Occupational Licensing Upgrades of 2022
If you have a license which is managed by the California DMV Occupational License Division upgrades being put into effect in 2022 will effect you and your access to DMV.
California DMV will launch online services to occupational license holders and applicants.
Most of the online services will launch in the summer of 2022. Features available this summer will include:
- Applying for, renewing, or modifying a license
- Making online payments
- Helpful notifications about the status of applications and renewals
Starting February 28, applicants will use an online tool to schedule their initial site inspection.
This change will not impact current license holders.
The DMV will also provide the public an online form for submitting complaints.
The DMV is also upgrading and automating their internal technology and procedures.
Click HERE for the DMV Occupational Licensing Menu
Click HERE for the DMV Inspector Office Listing
Click HERE for the DMV Online FAQ for 2022
Click HERE to email DMV Direct to Occupational Licensing
Call us at 800-901-5950 if you wish us to complete your dealer license change/modification or original application.
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V12 Software Demo Site for 2022
Our recently reconditioned 30,000 original miles
V12 Mercedes Benz S600 is for sale.
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Click HERE for the V12 Dealers Website.
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Debt Collector Licensing Act of 2022
If you are a dealer which allows a buyer to spread down payments over time or if you are a dealer carrying in house financing you are required to immediately apply for this
new debt collector license.
Click HERE for the Debt Collector License Application.
Click HERE for the Debt Collector License Checklist.
The new debt collector license requires a $ 350. application fee, a $25,000 surety bond, a credit history / investigative fee of $ 165. and a new livescan fingerprint form for each member of your company acting in the collection capacity.
The new law is effective as of Jan 01, 2022 and you are not in compliance if you continue debt service and/or collection without this 2022 debt collector license.
Call us at 800-901-5950 if you wish us to complete your debt collector license application.
We charge $ 1500. over the state mandated items for this debt collector license application service.
From Michael Rogers, leading California Dealer Attorney:
There is a requirement for a new license which you will likely need as a “Buy Here Pay Here” dealer or automotive finance company by January 1, 2022. It is a Debt Collection License under SB908. (Note: this is not the same as a Finance Lenders License).
The Debt Collector’s License is required for businesses that “regularly” collect consumer debts, including their own debts.
Thus, a dealership that “regularly” engages in “buy here pay here” sales or an automotive finance company would need this license since they both collect consumer debt, which includes collecting regular payments from customers, past due balances, repossessing vehicles, and potentially suing customers to collect balances due on retail installment sale contracts.
The license also requires a $25,000 surety bond in addition to your dealership bond if you are a Buy Here, Pay Here dealer.
It is unlikely that dealerships conducting regular automotive sales and assigning those contracts need this particular license since debt collection is more of an incidental part of their business.
Here is what the statute says below and a full link to the bill can be found at:
The following persons are required to obtain a license to engage in the business of debt collection in California pursuant to the Debt Collection Licensing Act
(California Financial Code section 100000, et seq.):
· Any person who, in the ordinary course of business, regularly, on the person’s own behalf or on behalf of others, engages in debt collection.
· Any person who composes and sells, or offers to compose and sell, forms, letters and other collection media used or intended to be used for debt collection.
· Any person who engages in the business of a debt buyer. A debt buyer is any person or entity who regularly engages in the business of purchasing charged-off consumer debt for collection purposes, whether it collects the debt itself, hires a third party for collection, or hires an attorney-at-law for collection litigation (California Civil Code section 1788.50.)
From Ailene Short, Chief of DMV Occupational Licensing:
Debt collection is not enforced by DMV.
That said, pursuant to the Debt Collection Licensing Act, operative January 1, 2022, it appears used car dealers collecting payments (debt) from the sale of a used car must obtain a license pursuant to the Act (to collect those payments/debts) and are subject to the requirements/provisions of the Act.
Used car dealers should contact the Department of Business Oversight for answers to specific questions regarding licensure, including the question posed below regarding Buy-Here-Pay-Here dealers and any grandfathered licensing provisions.
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Electronic Report of Sale Fraud / Abuse and Misuse
The California DMV has noticed increasing misuse of the electronic ROS system where dealers are issuing multiple electronic ROS documents to extend the temporary operating permit beyond 90 days.
Click HERE for DMV Memo VIN 2202-03.
All California Dealers are required to subscribe to the Electronic Report of Sale system.
Temporary plates issued within the DMV Electronic Report of Sale system are valid for only 90 days.
All sales which are voided or unwound require an explanation on a statement of facts REG256.
