Virginia Dealer Manual - Virginia Department of Motor Vehicles

Virginia Dealer’s Manual
October 1, 2009
c. DMV will determine whether your evidence warrants further investigation, and
will take appropriate action.
7.6 DLR 725-REQUIREMENTS CONCERNING MANUFACTURER’S
STATEMENT OR CERTIFICATE OF ORIGIN
7.6.1 If a Franchised Dealer Sells a New Vehicle to Another Dealer
When a franchised dealer sells a new vehicle to another dealer who handles a different
line make of vehicle, the purchasing dealer must obtain a Certificate of Title in the
dealership’s name before the vehicle can be resold. The vehicle must then be sold as
used.
7.6.2 Exception
If both dealers hold a franchise from the same manufacturer for the same line make of
vehicle, the assigned Manufacturer’s Statement of Origin will take the place of a title in
the dealership’s name.
7.6.3 Two-Stage Manufactured Vehicles
DMV requires two manufacturer’s Statements or Certificates of Origin or the chassis
MSO/MCO and the National Highway Traffic Safety Administration (NHTSA) required
door jamb sticker for the body, as proof of ownership on all two-stage manufactured
vehicles. If your dealership sells these vehicles, you must be franchised by the secondstage
manufacturer and you must obtain each manufacturers’ Statements or Certificates
of Origin when you accept delivery on the vehicles. The purchaser must submit both
Statements or Certificates of Origin when applying to DMV for title to his vehicle.
7.7 DLR 730-REQUIREMENTS CONCERNING NEW MOTOR VEHICLE
DAMAGE
7.7.1 When a Franchised Dealer Receives a New Motor Vehicle from the
Manufacturer/Distributor with Damage, or with Damage to a New Motor Vehicle
that Occurs Following Delivery of the Vehicle to the Dealer.
On any new motor vehicle, any uncorrected damage or any corrected damage exceeding
three percent of the suggested retail price as defined in 15 U.S.C. Sections 1231-1233, as
measured by retail repair costs, must be disclosed to the dealer in writing prior to
delivery.
7.7.2 Exceptions
Factory mechanical repair and damage to glass, tires and bumpers is excluded from the
three percent rule when properly replaced by identical manufacturers or distributors or
distributor’s original equipment or parts.
7.7.3 Franchised Dealer
Whenever a new motor vehicle is damaged in transit, when the carrier or means of
transportation is determined by the manufacturer or distributor, or whenever a motor
vehicle is otherwise damaged prior to delivery to the new motor vehicle dealer, shall:
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