TECHNICAL ADVISORY

DIVISION OF MOTOR VEHICLES

 

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To:  DMV Regional Offices

From:  Carl A. Ford, Director

Subject:  Consignment Sales Between Dealers

Advisory Date:  04/24/06                               Implementation Date:  Immediately

Advisory Number:     BFO06-01

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Recently it has come to our attention that dealers are consigning vehicles to other dealers.  Example:  Dealer "A" has 50 vehicles on their lot and dealer "B" only has 10 vehicles on his lot.  Dealer A tells dealer B that they will pay him a commission to place some of dealer A's vehicles on dealer B's lot.  The titles are not reassigned.

 

This causes several issues including, difficulty when performing records inspections, consumer protection issues, and most importantly, it is not permitted in law. 

 

Florida Statutes 320.27 (7) reads in part, “ CERTIFICATE OF TITLE REQUIRED.--For each used motor vehicle in the possession of a licensee and offered for sale by him or her, the licensee either shall have in his or her possession or control a duly assigned certificate of title from the owner in accordance with the provisions of chapter 319, from the time when the motor vehicle is delivered to the licensee and offered for sale by him or her until it has been disposed of by the licensee, or shall have reasonable indicia of ownership or right of possession, or shall have made proper application for a certificate of title or duplicate certificate of title in accordance with the provisions of chapter 319. A motor vehicle dealer may not sell or offer for sale a vehicle in his or her possession unless the dealer satisfies the requirements of this subsection. Reasonable indicia of ownership shall include a duly assigned certificate of title; in the case of a new motor vehicle, a manufacturer's certificate of origin issued to or reassigned to the dealer; a consignment contract between the owner and the dealer along with a secure power of attorney from the owner to the dealer authorizing the dealer to apply for a duplicate certificate of title and assign the title on behalf of the owner.”

 

For motor vehicle dealers, the consignment that is contemplated is from a non-dealer owner to a dealer, not between dealers.  The language in statute is very specific.  It is intended to refer to the titled owner, not a person or business to whom the vehicle has been reassigned.  Only the titled owner can give another person or business power of attorney to apply for a duplicate title or assign title on their behalf. 

 

 The requirements for recreational dealers are located under 320.771.  It reads, "(10)  EVIDENCE OF TITLE REQUIRED.--The licensee shall also have in his or her possession for each new recreational vehicle a manufacturer's invoice or statement of origin, and for each used recreational vehicle a properly assigned certificate of title or registration certificate if the used recreational vehicle was previously registered in a nontitle state, from the time the recreational vehicle is delivered to the licensee until it has been disposed of by the licensee.

 

The statute does not mention reasonable indicia.    Therefore, a RV dealer should not be permitted to sell another RV dealer's used vehicle on a consignment basis.  To do so would conflict with the provisions quoted in 320.771(10) that requires the selling dealer to have a properly assigned certificate of title or registration, "from the time the recreational vehicle is delivered to the licensee until it has been disposed of by the licensee."  Chapter 320.771, Florida Statutes, contains no corresponding consignment language like that found in 320.27(7) for motor vehicle dealers.

 

If you have any questions or need further clarification, please contact your Help Desk Representative.

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