DMV fees due must be paid on voided or unwound sales.
Registration Hint: Make the dealer the lienholder on voided or unwound sales so that the new title issued comes straight to the dealership.
Dealers are allowed to recover these required registration fees on a subsequent sale.
It has come to our attention that many dealers facing DMV registration issues often issue multiple reports of sale on the same deal to issue a second or third temporary plate.
DMV does not allow multiple reports of sale to extend temporary plates issued to a buyer.
DMV may take action to suspend or revoke the occupational license issued to a dealer or lessor-retailer for issuance of multiple reports of sale. Failure to post fees and register vehicles may result in cancellation of the occupational license.
CDTFA will be looking for sales tax on each report of sale issued. A dealer must void all reports of sale electronically to avoid sales tax on each issued report of sale.
Text Azita today @ 415-730-3137 for assistance.
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Dealer Report of Sale Invoicing
DMV is required to collect a $1 fee for each vehicle sold by a dealer or a lessor-retailer within 90 days of being notified by the Recovery Corporation that the balance of the Fund is less than 2 million dollars. Revenue from the fees is remitted to the Recovery Corporation until the balance of the Fund has reached 5 million dollars.
Beginning October 1, 2021, the Department of Motor Vehicles (DMV) will resume collection of a $1 fee for each vehicle sold by a dealer or lessor-retailer.
DMV will not collect more than $2500 from a dealer or lessor-retailer within a calendar year.
DMV may take action to suspend or revoke the occupational license issued to a dealer or lessor-retailer for failure to pay the invoiced amount. Past due fees will be collected from the dealer’s or lessor-retailer’s surety company, which may result in automatic cancellation of the occupational license.
Invoice payments can only be sent to:
DMV - OL Collections
PO Box 932342 MS-L224
Sacramento, CA 94232-3420
Click here to update your official dealer mailing address:
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DMV Dealer Records Storage
DMV requires all dealer business records to be stored & available for 3 years.
New regulations require onsite storage for 90 days and allow offsite storage for the remaining 3 year period.
Remember upon request every dealer must be able to produce any business record to the DMV within 2 business days.
916-229-3126
DMV Spot Checks for Car Dealers
The California DMV has two branches which may conduct a spot check of your dealership. You may see a DMV Inspector or you may see a DMV Investigator.
Having a computer in your office is now an essential component of dealership compliance.
One focus of these spot checks is to determine if the dealer is printing required forms and maintaining correct vehicle records.
We have assembled a list of useful links to maintain dealership compliance.
Every vehicle in your inventory must have a jacket at the licensed location. In this file you should collect all relevant documentation on the vehicle.
Additional Dealer Plates
DMV requires this DMV form sent to your DMV Inspector when additional dealer plates are needed.
Lost / Stolen Dealer Plates
DMV requires a police report and a DMV form sent to them when a dealer plate is lost or stolen.
Click Here to obtain the lost / stolen dealer plate form.
NMVTIS Vehicle History Report
VinAudit is the most comprehensive report system for NMVTIS.
Click Here to review the dealer vehicle history account program.
NHTSA Recall Check
Proposed legislation will require recall status to be disclosed to the retail customer.
Click Here to check your inventory vehicles for open recalls.
NICB Stolen Vehicle Check
Nothing can be as costly as losing an inventory vehicle because its reported stolen.
Dealer License Modification
DMV requires a DMV form sent to them when a dealer wants to modify their dealer license. Inspection may be required.
Click Here to obtain the dealer license modification form.
NHTSA VIN Decoder
Find out all the specifics of any your vehicle with this VIN Decoder.
BAR Smog Check
Your dealer smog is good for two years. Every vehicle offered for sale must have a current smog.
Electronic Report of Sale
Fairfax runs the dealer system for reporting your sales to the California DMV. Fairfax Help Line is 844-425-5824.
Click Here to access your Fairfax Quick Tags Account.
Sales Tax Rates
Remember that you must charge the customer sales tax at the rate of their vehicle registration location. This chart enables you to determine the correct tax.
Click Here to check the sales tax by buyers location.
DMV Registration Fees
DMV helps you to estimate the fees due on any vehicle that you sell.
Click Here for the DMV Registration Fees Due System.
FTC Online Buyers Guide
Every vehicle offered for sale must have an FTC buyers guide posted.
EZ
Simple
Compliance
REAL Dealers helping Dealers
We are BPA Registration Agents.
We issue license plates & registration stickers.
We print registration cards & assign lienholders.
Text Azita 415-730-3137 for excellent service.
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