Vehicle Titling and Registration Notice

Vehicle Titling and Registration Notice

November 22, 2004

To: All Virginia Motor Vehicle Dealers

From: D.B. Smit,
Commissioner, Department of Motor Vehicles

This notice outlines dealer requirements for titling and registering vehicles in Virginia and new procedures for obtaining and issuing 30-day temporary plates. The Department of Motor Vehicles (DMV), the Motor Vehicle Dealer Board (MVDB), the Virginia Automobile Dealers Association (VADA), and the Virginia Independent Automobile Dealers Association (VIADA) worked together to highlight statutory requirements and develop new procedures, which take effect December 15, 2004, that ensure accuracy and consistency for Virginia’s motor vehicle dealers.

Titling and Registration
Virginia motor vehicle dealers providing vehicle titling and registration services for customers are required by law to make application for title and registration within 30 days of the sale. Collecting the needed information and documentation needed to complete a vehicle sale can be a time-consuming process. Recognizing this, DMV and the dealer community have developed procedures to provide flexibility and help you maintain compliance with Virginia law.

The enclosed chart is a summary of titling and registration procedures dealers must use following the sale of a vehicle. The summary provides the varying transaction processing steps from the initial sale of the vehicle through a 90-day time period.

In instances where a dealer cannot provide the MCO or an assigned title at the time of their initial visit to a DMV service outlet, DMV will create a title record but place a “hold” on the issuance of the title. The dealer will be provided with a VSA-64 form to be used as a return form. When the dealer has obtained the MCO or the assigned title, they can return to a Customer Service Center (CSC) to have the title “held” removed.

DMV has established dealer service windows in all CSCs to expedite this process. Upon the return visit to a CSC to remove the title “held”, the dealer should bring their VSA-64 and the MCO or assigned title. Go directly to the dealer service window, bypassing the information desk. Please note that dealer service windows have been established for only two purposes: (1) removing title “helds” and (2) dropping off dealer work for batch processing. All other dealer transactions should be handled utilizing the normal process of going first to the information desk in the CSC and obtaining a queuing number.

DMV and the MVDB will aggressively monitor and enforce compliance with the requirement to title the vehicle within 30 days. Penalties for non-compliance may include the assessment of civil penalties, suspension of the dealer’s ability to issue temporary plates, suspension or revocation of the dealer’s license or criminal sanctions.

Temporary Plates
Dealers applying for approval to issue a second or third set of 30-day temporary plates will be required to submit an application to DMV, the DSD 40 (Motor Vehicle Dealer Application to Issue a Subsequent Set of 30-day Temporary Plates), in addition to the title application, supporting documentation and required fees and taxes. When applying for the third set of temporary plates, the dealer must obtain written authorization from DMV before issuance. The enclosed chart outlines the procedures dealers must follow when issuing more than one set of temporary plates for a vehicle.

The number of 30-day temporary plates a dealer may purchase will be limited to an amount not to exceed three times the dealer’s actual retail sales for the previous dealer license year. New dealerships will be allowed sixty 30-day temporary plates per licensed salesperson. Dealerships with no sales history will be permitted to purchase up to sixty 30-day temporary plates.

If a dealership experiences increased sales that warrant purchasing additional 30-day temporary plates, the dealer may apply for a limit increase. To apply, dealers must mail or fax the DSD 42 form, Motor Vehicle Dealer Application to Increase 30-day Temporary Plate Purchase Limit, to DMV Dealer Services at the address or fax number on the form. By providing a detailed justification, dealers will assist DMV in the review of the application. DMV will respond within three business days by mail, fax or e-mail as requested by the dealer on the application.
The DSD 40 and the DSD 42, as well as all DMV forms, are available on the agency’s web site at http://www.dmvNOW.com/webdoc/forms/index.asp and in all DMV CSCs.

When new purchase limits take effect December 15, 2004, the number of 30-day temporary plates that a dealer has purchased within the current dealer license year will be subtracted from the dealer’s purchase allowance for the current dealer license year and future purchases will be limited accordingly.

In early 2005, dealers will be required to designate individuals as authorized purchasers of 30-day temporary plates. Temporary plates will be sold only to dealer owners and dealer operators as well as designated purchasers.

The statutory requirements and procedures for vehicle titling and registration and issuing 30-day temporary plates provide dealers with flexibility to serve customers, while ensuring greater security and consistency. We hope the enclosed chart will be helpful to you. If you have questions about the requirements or news procedures, please contact DMV at 1-800-435-5137 or 1-866-DMV-LINE.