ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: TRANS DPA 8-1-0-0

HB 2378: motor vehicle transactions; notices; dealers

Sponsor:  Representative Biasiucci, LD 5

House Engrossed

 

Overview

Adds motor vehicle transaction requirements.

History

If a sale or lease of a motor vehicle for a motor vehicle dealer or a lessor to a customer is conditioned on final approval of financing by a lender or lessor, the motor vehicle dealer or lessor is required to retain title transaction until financing is finally approved or the traded motor vehicle is returned to the customer. Any remedy for a violation of this requirement cannot be waived, modified or limited by agreement or contract (A.R.S. § 44-1371).

Motor vehicle dealer is defined as a new motor vehicle dealer, a used motor vehicle dealer, a public consignment auction dealer, a broker or a wholesale motor vehicle auction dealer, excluding a person who comes into possession of a motor vehicle as an incident to the person's regular business and who sells, auctions or exchanges the motor vehicle (A.R.S. § 28-4301).

Pursuant to A.R.S. § 28-4362, vehicle dealer license applications are required to be accompanied by a bond that:

1)    Is in a form and amount prescribed by the Arizona Department of Transportation (ADOT);

2)    Is executed by a surety company;

3)    Is cancellable only at least 60 days prior notice to ADOT;

4)    Inures a person who suffer loss because of:

a)    Nonpayment by the dealer of customer prepaid title, registration or other related fees or taxes; and

b)    The dealer's failure to deliver in conduction with the sale of a vehicle a valid vehicle title certificate free and clear of any prior owner's interests and all liens except a lien created by or expressly assumed in writing by the buyer or the vehicle.

Pursuant to A.R.S. § 28-2095, any person who sells a vehicle for which a restored certificate of title has been issued and who knows a restored salvage certificate of tile has been issued for the vehicle is required to disclose to the buyer before completion of the sale that the vehicle is a restored salvage vehicle.

Provisions☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

Motor Vehicle Price and Advertising (Sec. 5)

1.    Prohibits a motor vehicle dealer from advertising a motor vehicle's sales price that includes a deduction for a rebate or discount as the total sales price unless the rebate or discount is available without restriction to every consumer.

2.    Allows a rebate or discount with qualifications to be advertised separately if the qualifications are clearly and conspicuously disclosed in the advertisement.

Unlawful Motor Vehicle Transactions (Sec. 5)

3.    States that a violation under the motor vehicle transaction statute constitutes an unlawful practice under the Consumer Fraud Act.

4.    Allows the Attorney General to investigate and take appropriate action prescribed by the Consumer Fraud Act.

Miscellaneous

5.    Clarifies that a seller of a vehicle with a restored salvage title must clearly and conspicuously disclose to the buyer in writing before completion of the sale that the vehicle is a restored salvage vehicle and has a restored title. (Sec. 1)

6.    Requires a vehicle dealer license application to be accompanied by a bond that additionally:

a)    Insure a person who suffers loss because of the dealer's failure to comply with an agreement to pay off outstanding loans on trade-in vehicles; and

b)    Covers nonpayment of trade-in vehicles. (Sec. 2)

7.    Makes technical and comforting changes. (Sec. 2-4)

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11.  Initials JT              House Engrossed

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