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treat customers well

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car dealers…..are you tired of expensive carfax reports ???

Sign up for a VinAudit Dealer Account

Please register here to receive a VinAudit.com Dealer Account for bulk access to NMVTIS reports. For instant activation, please fill all required fields.

Your Name:
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Full Address:
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5 helpful tips for getting your DMV wholesale car dealer license

  1. Sign up for our 6 hour Car Dealer Pre-Licensing Class. Follow the steps that you are taught, and then get approved by the California DMV as a wholesale dealer.
  2. Utilize the Web. Did you know that most wholesale dealers search the internet prior to purchasing a vehicle? A good wholesaler will recognize a low priced car at auction buy it and resell it a week later at the same auction.
  3. Keep in mind that delivery of the vehicle to the buyer must occur at the sellers licensed location. Some wholesalers will buy seasoned stock ( vehicles which are front line ready on a retailers lot but approaching 60 days in inventory ) and swap them out for vehicles freshly obtained. This allows the used car sales manager to restart the clock on that seasoned stock. These deals are often done book for book, the wholesaler ends up with added value. In a front line ready car the wholesaler can sell to another dealer, but it will often take a series of these book for book trades before you can actually see profits. Many small used car lots do not have the time to go to auction. A good wholesaler can stock these smaller lots and make a small profit on each car.
  4. Don’t ever consign a vehicle to another dealer. The wholesale license is a good starting place for the beginner; lesser bond, easier zoning and access to the market. Dealer plates and insurance are included in the wholesale package but as a wholesaler one can only buy and sell within the industry. That means as a wholesaler you can sell only to other dealers, there is no buying off the street. If and when a wholesaler has a vehicle to sell to the public he/she may draft that sale through a licensed retailer, this is call this a drafted sale.
  5. Remember the drafted sale creates liability for the retailer. Typical draft fee is $ 500. We advise the following: no loss selling ( wholesaler must sell higher than acquisition cost ), smog safety and verification provided by wholesaler, wholesaler as contact person on the buyers guide, statement from wholesaler assuming all liability if customer is not happy. Then the retailer collects and pays all taxes and fees, and sends the documents to DMV for processing.

Tips

  • Wholesale Dealers cannot sell to the Public (only to other Car Dealers).
  • Wholesale Car Dealers have a lower bond requirement and spend less on insurance.
  • When selling to the public you must use a Drafted Sale.
  • Wholesale dealers provide a much needed asset to the retail car market. Wholesalers provide cars to retail dealers and often facilitate trades among dealers. A good car buyer will make a little on each car (perhaps $ 300), but can only sell up to 24 cars in one year.

Related wikiHows

Sources and Citations

jon von arx is the car dealer insurance godfather

von Arx Logo

COMMERCIAL INSURANCE SERVICES

General Liability – Commercial Property – Garage Liability – Commercial Auto – Umbrella & Excess

Worker’s Compensation – Professional Liability – Medical/Healthcare – Ocean Marine

Since 1985 we have provided affordable premiums with the correct coverage

for various business entities throughout California. We are experts in “problem solving”

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Receive service with your premium payments… Give us a call to see how we can help.

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Toll Free 800.986.6279 x 14 | Fax 800.818.1095

Jon L. von Arx,
President of J.L. von Arx & Associates Insurance Services

CA Lic. # 0702245

 

dmv car dealer application

Adobe Acrobat Reader is required to view, fill out and print forms. To incorporate the latest accessibility features download of the latest version of Acrobat Reader may be required. If you have problems with Acrobat Reader or our PDF form, select PDF Troubleshooting.

Occupational Licensing Forms page

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bad ass

have you wondered about becoming a licensed car broker ???

An autobroker’s endorsement requires payment of fees as required by subdivision (d) of Section 9262 of the California Vehicle Code.

A dealer may not engage in brokering a retail sales transaction without having an autobroker’s endorsement to their dealer’s license.

Upon issuance of an autobroker’s endorsement to a dealer’s license, the department shall furnish the dealer with an autobroker’s log.  The autobroker’s log remains the property of the department and may be taken at any time for inspection.

The autobroker’s log must contain the following information with respect to each retail sale brokered by that dealer:

  • Vehicle identification number of brokered vehicle
  • Date of brokering agreement
  • Selling dealer’s name, address, and dealer number
  • Name of consumer
  • Brokering dealer’s name, address, and dealer number (CVC Section 11735)

A dealer who brokers a motor vehicle sale shall deposit directly into a trust account any purchase money, including purchase deposits, it receives from a consumer or a consumer’s lender.

