Role of an Approved Auto Dealer - Digital Government and Service NL

Contents:

Approved dealers may be authorized to issue temporary vehicle registrations, collect related fees; and distribute licence plates or snow mobile markers on behalf of Motor Registration.

At the time of lease/sale the Dealer issues a lease/sales agreement to the customer.
Approved Dealers can issue temporary registrations, licence plates or markers to vehicle owners. The inventory is maintained on the dealer’s premises.

Plates or markers: Issued to the owner of the vehicle who was issued a temporary registration (above) and pays the prescribed fee set by DGSNL.

Temporary Registrations: Issued to the owner of a vehicle who completes an application for registration and pays the prescribed fee set by DGSNL. It will expire in 120 days.

Dealers must submit the required information to Motor Registration Division within 10 days of sale/transfer via the DealerWEB.
The Dealer is required to keep records (described below) for at least one year following the sale or lease of any vehicle.

Selling a Vehicle

Dealers are required to provide the following to buyers before selling a vehicle:

A Sales or lease agreement (outlined below);
A Temporary registration; and
A licence plate as required for the type of vehicle
Dealers are required to provide the following to buyers before selling a second hand vehicle: A sale or lease agreement (outlined below);
A temporary registration; and
A licence plate as required for the type of vehicle
A vehicle inspection certificate* issued by an official inspection station; and
A vehicle history report* approved by the Registrar.

*This does not apply for selling: a new vehicle, a vehicle dealer to dealer, lease buyout, as is sale, or out of province.

Sales Agreements shall include:

Name and address of buyer(s)
Date of sale
Color, make, model, year of vehicle
Vehicle identification marker
Limited to one vehicle per sales agreement
Particulars of extra equipment or accessories to be provided
The odometer reading
Price
Amount of down payment and deposit (if any)
Trade in(s) or exchange details including outstanding liens
Additional warranties (if any)
In the dealer financed the purchase, a statement to that effect
Tax collected and HST information
Name of the salesperson

Lease Agreements shall include:

Amount due at lease signing or delivery
Payment amount and schedule
Total amount of payments over the term
Calculation of how the payment is determined and the portion of the total that constitutes finance charges
Option to purchase at the end (if any)
Option to buyout early (if any)
Amount of down payment and deposit (if any)
Trade in(s) or exchange details including outstanding liens
Additional warranties (if any)
Tax collected and HST information
Name of the salesperson
A statement of the rights and obligations of the lessee:
- in the event of early termination and the amount to be paid;
- obligation for excessive wear and tear;
- obligation for excessive mileage; and
- Responsibilities of maintenance if the vehicle
- Insurance must be maintained including fire & theft

Selling a Vehicle “AS IS”

A dealer must notify the Registrar of Motor Vehicles within 10 days of any vehicles sold ‘As Is’. The purchaser would be responsible for completing the vehicle transfer themselves. More information can be found here.

A Notice of Sale relieves the dealer of any further legal responsibilities for the vehicle, such as tickets, impound fees, etc).

Selling a Vehicle Out of Province

A dealer must notify the Registrar of Motor Vehicles within 10 days of any vehicles sold out of province.

A Notice of Sale relieves the dealer of any further legal responsibilities for the vehicle, such as tickets, impound fees, etc).

Vehicle Trades

Only the registered owner(s) of a vehicle, or a legal agent acting on their behalf, are authorized to sell or trade their vehicle. The dealer must ensure the vehicle being acquired from the registered owner(s).

When a Dealership takes a vehicle on trade, it must be transferred to the Dealership and the applicable transfer fee must be paid, as per the fees policy. The transfer fee must also be paid by the purchasing dealer during dealer-to-dealer transfers of vehicles or trailers.

When an out of province vehicle is accepted on a trade, the vehicle must be registered to the Dealership.

Document Retention

Dealers who are buying, selling or exchanging new or used vehicles or trailers must ensure that:

the specific documents and records outlined below are kept for each of the sales, leases or trade-ins conducted, and
the documents and records are retained in a secure manner, and
the documents and records can only be accessed by authorized employees, and
the documents and records are destroyed in a secure manner at the end of the retention period.

Documents may be kept in paper or electronic formats.

The following records must be kept by the Dealer for at least one year following the sale or lease of a NEW vehicle:

New Vehicle Information Statement (NVIS)
A copy of the sales or lease agreement
Proof of insurance as provided by the purchaser’s/lessee’s insurance company
For Imported vehicles: documents* required by Transport Canada and the Canadian Border Services

*Dealers must continue to retain these documents for the period of time required by Transport Canada and Canadian Border Services, if they require longer than one year.

The following records must be kept by the Dealer for at least one year following the sale or lease of a USED vehicle:

Information related to the purchase or acquisition of the vehicle, including:
- name and address of the person(s) from whom the vehicle was purchased or acquired;
- the date the vehicle was purchased or acquired;
accurate vehicle particulars, including VIN, year, model, color, details of extra equipment and odometer reading at the time of purchase or acquisition;
signature(s) of registered owner;
For trade-ins: the amount the customer received for the trade-in
A copy of the vehicle history record from a person approved by the Registrar;
A copy of the vehicle inspection certificate;
A copy of the sales or lease agreement including the amount of tax collected on the sale of lease);
Proof of insurance provided by the purchaser’s/lessee’s insurance company;
For Imported vehicles: documents* required by Transport Canada or Canadian Border Services

*Dealers must continue to retain these documents for the period of time required by Transport Canada and Canadian Border Services, if they require longer than one year.

Lease Buyout, Lease Assumption and Sale of a Demo.

A dealer may be exempt from providing an inspection for the purpose of a lease buyout, lease assumption or the sale of a demo. The dealer will be required to retain the supporting documentation as proof.

Plate Returns (Refunds)

Vehicles must be registered to the dealer in order for the dealer to perform a plate return transaction using the Dealer Web. All plate returns will generate a refund automatically, if applicable. The return choices include:

Scrapped
Inspection Required
Refund (including sold out of province)

Dealers must return the plate or affidavit (for missing plates) to their Dealer Representative (Mount Pearl, Grand Falls or Corner Brook) within 14 days of the transaction. Failure to return the plate or affidavit will result in no refund being issued and may result in a suspension of the dealer license.

Plate Replacement

Vehicles must be registered to the dealer in order for the dealer to perform a plate replacement transaction using the Dealer Web. Dealers must return the plate or affidavit (for missing plates) to their Dealer Representative (Mount Pearl, Grand Falls or Corner Brook) within 14 days of the transaction. Failure to return the plate may result in a suspension of the dealer license.