Virginia Dealer Manual - Virginia Department of Motor Vehicles

Virginia Dealer’s Manual
October 1, 2009
if exempt from Retail Sales & Use Tax.)
4.4.6 Replacement Vehicle Obtained as a Result of a Warranty
TRANSACTION
A. OBTAINED UNDER THE VIRGINIA "LEMON LAW" NOTE: A
letter is required from the manufacturer or distributor stating that the
vehicle is a replacement received under the Virginia Motor Vehicle
Warranty Enforcement Act (Virginia lemon law).
1. Replacement is of same value as the "lemon". Tax paid on the "lemon"
is applied toward the tax for the replacement vehicle.
2. Replacement is of higher value than the lemon. NOTE: Tax is owed on
the difference in value.
3. Replacement vehicle is of lower value than the lemon. DMV refunds the
difference in tax paid on the lemon and tax owed on the replacement. (Send
refund request to Title and Registration Work center).
B. OBTAINED UNDER OTHER WARRANTY (Not under the Virginia
"lemon law")
PAY
SUT
NO
REFERENCES
59.1-207.9, et.
seq
YES 59.1-207.9
NO
YES
59.1-207.9, et.
seq
4.4.7 Repossession & Insurance
TRANSACTION
Repossessed by lienholder under a recorded lien and owner refinances
vehicle by signing a new contract
Repossessed by lienholder and titled in lienholders name
NOTE: The SUT will be collected from the lienholder, if he is
registering the vehicle, this includes transfer of tags.
Repossessed and titled by lienholder under a recorded lien but title
transferred back to owner under the terms and conditions of the original
contract NOTE: Written statement to this effect required from
lienholder.
Sold to Insurance Company or local government group self-insurance
pool after settlement for a stolen vehicle
Sold to insurance company or local government group self-insurance
pool to dispose of after settlement on total loss if the vehicle is OVER 7
YEARS OLD or valued UNDER $7,500 NOTE: Must provide copy of
the "Proof of Loss" or other proof that the owner was paid for a total
loss.
Sold to insurance company or local government group self-insurance
pool to dispose of after settlement on total loss if the vehicle is 6
YEARS OLD OR LESS or valued at $7,500 OR MORE NOTE: Must
provide copy of the "Proof of Loss" or other proof that the owner was
paid for a total loss.
PAY
SUT
REFERENCES
YES 58.1-2403 (5)
NO 58.1-2403 (5)
NO
NO 58.1-2403 (16)
NO 58.1-2403 (16)
NO 58.1-2403 (16)
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