  • All trust accounts required by CVC Section 11737 shall be maintained at a branch of a bank, savings and loan association, or credit union regulated by the state or the government of the United States.

downloadable dmv car dealer license handbook

Introduction

Chapter 1 — General Registration Information

Chapter 2 — General Information – Licensees

Chapter 3 — Collection and Payment of Fees and Penalties

Chapter 4 — Use Tax

Chapter 5 — Odometer Mileage Reporting

Chapter 6 — New Vehicles Sold by California Dealers

Chapter 7 — Miscellaneous Originals

Chapter 8 — Report of Sale – Used Vehicles

Chapter 9 — Wholesale Vehicle Transactions

Chapter 10 — Renewals

Chapter 11 — Transfers

Chapter 12 — Nonresident Vehicles

Chapter 13 — Commercial Vehicles

Chapter 14 — Permanent Trailer Identification (PTI)

Chapter 15 — Off-Highway Vehicles

Chapter 16 — Special Equipment

Chapter 17 — International Registration Plan (IRP)

Chapter 18 — Lien Sales – Abandoned – Abated Vehicles

Chapter 19 — Salvage – Nonrepairable – Junk Vehicles

Chapter 20 — Duplicates and Substitutes

Chapter 21 — Special Plates

Chapter 22 — Corrections and Adjustments

Chapter 23 — Bonds and Certifications

Chapter 24 — Vessels

Chapter 25 — Permits and Decals

Chapter 26 — Refunds

Chapter 27 — Information Requests

Chapter 28 — Bundle Listings

Chapter 29 — Form Specifications

Chapter 30 — Inquiries

Appendix 1A — County and City Fees

Appendix 1B — Air Quality Partial Counties (PDF)

Appendix 1C — Partial Biennial Smog Counties Zip Codes (PDF)

Appendix 1D — Tables of Penalty Dates (PDF)

Appendix 1E — California License Plate Data (1914-1972) (PDF)

Appendix 1F — Fees (PDF)

Index

FTC tips for the red flag rules

+++

Are you complying with the Red Flags Rule?

The Red Flags Rule requires many businesses and organizations to implement a written Identity Theft Prevention Program designed to detect the warning signs — or “red flags” — of identity theft in their day-to-day operations. By identifying red flags in advance, businesses will be better equipped to spot suspicious patterns that may arise — and take steps to prevent a red flag from escalating into a costly episode of identity theft.

Resources on this site can help business people educate their staff and colleagues about complying with the Red Flags Rule.

What Compliance Looks Like

Your Identity Theft Prevention Program is a “playbook” that must include reasonable policies and procedures for detecting, preventing, and mitigating identity theft. Your Program should enable your organization to:

  1. identify relevant patterns, practices, and specific forms of activity — the “red flags” — that signal possible identity theft;
  2. incorporate business practices to detect red flags;
  3. detail your appropriate response to any red flags you detect to prevent and mitigate identity theft; and
  4. be updated periodically to reflect changes in risks from identity theft.

The Red Flags Rule also includes guidelines to help financial institutions and creditors develop and implement a Program, including a supplement that offers examples of red flags.

The FTC and the federal financial agencies have issued Frequently Asked Questions and answers to help businesses comply with the Rule.

Who Must Comply with the Red Flags Rule?

The Rule requires “financial institutions” and “creditors” that hold consumer accounts designed to permit multiple payments or transactions — or any other account for which there is a reasonably foreseeable risk of identity theft — to develop and implement an Identity Theft Prevention Program for new and existing accounts. The definition of “financial institution” includes:

  • all banks, savings associations, and credit unions, regardless of whether they hold a transaction account belonging to a consumer; and
  • anyone else who directly or indirectly holds a transaction account belonging to a consumer.

A change in the law on December 18, 2010 amended the the definition of “creditor,” and limits the circumstances under which creditors are covered. The new law covers creditors who regularly, and in the ordinary course of business, meet one of three general criteria. They must:

  • obtain or use consumer reports in connection with a credit transaction;
  • furnish information to consumer reporting agencies in connection with a credit transaction; or
  • advance funds to — or on behalf of — someone, except for funds for expenses incidental to a service provided by the creditor to that person.

Bookmark this site and check it often for revisions that reflect changes in the law.

 


 

 

Related Topics

Protecting Personal Information: A Guide for Business

Are you taking steps to protect personal information? Safeguarding sensitive data in your files and on your computers is just plain good business. After all, if that information falls into the wrong hands, it can lead to fraud or identity theft.

