NOTICES
Duty of Issuing Agents to Verify Purchase Price of Vehicles at Time of Sale/Registration
[27 Pa.B. 3286] The Department of Transportation, Bureau of Motor Vehicles, under the authority contained in the act of April 17, 1997, P. L. _____, No. 3 (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 the most current data supplied by any nationally recognized guide approved by the Department. The following publications are approved by the Department as recognized guides which issuing agents may use to determine the fair market retail value of a motor vehicle.
The N.A.D.A. Official Used Car Guide, ''Eastern Edition,'' which includes the values of motor vehicles for the seven most recent model years, or the N.A.D.A. Older Used Car Guide, which includes the values of motor vehicles with a model year of 8 to 18 years old. Issuing agents may also use the most current Guide 2000, which is a computer diskette version of the aforementioned N.A.D.A. publications for motor vehicles with a model year of the preceding 18 years. These publications and the diskette are published by the National Automobile Dealers Association Used Car Guide Company, and copies and subscriptions to the publications and the diskette may be obtained by writing to the N.A.D.A. Used Car Guide Company, 8400 Westpark Drive, McLean, Virginia 22102, or by telephoning the N.A.D.A. Used Car Guide Company at 1-(800) 966-6232.
Automobile Red Book, which includes the values of motor vehicles for the seven most recent model years, or the Older Car Red Book, which includes the values of motor vehicles with a model year of 8 to 17 years old. These publications are published by National Market Reports, and copies and subscriptions to the publications may be obtained by writing to the National Market Reports, 29 North Wacker Drive, Chicago, Illinois 60606, or by telephoning the National Market Reports at 1-(800) 621-9907.
The Official Used Car Guide, which includes the values of motor vehicles for the six most recent model years, or The Official Old Car Market Guide, which includes the values of motor vehicles with a model year of 7 to 14 years old. These publications are published by the National Auto Research Division, Hearst Business Media Corporation, and copies and subscriptions to the publications may be obtained by writing to the National Auto Research Division, P. O. Box 785, Gainesville, Georgia 30503-0758, or by telephoning the National Auto Research Division at 1-(800) 554-1026.
American Used Cars, which includes the values of domestic motor vehicles for the six most recent model years, or the Foreign Cars Edition, which includes the values of foreign motor vehicles for the six most recent model years, or the Light Duty Truck Edition, which includes the values of motor vehicles for the six most recent model years, or the Older Used Cars and Trucks, which includes the values of motor vehicles with a model year of 7 to 12 years old. These publications are published by Galves Auto Price List, Inc., and copies and subscriptions to the publications may be obtained by writing to Galves Auto Price List, Inc., 430 Industrial Avenue, Tetersboro, New Jersey 07608, or by telephoning Galves Auto Price List, Inc., at (201) 393-0051.
Kelley Blue Book Used Car Guide, which includes the values of motor vehicles for the six most recent model years, or the Official Guide for Older Cars, which includes the values of motor vehicles with a model year of 7 to 20 years old. These publications are published by Kelley Blue Book, and copies and subscriptions to the publications may be obtained by writing to Kelley Blue Book, 5 Old Field Road, Irvine, California 92618, or by telephoning Kelley Blue Book, Inc., at 1-(800) 258-3266 (ext. 22).
Requests for approval of other publications may be submitted, in writing, to the Department with an explanation which justifies inclusion on the approved list of Department recognized guides. Persons or entities requesting approval of other publications may write to: Gary M. Skovron, Manager, Regulated Client Services, 1101 S. Front Street, Riverfront Office Center--First Floor, Harrisburg, Pennsylvania 17104-2516, (717) 787-3780.
The fair market value of a motor vehicle shall be obtained from the relevant approved publication's stated retail value for that motor vehicle and by making the approved publication's 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 motor 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 15 years is less than 80% of the approved publication's stated 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 have explained and attested 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 approved publication's stated retail value for that motor vehicle. The issuing agent shall determine whether the purchase price is less than 80% of the retail value by subtracting 20% from the approved publication's stated 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, in lieu of the form prescribed by the Department, a copy of the block ticket signed by both the auctioneer or its clerk and the applicant, provided that the block ticket contains both the approved publication's stated fair market retail value of the motor vehicle and the actual purchase price. For a motor vehicle purchased from a licensed dealer, the issuing agent may accept, in lieu of the form prescribed by the Department, a copy of the bill of sale signed by both the dealer or its licensed salesman and the applicant, provided that the bill of sale contains both the approved publication's stated fair market retail value of the motor vehicle and the actual purchase price.
For motor vehicles which are not passenger cars or trucks of class 4 or less, or if a particular passenger car or truck of class 4 or less is not listed in an approved publication used by the issuing agent, the applicant shall submit to the issuing agent the form prescribed by the Department upon which the applicant and the seller shall have explained and attested 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. In lieu of using the form prescribed by the Department, the issuing agent may use a publication that is published by one of the publishers of a Department-approved, recognized guide and which lists motor vehicles that are not passenger cars or trucks of class 4 or less. The issuing agent may obtain the fair market retail value of the motor vehicle from the publication's stated retail value for the motor vehicle that is not a passenger car or truck of class 4 or less and by making the publication's 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 motor vehicle for optional equipment. If the stated purchase price upon an application for a certificate of title and/or registration of a motor vehicle that is not a passenger car or truck of class 4 or less is less than 80% of the fair market retail value provided for that motor vehicle in the publication used by the issuing agent for motor vehicles that are not passenger cars or trucks of class 4 or less, the issuing agent shall use the form prescribed by the Department upon which the applicant and the seller shall have explained and attested 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 publication's stated retail value for the motor vehicle.
Transactions which involve a motor vehicle with a model year over 15 years old do not require verification through an approved recognized guide. Instead, if the stated purchase price for the said vehicle is below five hundred ($500) dollars, the issuing agent shall accept the form prescribed by the Department upon which the applicant and the seller shall have explained and attested 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. However, for a motor vehicle purchased from a public auto auction, the issuing agent may accept, in lieu of the form prescribed by the Department, 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 fair market retail value of the motor vehicle and the actual purchase price. For a motor vehicle purchased from a licensed dealer, the issuing agent may accept, in lieu of the form prescribed by the Department, a copy of the bill of sale signed by both the dealer or its licensed salesman and the applicant, provided that the bill of sale contains both the approved publication's stated fair market retail value of the motor vehicle and the actual purchase price.
In accordance with Section 1318(e) of the act of April 17, 1997, P. L. _____, No. 3, issuing agents that violate these provisions commit a summary offense of section 1318(d) of the Vehicle Code (75 Pa.C.S. § 1318(d)), 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 immediately upon publication in the Pennsylvania Bulletin with an effective compliance date retroactive to June 16, 1997. This Notice supersedes the Notice published at 27 Pa.B. 2865 (June 14, 1997) (relating to Duties of Issuing Agents to Verify Purchase Price of Vehicle at Time of Sale/Registration).
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, Pennsylvania 17104-2516, (717) 787-3780.
BRADLEY L. MALLORY,
Secretary
[Pa.B. Doc. No. 97-1096. Filed for public inspection July 3, 1997, 9:00 a.m.]
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