NOTICES
Duty of Issuing Agents to Verify Purchase Price of Vehicle at Time of Sale/Registration
[27 Pa.B. 2865] The Department of Transportation (Department), Bureau of Motor Vehicles, under the authority contained in the act of April 17, 1997 (act) (75 Pa.C.S. § 1318(d)), hereby prescribes the manner by which issuing agents shall verify that the purchase price of a motor vehicle, as stated upon an application for a certificate of title and/or registration, approximates the fair market value of the motor vehicle.
Issuing agents shall verify the fair market value of a motor vehicle by using data supplied by the National Automobile Dealers Association (N.A.D.A.). For motor vehicles of the 7 most recent model years, issuing agents shall verify the fair market value by using the most current, ''Eastern Edition'' of the N.A.D.A. Official Used Car Guide. For motor vehicles with a model year of 7 to 18 years old, issuing agents shall verify the fair market value by using the most current, ''National Edition'' of the N.A.D.A. Appraisal Guide, Official Older Used Car Guide. Issuing agents also may use the most current version of the N.A.D.A. Guide 2000, which is a computer diskette version providing market values for motor vehicles for the preceding 18 years.
The publications and the computer diskette are produced by the National Automobile Dealers Association Used Car Guide Company. Copies and subscriptions to the publications and the diskette may be obtained by writing to the National Automobile Dealers Association Used Car Guide Company, 8400 Westpark Drive, McLean, Virginia 22102 or by telephoning the National Automobile Dealer's Association Used Car Guide Company at (800) 966-6232. The N.A.D.A. data also may be obtained telephonically from authorized providers, such as trade associations, other issuing agents or Internet providers.
The fair market value of a motor vehicle shall be obtained from the relevant publication's stated retail value for that motor vehicle and by making the N.A.D.A.-suggested adjustments for high or low mileage for the motor vehicle. The issuing agent may obtain the reported mileage from the odometer statement. The issuing agent may not add to or deduct from the value of the vehicle for optional equipment.
If the stated purchase price upon an application for a certificate of title and/or registration of a motor vehicle with a model year of the preceding 18 years is less than 90% of the stated N.A.D.A. retail value for that motor vehicle, the issuing agent shall accept a form prescribed by the Department, upon which the applicant and the seller shall explain and attest before a notary public, or other officer empowered to administer oaths, the reason that the purchase price for the motor vehicle is less than the N.A.D.A. retail value for the motor vehicle. The issuing agent shall determine whether the purchase price is less than 90% of the N.A.D.A. retail value by subtracting 10% from the N.A.D.A. retail value and comparing the difference with the stated purchase price. If the stated purchase price is less than the difference, the applicant must submit the form prescribed by the Department. For a motor vehicle purchased from a public auto auction, the issuing agent may accept a copy of the block ticket signed by both the auctioneer or its clerk, and the applicant in lieu of the form prescribed by the Department, provided that the block ticket contains both the N.A.D.A. retail value and the actual purchase price.
If a particular motor vehicle is not listed by the N.A.D.A., the applicant shall submit to the issuing agent the form prescribed by the Department, upon which the applicant and the seller shall explain and attest before a notary public, or other officer empowered to administer oaths, how the applicant and the seller determined the purchase price of the motor vehicle and that the purchase price approximates the fair market value of the motor vehicle. This provision regarding a motor vehicle which is not listed by the N.A.D.A. shall not apply to a new motor vehicle, that is, a vehicle which is being sold to its first retail customer.
Transactions which involve a motor vehicle with a model year over 18 years old do not require N.A.D.A. verification. Instead, if the stated purchase price for the said vehicle is below $500 the issuing agent shall accept the form prescribed by the Department, upon which the applicant and the seller shall explain and attest before a notary public, or other officer empowered to administer oaths, the reason that the purchase price for the motor vehicle is less than $500.
In accordance with section 1318(e) of the act, issuing agents that violate its provisions commit a summary offense and shall, upon conviction, be sentenced to pay a fine of not less than $100 nor more than $500 and for each subsequent or additional offense, a fine of not less than $200 nor more than $500, or to imprisonment for not more than 90 days or both. In addition, issuing agents will also be subject to the sanctions contained in 67 Pa. Code Chapter 43 (relating to temporary registration cards and plates).
This notice shall take effect upon publication in the Pennsylvania Bulletin with an effective compliance date of June 16, 1997.
Questions, comments or suggestions may be directed to Gary M. Skovron, Manager, Regulated Client Services, 1101 S. Front Street, Riverfront Office Center--First Floor, Harrisburg, PA 17104-2516, (717) 787-3780.
BRADLEY L. MALLORY,
Secretary
[Pa.B. Doc. No. 97-950. Filed for public inspection June 13, 1997, 9:00 a.m.]
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