Avoid ID Theft: Deter, Detect, Defend

A one-stop national resource to learn about the crime of identity theft. It provides detailed information to help you deter, detect, and defend against identity theft.

OnGuard Online

Provides practical tips from the federal government and the technology industry to help computer users be on guard against Internet fraud, secure their computers, and protect their personal information.

Privacy Initiatives

Educates consumers and businesses about the importance of personal information privacy, including the security of personal information.

bring your wealth of experience to the #1cardealerschool

+++++

if you have experience in the car business

we have openings for qualified teachers

we run the largest car dealer school in america

we are certified by the california dmv since 1998

gotplates.com

+++++

the retail side of this business is complex

the wholesale side could not be more simple

teaching car dealer school can be fun and exciting

we deal with over 50 cultures in california

+++++

we teach old scholl business principles

honor your obligations

treat customers well

respect yourself and your staff

making money can be fun and exciting

+++++

if you are interested

we will need a resume and a background check

please call Charlotte today

800-901-5950

+++++

 

gap insurance ???

Kimberly Lankford

If you’re leasing a car, you may be on the hook for this coverage. Otherwise, just say no.

By Kimberly Lankford,

Do I need “gap insurance” when I buy a new car? The dealer is offering it for about $600.

You may be required to include gap coverage in your monthly payments if you lease a vehicle, but otherwise you’re better off self-insuring.

Gap insurance covers the difference between the amount you owe on your car loan and the amount your auto insurance company will pay out if you total the car. Car dealers and lenders often offer gap insurance for $500 to $700, and you’ll pay interest on that amount if it’s rolled into the loan.

Gap insurance sounds like a good idea because your car loses value as soon as you drive it off the dealer’s lot. So if you make a low down payment (less than 20%) and wreck your car soon after buying it, you could owe more on the loan than the car is worth. And if you have a long-term loan — 48 months or longer — it could be quite a while before your loan balance is less than the car’s value.

If you’re uncomfortable with that risk, you may be able to add gap coverage to your auto policy for less than the lender charges for stand-alone protection. You’ll typically pay 5% to 6% of the cost of your collision and comprehensive coverage for gap insurance, says Des Toups, managing editor of CarInsurance.com — or $50 to $60 per year if collision and comprehensive cost $1,000.

You can drop gap coverage when your loan balance is close to your car’s value. Check values at KBB.com or Edmunds.com.

Read more at http://www.kiplinger.com/article/insurance/T004-C001-S003-why-you-don-t-need-gap-insurance.html#DKleVEBTMfVjhF30.99

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new rules for BHPH car dealers

 

AB 1534 (Wieckowski)
Vehicles: dealers: used vehicle sales: labeling requirements.

Existing law regulates the accuracy of information provided to consumers during vehicle sales, including the information contained in advertising, brochures, and manuals, as specified.

Existing law also requires manufacturers, as specified, to disclose certain information regarding a vehicles engine, as specified, by affixing a label on the vehicle. A violation of these provisions is an infraction.

This bill requires a licensed dealer, as defined, to affix to and to prominently and conspicuously display a label on any used vehicle offered for retail sale that states the reasonable market value of the vehicle.

The bill requires the label to contain specified information used to determine the vehicles reasonable market value and the date the value was determined.

The bill requires a licensed dealer to provide to a prospective buyer of the used vehicle a copy of any information obtained from a nationally recognized pricing guide that the licensed dealer used to determine the reasonable market value of the vehicle.

The bill requires the label to meet all the following conditions:

 

a)   Be in writing with a heading that reads “REASONABLE

MARKET VALUE OF THIS VEHICLE” in at least 16-point bold

type and text in at least 12-point type.

 

b)   Be located adjacent to the window sticker identifying

the equipment provided with the vehicle, or if none,

located prominently and conspicuously on the vehicle.

 

c)   Contain the information used to determine the reasonable

market value, including, but not limited to, use of a

nationally recognized pricing guide for used vehicles, and

the date the reasonable market value was determined.

 

d)   Indicate that the reasonable market value is being

provided only for comparison shopping and is not the retail

sale price or the advertised price of the vehicle.

 

The bill defines “nationally recognized pricing guide” as including,

but not limited to, the Kelley Blue Book, Edmunds, the Black

Book, or the National Automobile Dealers’ Association (NADA)

Guide.

