licensed by the Division

Revised December 7, 2011

Dealers and other businesses that must be licensed (66-4-1A)

A person, unless licensed to do so by the department (TRD-MVD), shall not carry on or conduct the active trade or business of:

Revised December 7, 2011

Dealers and other businesses that must be licensed (66-4-1A)

A person, unless licensed to do so by the department (TRD-MVD), shall not carry on or conduct the active trade or business of:

A dealer in motor vehicles
of a type subject to registration pursuant to the Motor Vehicle Code [66-1-1 NMSA 1978], including:

  1. trailers, but not trailers sold as kits;
  2. recreational vehicles designed to be towed;
  3. motorcycles over 55 cubic centimeters; and
  4. off-highway motor vehicles pursuant to the Off-Highway Motor Vehicle Act.

Dismantling any vehicle (auto recycler) 
for the resale of the parts. Any person possessing three or more wrecked, dismantled or partially wrecked or dismantled vehicles and selling or offering for sale a used vehicle part and who regularly sells or offers for sale used vehicles or used vehicle parts shall be presumed to be conducting the business of wrecking or dismantling a vehicle for the resale of the parts.

Wholesaling of vehicles
Any person who sells or offers for sale vehicles of a type subject to registration in this state, to a vehicle dealer licensed pursuant to the Motor Vehicle Code or who is franchised by a manufacturer, distributor or vehicle dealer to sell or promote the sale of vehicles dealt in by such manufacturer, distributor or vehicle dealer shall be presumed to be conducting the business of wholesaling.

Distributing of vehicles
Any person who has a physical presence in New Mexico, who distributes or sells new or used motor vehicles to dealers in New Mexico, and who is not a manufacturer shall be presumed to be conducting the business of distributing vehicles.

A title service company
Any person who for consideration prepares or submits applications for the registration of or title to vehicles shall be presumed to be engaging in the business of a title service company.

Application for license (66-4-1B)

Application for a dealer, wholesaler, distributor or wrecker of vehicles license or a title service company license shall be made upon the form prescribed by the department and shall contain the name and address of the applicant and, when the applicant is a partnership, the name and address of each partner or, when the applicant is a corporation, the names of the principal officers of the corporation and the state in which incorporated and the place where the business is to be conducted and the nature of the business and such other information as may be required by the department.

Every application shall be verified by the oath or affirmation of the applicant, if an individual, or, in the event an applicant is a partnership or corporation, by a partner or officer of the partnership or corporation. Every application shall be accompanied by the fee required by law.

 

Section B.  "Dealer" Defined

Revised December 7, 2011

Definition (66-1-4.4)

General definition:

"Dealer" generally means any person who sells or solicits or advertises the sale of new or used motor vehicles, manufactured homes or trailers subject to registration (see Chapter 2, Section B and Section C) in New Mexico.

Exceptions:

"Dealer" does not include:

  1. receivers, trustees, administrators, executors, guardians or other persons appointed by or acting under judgment, decree or order of any court;
     
  2. public officers while performing their duties as such officers;
     
  3. persons making casual sales of their own vehicles (limited to four vehicles in a calendar year; all vehicles must be titled in the individual's name);
     
  4. finance companies, banks and other lending institutions making sales of repossessed vehicles; or
     
  5. licensed brokers under the Manufactured Housing Act [60-14-1 NMSA 1978] who, for a fee, commission or other valuable consideration, engage in brokerage activities related to the sale, exchange or lease purchase of pre-owned manufactured homes on a site installed for a consumer.

 

Section C.  Auto Recyclers

Revised August 22, 2008

Auto recycler license (66-4-1.1)

  1. A person desiring to engage in the business of wrecking or dismantling vehicles for the purpose of reselling parts or scrap material shall apply to the department for an auto recycler license.
    A person possessing three or more wrecked, dismantled or partially wrecked or dismantled vehicles who regularly sells or offers for sale used vehicle parts or vehicle scrap material within the period of one year shall be presumed to be conducting business as an auto recycler.
     
  2. An auto recycler licensee shall not sell motor vehicles of a type subject to registration pursuant to the Motor Vehicle Code.

Wrecker and auto recycler are synonymous (18.19.4.7 NMAC)

According to the New Mexico Administrative Code (NMAC), “wrecker” means an “auto recycler.”

Nonrepairable vehicles (18.19.3.53 NMAC)

Unless an insurance company takes title to a nonrepairable vehicle, the owner of the nonrepairable vehicle may not transfer ownership to anyone other than a licensed auto recycler.

 

Section D.  Vehicles in a Dealer's Inventory - Dealer Plates

Revised February 5, 2016

Dealer plates (66-3-401 NMSA 1978)

Any vehicle that is required to be registered and that is included in the inventory of a dealer may be operated or moved upon the highways for any purpose, provided that the vehicle displays a dealer plate.

