REVISED BUYERS GUIDE AND NEW RULES EFFECTIVE THIS WEEK: JANUARY 27
As most dealers are already aware, the Federal Trade Commission (FTC) revised the Buyers Guide that must be displayed on used vehicles, effective January 27, 2017. However, there is transition period of one year, so existing supplies of the old Buyer’s Guides can be used. Further, it seems that some key suppliers may not have the new stock available yet.
* * * Dealers have up to one year to use existing stock of the old buyers guide forms * * *
There is also some confusion over the use of the prior forms. One of the key changes in the new Buyers Guides allows a dealer to disclose details of what are referred to as "non-dealer warranties" – such as certified used car programs, remaining factory warranty terms, or similar coverage that is not provided by the dealership. While the FTC has made provision to add this type of disclosure to the "old" Buyers Guides, this is optional. When the "new" Buyers Guides are obtained, dealerships can implement the information about such non-dealer warranty coverage.
CADA is expecting to be able to supply the new Buyer’s Guides in the next week or so. Please check back with us when you are ready to order new supplies. Call 303.831.1722.
INNOVATIVE VEHICLE TAX CREDITS: POINT OF SALE ASSIGNABILITY - TRAINING BY DEPT. OF REVENUE
WHEN: Monday, January 30th, 2017, 2:30-3:30pm
WHERE: 455 Sherman St. in Denver
The Colorado Department of Revenue (DOR) would like to offer training to interested members of the Colorado Automobile Dealer Association and financing entities who work with vehicles that qualify for the innovative motor vehicle credit. Starting on January 1, 2017, purchasers or lessees of new innovative motor vehicles may elect to transfer the credit for the vehicle to the financing entity in exchange for the full nominal value of the credit.
If a transfer of the credit occurs, the financing entity is required to report, electronically, to the Department of Revenue, within 30 days of the purchase or lease, information contained in the election statement. This training is offered to assist you in fulfilling the electronic reporting requirements.
- IMPORTANT NOTE: The rules for assignability have not yet been issued by the Department of Revenue. Lenders may be awaiting those final rules before opting to participate. Dealers should inquire with lenders about their participation and processes for assignability, including an allowable administrative fee and other details of this option. This training is specifically regarding the reporting of an election for lenders once they decide to participate.
Training is scheduled for one hour. Depending on interest, we may break the group into several sections. Our training room is located at 455 Sherman St. in Denver. The facility is secure, and you will be escorted in and out of the training room. Please come prepared with any elections you have been involved with since January 1, 2017. This training will allow you to submit the information required while on site.
CLICK HERE for the January 3rd issue of Open Road, Regulatory & Legal Updates, for our prior alert/status on the innovative tax credits for 2017.
Follow this link: https://www.colorado.gov/pacific/sites/default/files/DR0618.pdf to a copy of the DR 618, which is the election statement.
If you have questions on any legal or regulatory topic, please contact:
Tammi McCoy, VP, firstname.lastname@example.org, 303.282.1449
Tim Jackson, President, email@example.com, 303.282.1448
DISCLAIMER: CADA is not authorized to dispense legal advice. The information contained in this weekly email is intended to provide important updates and reminders regarding statutes, litigation, and regulations. CADA always advises that dealers should consult legal counsel on the specifics of any laws or regulations to ensure proper compliance.