 

 

 

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great time to become a used car dealer

Jeanette Pavini

JEANETTE PAVINI’S BUYER BEWARE Archives | Email alerts

This is a fantastic time to buy a used car

 By Jeanette Pavini

With the average price of used cars at a four-year low and the proliferation of certified preowned programs offered by car makers, this is a great time to be shopping for a used car. But you need to be well-prepared to get your money’s worth when you drive off the lot.

Some of the best news for used-car shoppers is that pent-up demand is driving up sales of new cars. New-car sales are rebounding strongly and Edmunds.com experts say that trend will continue next year. Plus, the number of expiring leases also is increasing. All this points to a bigger inventory of used cars.


Shutterstock.comEnlarge Image

It also means some models are sitting on the lots a bit longer, and the prices are going down. According to Edmunds.com, the average price for used cars in the third quarter was $15,617, the lowest it has been in four years.

If you’re after a Volvo, GMC or Chevrolet, then you’re in luck. According to Edmunds.com, those three brands sat on lots longer than others and therefore typically carried a lower price. But if you’re after a Honda, Toyota or Lexus, you may find an above-average price. These cars were most popular in the third quarter.

While timing and prices are important, there is also work to be done before you buy a used car, whether it’s from a dealer or an individual. Don’t just drive the car around the block. Give the car a thorough test drive on highways and hills.

Look for an inspection checklist like this used-car work sheet from DMV.org. It reminds you of all the things you need to do, like bringing a CD to test the car stereo, checking the windshield wipers, and making sure the car manual is in the glove department.

Research before you shop. Use a site like Edmunds.com, Kelley Blue Book’s KBB.com orTrueCar.com to estimate the value of the car. This will help you determine a fair price before you go into negotiations.

You may also want to research typical repair and maintenance costs for the vehicle you’re interested.

Some cars are far more expensive to fix and maintain than others, so even if you get a low price, you might still be paying big bucks in the long run. You can use calculators like Edmunds.com’s True Cost to Own feature. It calculates a variety of factors including maintenance and repairs to determine how much your vehicle will actually cost you. Also, check with your insurance company to see if your insurance will go up.

The Federal Trade Commission recommends checking an independent database service to review a vehicle’s history. They suggest the Justice Department’s National Motor Vehicle Title Information System. There is a small fee to receive a report, ranging from about $2.95 to $12.99. per report.

This service is good for more than just cars. You can find reports on buses, trucks, motorcycle, RVs, motor homes—even tractors. The report covers information about the vehicle’s title, odometer, and some damage history.

The National Insurance Crime Bureau has a free database where you enter a car’s vehicle identification number, or VIN, and can access a car’s history to see if it has been reported as a stolen but not recovered car, or a salvage vehicle. According to the NICB, the vehicles stolen the most often in 2012 were the Honda Accord, Honda Civic, Ford full-size pickup, Chevrolet full-size pickup, and Toyota Camry.

The FTC also suggests checking with a local consumer protection agency or your state’s attorney general’s office to find out if a dealer has any unresolved complaints.

The so-called Used Car Rule requires dealers to post a buyer’s guide in each used car (with the exception of dealers in Maine and Wisconsin). It must state whether a vehicle is being sold “as is” or under warranty, including how much of the repairs a dealer will cover under that warranty. Among other things, it will also tell you to have the car inspected by an independent mechanic before you purchase it. This is advice you should definitely take.

And finally, in many states you can purchase the right to a “cooling-off period.” You pay a fee based on the purchase price and if for any reason you change your mind, you have the right to bring the car back within a specified time period. Alternately, some states don’t have cooling-off periods, so check with your state’s motor vehicle department.

Emmy Award-winning broadcast journalist, documentarian and author Jeanette Pavini covers consumer and investigative news for numerous publications, radio and television. Jeanette is based in the San Francisco Bay Area.

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Your Car Dealer Bond

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$ 50,000 dealer bond for unrestricted wholesale, retail selling and auto-brokering

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#runtheVIN…odometer fraud is rampant on craigslist

By Eric Rasmussen

KTVU.com

OAKLAND, Calif. —

You might think digital odometers on modern vehicles car can’t be rolled back, but DMV officials tell 2 Investigates that they are even easier to roll back than older odometers.

The amateur videos posted on the Internet look like something out of a video game.  In a matter of seconds, digital odometers are rolled back, sometimes by tens of thousands of miles, at the touch of a button.