However, Section 66-3-401 B NMSA 1978 specifies that dealer plates are not to be provided for a dealer’s work or service vehicles, including parts or delivery vehicles; vehicles used to tow another vehicle; courtesy shuttles; or vehicles loaned to customers for their convenience.

Each dealer plate shall be issued for a specific vehicle in a dealer's inventory. If a dealer wishes to use the plate on a different vehicle, the dealer must re-register that plate to the different vehicle.

Maximum number of dealer plates (66-3-402 NMSA 1978)

A currently licensed dealer of new or used motor vehicles or motorcycles is eligible for a maximum number of plates based on the number of vehicles sold by the dealer in the previous year:

  1. One plate for a dealer who sold five or more but fewer than 50 vehicles;
  2. Three plates for a dealer who sold more than 50 but fewer than 100 vehicles;
  3. Five plates for a dealer who sold more than 100 but fewer than 500 vehicles;
  4. 10 plates for a dealer who sold 500 or more vehicles; or
  5. Five plates in a dealer's first calendar year in business, including the first full calendar year for dealers licensed on or after August 1st of any year.

Registration of vehicles in inventory (66-3-401 NMSA 1978)

Vehicles that are included in a dealer's inventory may be registered but need not be titled.

When a vehicle is no longer included in a dealer's inventory, and is not sold or leased to an unrelated entity, the dealer must title the vehicle and pay the motor vehicle excise tax that would have been due when the vehicle was first registered by the dealer. 

Instead of using dealer plates, a dealer may choose to register and title a vehicle in the dealer's inventory in the name of the dealership upon payment of the registration fee, but without payment of the motor vehicle excise tax (MVET), provided the vehicle is subsequently sold or leased in the ordinary course of business in a transaction that is subject to the MVET or the leased vehicle gross receipts tax.

Coaches and athletic directors (66-3-404.1 NMSA 1978)

A dealer may register a vehicle in the name of the dealer for the purpose of providing the use of a vehicle from the inventory of the dealer to a full-time coach or athletic director at any state-supported four-year institution of higher education in New Mexico.

Dealer plates provided for such vehicles do not count against the maximum number of dealer plates described above.

The vehicles need not be titled, but must be included in inventory for federal tax purposes and transferred to the full-time coach or athletic director under conditions that require the dealer to report the value of the use of the vehicle as income to the full-time coach or athletic director.

 Documentation needed to register dealers and coaches plates

  • Copy of front and back of title or MCO
  • Insurance - can be garage liability

The current year dealer’s license should be verified in the system in accompaniment to the provided documentation.

Dealer plates provided for such vehicles are processed at Vehicle Services Unit, in Santa Fe.  For more information dial 888-683-4636.

Expiration of dealer plates (66-3-403 NMSA 1978)

Every dealer plate expires at midnight on December 31 of each year. Renewal of all dealer plates shall be on or before December 31. 

Dealer plates not transferable to another dealer (66-3-404 NMSA 1978)

Dealer plates are not transferable between dealers.

Whenever a dealer ceases operation for any reason, the dealer shall surrender to the division any dealer plates issued to the dealer.

 

Section E.  VIN Inspector Certification

Revised December 7, 2011

Dealers Bureau VIN Inspector Classes

The Dealers Bureau offers Vehicle Identification Number (VIN) Inspector certification and re-certification classes in Albuquerque.

Classes are provided for employees of New Mexico motor vehicle dealers and title service companies, tow companies and auto recyclers, as well as for MVD employees and agents (including county, municipal and private retail offices).

VIN Inspector Certification and Recertification Requirements

Certification to conduct Level 1 and Level 2 vehicle identification number (VIN) inspections requires completion of a full 8-hour certification class. The class teaches the complete VIN program. A test is given and individuals must pass with a grade of 90 or better in order to obtain VIN credentials.

Every two years, a VIN inspector must take a 4 hour class to be re-certified. This class provides updated information to inspectors. Credentials are updated with a new expiration date. It is the responsibility of the VIN inspector to know when his or her VIN credentials expire and to contact the Dealers Bureau to register for an upcoming class.

Effective January 1, 2007, VIN credentials may no longer be extended pending recertification.

VIN Inspector Class Schedule

The next scheduled VIN Inspector Class can be found, with registration requirements, on the TRD-MVD Internet at http://www.tax.state.nm.us/mvd/vinclass.htm . This site is updated on a regular basis.

VIN Inspection Levels

  • Level I
    The level of competence in which an individual comprehends the formulation of a Vehicle Identification Number and Federal Safety Certification Label, and the factory attachment method of both items.
     
  • Level II
    The same as Level I and including the comprehension of vehicle engine and transmission numbering and derivative numbering systems.
     