Investigators say it’s only some of the evidence of a troubling rise in odometer fraud in California.  A recent study by vehicle history reporting website Carfax found more odometers are illegally “rolled back” in California than anywhere else.

The same study reports more than 295,000 cars with rolled back odometers were on the road in California.  California was also at the top of the list of states with the higest percentage of rolled back odometers, ahead of Nevada, Massachusetts, New York, and Texas.

The U.S. Department of Justice estimates victims of this kind of fraud lose an average of $4,000 per vehicle.

Keat Fleckner of Livermore is among the recent victims.

Fleckner bought a 1990 Toyota pick-up with about 150,000 miles for $2600.  He didn’t know he had been duped until his engine blew out.

“The first thing that goes through your mind is, I’m in the middle of the highway and my truck’s not running,” said Fleckner.

A Carfax vehicle history report revealed the odometer had been rolled back by as much as 150,000 miles, meaning its true mileage was closer to 300,000 miles.

“Then you start reflecting: Did I just buy a piece of crap?” asked Fleckner.

Fleckner chose to keep the truck, but repairs cost him another $5,000.

At DMV headquarters in Sacramento, Commander Tom Wilson showed 2 Investigates how criminals are easily changing digital odometers with equipment meant for mechanics working on cars involved in accidents.

“In previous years, we would get just a few cases trickling in. Now it just seems like the floodgates are open,” said Wilson.

Two recent cases involved more than 500 vehicles, according to Wilson. He showed KTVU more than 50 instrument panels seized by investigators.

In one of the cases, investigators arrested three men for selling more than 200 cars with rolled back odometers.  Wilson says the men moved the cars between the Bay Area and Central Valley to try to cover their tracks.  The suspects also altered car titles to reflect the new lower mileage.

“By their own records, we found they profited almost $296,000 before the radar was even focused on them,” said Wilson.

Virtually all of their business was done on Craigslist.  Investigators say they search the website on a regular basis, looking for red flags.  Experts say cars most likely to have their odometers rolled back are 14 to 15 years old.

Fleckner has now taken on a second job to help pay for the unexpected expenses that came with his truck.

The DMV has published a list of tips and advice to help consumers avoid becoming victims of odometer fraud. Carfax also offers a free way to check a car’s odometer history on its website.

FTC red flag rules for car dealers offering credit

Red Flags Rule

From Wikipedia, the free encyclopedia
The Red Flags Rule was created by the Federal Trade Commission (FTC), along with other government agencies such as the National Credit Union Administration (NCUA), to help prevent identity theft. The rule was passed in January 2008, and was to be in place by November 1, 2008. But due to push-backs by opposition, the FTC delayed enforcement until December 31, 2010.[1]

In December 2010, the Red Flags Rule was clarified by the Red Flag Program Clarification Act of 2010 [2] to exclude most doctors, lawyers, and other professionals who do not receive full payment at the time when their service is furnished.

 

 

History

The Red Flags Rule was based on section 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003.[3] FACTA was put in place to help Identity Theft Prevention and Credit History Restoration, Improvements in Use of and Consumer Access to Credit Information, Enhancing the Accuracy of Consumer Report Information, Limiting the Use and Sharing of Medical Information in the Financial System, Financial Literacy and Education Improvement, Protecting Employee Misconduct Investigations, and Relation to State Laws.[4]

Coverage

There are two different groups that this rule applies to: Financial Institutions and Creditors.[5] Financial institution is defined as a state or national bank, a state or federal savings and loan association, a mutual savings bank, a state or federal credit union, or any other entity that holds a “transaction account” belonging to a consumer.[6] FACTA’s definition of “creditor” applies to any entity that regularly extends or renews credit – or arranges for others to do so – and includes all entities that regularly permit deferred payments for goods or services [7]

The definition of a creditor was clarified by the Red Flag Program Clarification Act of 2010.[2] Under the Clarification Act, a creditor regularly and in the course of business:

  • Obtains or uses consumer credit reports;
  • Provides information to consumer reporting agencies; or
  • Advances funds which must be repaid in the future (or against collateral).

This definition was further clarified United States Court of Appeals For the District of Columbia Circuit in its March 4, 2010 ruling on The American Bar Association vs. Federal Trade Commission.[8] The court affirmed Senator Dodd’s statement regarding the bill that “lawyers, doctors, … and other service providers [are] no longer classified as ‘creditors’ for the purpose of the red flags rule just because they do not receive payment in full from their clients at the time they provide their services.”

There are many different companies that this rule applies to: this list includes, but is not limited to finance companies, automobile dealers, mortgage brokers, utility companies, and telecommunications companies; or any other company that advances funds or routinely interacts with consumer credit agencies when performing a service and receiving payment once the work is complete.

Elements

The Red Flags Rule sets out how certain businesses and organizations must develop, implement, and administer their Identity Theft Prevention Programs. The program must include four basic elements, which together create a framework to address the threat of identity theft.[9][10]

The program has four elements:

1) Identify Relevant Red Flags

  • Identify likely business-specific identity theft red flags

2) Detect Red Flags

  • Define procedures to detect red flags in day-to-day operations

3) Prevent and Mitigate Identity Theft

  • Act to prevent and mitigate harm when red flags are identified

4) Update Program

  • Maintain the red flag program, including educating operational staff

The Red Flags Rules provide all financial institutions and creditors the opportunity to design and implement a program that is appropriate to their size and complexity, as well as the nature of their operations.[6]

The red flags fall into five categories:

  • alerts, notifications, or warnings from a consumer reporting agency[6]
  • suspicious documents[6]
  • suspicious identifying information, such as a suspicious address[6]
  • unusual use of – or suspicious activity relating to – a covered account[6]
  • notices from customers, victims of identity theft, law enforcement authorities, or other businesses about possible identity theft in connection with covered accounts[6]

Compliance

The FTC has a created a template for businesses that can be populated to meet an individual company’s needs. The template can be found on the FTC website. This template however is appropriate only for small, very low risk businesses.

Red Flag Rule and identity theft

As the Red Flag rule widely defines creditors, many businesses (such as utilities)[11] are required to collect personal information (such as SSN and Driver’s License Numbers) that they do not need and have no use for. This policy is precisely contrary to the FTC’s advice to consumers that they should disclose their social security number to others only when absolutely necessary.[12] This aspect of the Red Flag rule has the unintended consequences of increasing the number of business that hold consumers’ Social Security numbers thereby putting consumers at greater risk for identity theft through data theft.

References

  1. Jump up^ http://ftc.gov/opa/2010/05/redflags.shtm
  2. Jump up to:a b http://www.govtrack.us/congress/bills/111/s3987
  3. Jump up^ http://ftc.gov/opa/2007/10/redflag.shtm
  4. Jump up^ FAIR AND ACCURATE CREDIT TRANSACTIONS ACT OF 2003, Public, Law 108-159, 108th Congress, retrieved 2009-02-02
  5. Jump up^ http://www.ftc.gov/opa/2008/07/redflagsfyi.shtm
  6. Jump up to:a b c d e f g http://www.ftc.gov/bcp/edu/pubs/business/alerts/alt050.shtm
  7. Jump up^ http://www.ftc.gov/opa/2009/04/redflagsrule.shtm
  8. Jump up^ http://www.ama-assn.org/ama1/pub/upload/mm/399/aba-versus-ftc.pdf
  9. Jump up^ http://www.ftc.gov/bcp/edu/pubs/business/idtheft/bus23.pdf
  10. Jump up^ “Identity theft” means a fraud committed or attempted using the identifying information of another person without authority. See 16 C.F.R. § 603.2(a). “Identifying information” means “any name or number that may be used, alone or in conjunction with any other information, to identify a specific person, including any – (1) Name, Social Security number, date of birth, official State or government issued driver’s license or identification number, alien registration number, government passport number, employer or taxpayer identification number; (2) Unique biometric data, such as fingerprint, voice print, retina or iris image, or other unique physical representation; (3) Unique electronic identification number, address, or routing code; or (4) Telecommunication identifying information or access device (as defined in 18 U.S.C. 1029(e)).” See 16 C.F.R. § 603.2(b).
  11. Jump up^ “Start or Install Service”.
  12. Jump up^ ftc.gov. “Deter Minimize Your Risk”.

stockton #realcardealerschool

imagine a car dealer school

taught by real car dealers

we are the only ones with a

retail / autobroker car dealer license

who actually teach

dmv certified car dealer school

we are not attorneys

we are not selling forms

we are not bond agents

we do not sell insurance

we have no software for you

learn how to get licensed from the

#realcardealerschool

classes in:

SACRAMENTO

FAIRFIELD

NOVATO

FREMONT

MODESTO

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remember elon if you cannot take the heat get out of the kitchen ( tesla )

Tesla’s Elon Musk Bashes Media For Bad Publicity As Model S Fires Probed

Shares in Tesla were making their way higher on Tuesday after founder and CEO Elon Musk took to twitter to defend the Model S from “incredibly unjust” media coverage after three vehicle fires over the past several weeks.  Musk also said he invited regulators to conduct a review of the Model S, comments which were disputed by the NHTSA which actually began an investigation into the incidents on November 15.