  • Level III
    The level of competence in which a law enforcement employee comprehends the formulation of secondary identification numbers, methods of counterfeiting Public VIN (PVIN) Plates and Federal Safety Certification Labels. Additionally, as a law enforcement employee, this individual has access to confidential vehicle identification resources.
     
  • Level IV
    The same as Level III; and including the comprehension of and access to ALL resources needed to complete the identification and investigation of VIN-altered vehicle 

 

Section F.  Dealer Titles with Wrong MCO

Revised December 8, 2011

A Dealership Titles a Vehicle with the Wrong MCO (You did what?!)

Note: Though this problem is a more common with vehicle dealers, everything in this section applies equally, when a boat dealer makes the same mistake, to vessels and their MCOs (Manufacturer's Certificates of Origin) and hull identification numbers (HINs).

It is not uncommon for a dealership that is handling the title transaction for a new vehicle to mistakenly submit the wrong MCO, i.e. the MCO for a different vehicle, with a different VIN.

The result is that the customer (buyer) gets a title showing the wrong VIN. In some cases the MCO (and VIN) will be for a vehicle that the dealer has already sold to a different customer.

Dealers handle a huge amount of paperwork. Sometimes (sadly, but understandably) the paperwork gets mixed up. This is one of those situations. Fortunately, we can fix it.

How to Fix It

The dealership needs to re-register the vehicle with the correct MCO and the correct VIN to the correct customer, as follows:

  • The dealer must provide all original documents and must pay all fees (including any late fees for time elapsed from the original date of sale) to get the title and registration issued correctly to the owner with the incorrect title.
     
  • If there is a lien on the vehicle, a release of lien must be provided.
     
  • MVD will cancel the incorrect title.
     
  • The dealer then needs to request a refund, in the name of the dealership, on the incorrectly issued title.
     
  • In order to properly assign the vehicle the dealer needs to get a duplicate MCO from the manufacturer.
     
  • Once the dealer has the duplicate MCO, MVD (Field Operations) can then reactivate the VIN number.
     
  • The issuing office should process the MCO as a first time out-of-state title, using “NM” for the state and “MCO” for the out of state title number
     
  • After the title is processed, the dealership needs to verify that the VIN is correct.

This is a costly and lengthy process for dealers which is why it is imperative that they always be careful to use the correct MCOs when titling vehicles and vessels.

MVD field offices and title service companies should not attempt this process by themselves, but should contact Vehicle Services in Santa Fe for guidance and assistance as soon as it becomes apparent that a dealer has titled a vehicle or vessel with the wrong MCO.

 

Section G.  Dealer Titles with Wrong Title

Revised December 8, 2011

A Dealership Titles a Vehicle with the Wrong Title (You did what?!)

Note: Though this problem is a more common with vehicle dealers, everything in this section applies equally, when a boat dealer makes the same mistake, to vessels and their titles and hull identification numbers (HINs).

It is not uncommon for a dealership that is handling the title transaction for a used vehicle to mistakenly submit the wrong title, i.e. the title for a different vehicle, with a different VIN.

The result is that the customer (buyer) gets a title for the wrong vehicle with the wrong VIN. In some cases the title (and VIN) will be for a vehicle that the dealer has already sold to a different customer.

Dealers handle a huge amount of paperwork. Sometimes (sadly, but understandably) the paperwork gets mixed up. This is one of those situations. Fortunately, we can fix it.

How to Fix It

The dealership needs to re-register the correct vehicle with the correct title and VIN to the correct customer, as follows:

The dealer must provide all original documents and must pay all fees (including any late fees for time elapsed from the original date of sale) to get the title and registration issued correctly to the owner with the incorrect title.
 

  • If there is a lien on the vehicle, a release of lien must be provided.
     
  • The dealer must also provide:
    - duplicate title application in the name of the previous owner
    - power of attorney from the previous owner
    - copy of the previous owner’s driver’s license
    - copy of the previous owner’s title. 
    If the title is from another state, the dealer will have to go to the other state to get a duplicate title from that state.
     
  • MVD will cancel the incorrect title.
     
  • The dealer then needs to request a refund, in the name of the dealership, on the incorrectly issued title. The original title (issued in error) must be attached to the request for refund. A copy is not acceptable.
     
  • MVD (Field Operations) can then reactivate the VIN number.
     
  • The issuing office should process the title as a first time out-of-state title, using the correct state and title number
     
  • After the title is processed, the dealership needs to verify that the VIN is correct.

This is a costly and lengthy process for dealers which is why it is imperative that they always be careful to use the correct titles when titling vehicles and vessels.

MVD field offices and title service companies should not attempt this process by themselves, but should contact Vehicle Services in Santa Fe for guidance and assistance as soon as it becomes apparent that a dealer has titled a vehicle or vessel with the wrong title.

 

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