Tesla Grand Opening in Menlo Park - Tesla Chai...Tesla’s Elon Musk is fuming – Photo credit: Wikipedia

“Why does a Tesla fire w no injury get more media headlines than 100,000 gas car fires that kill 100s of people per year?” tweetedMusk, adding that the Model S has the best safety record of any car on the road.  Both on twitter and through Tesla’s blog, Musk said his VP of regulatory affairs, Jim Chen, invited senior staff at the National Highway Traffic Safety Administration (NHTSA) to conduct “a full investigation as soon as possible into the fire incidents.”  Tesla is also extending its warranty on the Model S to all fires, including those caused by driver accidents, the billionaire said.

The NHTSA rejected Musk’s comments, though, with administrator David Strickland telling Congress they had begun an investigation and that Tesla “did not ask for the investigation,” according to the Detroit News.  “On more than one occasion, (Musk) has directly challenged me in one-on-one meetings on a number of issues regarding electric vehicles. He is very passionate. He has very strong views, and on occasion, I have had to explain to him, I am really not trying to mess up his business model. I am trying to do this to actually keep people safer,” Strickland said.

The regulator said it was beginning its preliminary investigation after fires in Washington and Tennessee which occurred as a consequence of “an undercarriage strike with metallic roadway debris.” NHTSA officials added “the resulting impact damage to the propulsion battery tray (baseplate) initiated thermal runaway. In each incident, the vehicle’s battery monitoring system provided escalating visible and audible warnings, allowing the driver to execute a controlled stop and exit the vehicle before the battery emitted smoke and fire.”  A third fire in Mexico wasn’t being investigated as the NHTSA has no jurisdiction overseas.

In his blog post, Musk was combative, noting the Model S has experienced on average one fire every 6,333 vehicles, compared to one every 1,350 for traditional gasoline vehicles.  “The far more deadly nature of a gasoline car fire deserves to be re-emphasized. Since the Model S went into production mid last year, there have been over 400 deaths and 1,200 serious injuries in the United States alone due to gasoline car fires, compared to zero deaths and zero injuries due to Tesla fires anywhere in the world,” wrote Musk, who added gasoline tanks have 10 times the combustion energy than his battery packs.  Provocatively, Musk noted arsonists tend to prefer gasoline: “trying to set the side of a building on fire with a battery pack is far less effective.”

Last week, Musk explained that his company’s high-flying stock price is more a distraction than anything else.  While the company will ultimately be worth many times what it is now, he said, it may not deserve the high valuation markets are giving it.  The stock remains up more than 240% this year, completely leaving in the dust major automakers like Ford Motor F +0.06%General Motors GM +0.79%, and Toyota.  That hasn’t been the case more recently, as Tesla has fallen more than 33% over the last month alone.

motorsport market weighs in on the indiana car dealer license situation

Art is our competition

http://www.motorsportsmarket.com/pages_new/indianadealers.asp

we agree the indiana car dealer license scheme is problematic in california

+++++

Indiana dealer licenses: Good option or not?

Below are some of the issues to consider in getting an out-of-state (Indiana) dealer license vs. a California dealer license.

Wholesale Dealers Cannot Sell to the PublicThe Indiana dealer websites offer an Indiana wholesale dealer license. A wholesale license does not allow sales to the public. You will not be able to sell to the public through Craigslist, E-Bay, AutoTrader.com, etc., or even your own website. You cannot sell to friends, or relatives, either with the Indiana wholesale dealer license. You can only sell to other licensed dealers, or possibly export. To sell to the public, you need the California retail dealer license, available only through the California DMV.

Wholesale Dealer “Partnering” with a Retail DealerSome Indiana sites also offer to introduce you to a retail dealer that you can sell your cars to. This raises several other issues.

 

  • First, most retail dealers will have little or no interest in purchasing vehicles from you. They could have purchased the vehicle directly from the same dealer auction as you – without your commission.
  • Second, the sites promote that you can sell your vehicles to their retail dealers, and that these dealers will then sell to your buyers. What is not addressed is the practical issue of how you will obtain those buyers. As a wholesale dealer you cannot sell to the public, so therefore you are not permitted to advertise your vehicles to the public. To do so would be fraud, advertising vehicles to people you cannot sell to. You also cannot consign your cars to another dealer to have them sell your vehicles for you. That violates DMV regulations. So selling to another dealer to try and make retail profits with a wholesale license is not a viable business model.
  • Third, the retail dealers will not help you for free. You will need to pay them. This could be part of an ongoing “service fee” you will be required to pay to the Indiana business, or a commission for each vehicle, if any, the retail dealer might sell.

 

Ongoing ChargesThe Indiana dealer operations generally charge several hundred dollars per month to use their service. A California dealer license, on the other hand, requires no ongoing monthly fees. However, California dealers must have at least an office location, which is an ongoing expense. Then again, Indiana requires an office location too. The difference is that you pay the Indiana dealer business for the privilege of using their business location to get their license instead of rent for your own California office and dealer license. The savings, if any, would be the difference between the rent paid in California vs. the fees charged by the Indiana dealer business. Any savings, however, must still balanced with the other issues with having an out-of-state license vs. a California dealer license.

Office RentTo get a California wholesale dealer license, DMV requires only an office – no display area, nor any sign. Often times this means you can have a home office without any additional rent. You also avoid all the monthly charges for any out-of-state dealership service. Even if you do get an office, it only needs to be big enough for a desk or table, and a filing cabinet. You can even sublease space where other business are located to keep your office expenses very low. Then you have your own business location and presence in California, the state where you live, and the state in which you do business.

Changing from Wholesale to RetailIf you get an Indiana wholesale dealer license, that’s all you can be, a wholesale dealer selling to other dealers, or possibly exporting. However, if you get the California wholesale dealer license, you can always later covert to retail sales, or add a retail branch location to your wholesale license. In other words, you can start with a wholesale license (with very low overhead, maybe even a home office), and later get a new location with an office, display area big enough for 2 vehicles, and a two foot square sign, to get your retail license. Getting your California dealer license allows you to change to retail, or wholesale, at any time, and have as many locations as you want in California. The Indiana license does not.

Travel to IndianaTo get the Indiana dealer license, you will have to travel to Indiana. You will have to meet with the Indiana Secretary of State Compliance Officer to request approval for an Indiana dealer license. This is considerably more expensive, and time consuming, than attending any California dealer Pre-Licensing class to get your California dealer license. In addition, when reviewing their dealer license contracts, look to see which state’s laws apply to your dealership, and where any court,arbitraion, or other legal proceedings will have to take place. Chances are excellent you will be bound by Indiana law, and required to appear in Indiana to either collect money owed to you, or to defend yourself. No one wants problems, but if something does come up between you and another party, it is considerably easier and substantially less expensive to collect and defend in your own backyard.

Dealer Bonds and InsuranceAll dealers, Indiana or California, require a dealer bond and dealer insurance. The Indiana dealer businesses offer to sell you their bonds and their insurance, which is a nice service. On the other hand, we provide you the names and contact information for the bond and insurance companies that have recently provided California dealers the lowest rates. To make this list, these companies must be refered to us by dealers. We receive no kickback, or fee, from any company on this list. These companies make the list by providing the best rates and services, period.

“Sharing” a California Dealer’s LicenseSome sites are offering, for hundreds of dollars per month, to add you onto an existing dealer license in your state. This is not easy as few dealers will take the risk to do this. There are considerable risks for you too. These situations can be like arranged marriages where the parties don’t know each other but are put together and their fortunes and losses depend on the actions of the other. Potential issues include the following:

  • Cost. The money you pay every month to use the license is money you could have been investing in your own business and your own inventory, not theirs.
  • As a member of another business, you are subject to rights and obligations of all the others involved in that business, many, if not most of whom, you may never know.
  • Their dealer business could fail, through no fault of your own. Then you have no dealer rights. You cannot buy more vehicles, nor sell the vehicles you already own, potentially sticking you with inventory you cannot move.
  • Your business assets, including your inventory and money, are subject to being taken in a lawsuit because of actions by others using the same dealer license. The bottom line is that you will be responsible for protecting your assets, including attorney’s fees.
  • The more people that sign up for this arrangement, the more money the organizers make, and the less control you have. Your assets are also at greater risk with each new member that joins.
  • If you feel sharing a dealer license is a good deal for you, be certain to take the time to read the fine print on any contracts you are required to sign, or have an attorney review them. Also, ask all your questions, even if they seem silly. Make sure the answers provided match the written contracts you are asked to sign The contract are binding. What you are told to encourage you to sign them is not.