168A.11 PURCHASE OF VEHICLE BY DEALER.
Subdivision 1. Requirements upon subsequent transfer; service fee.
(a) A dealer who
buys a vehicle and holds it for resale need not apply for a certificate of title. Upon transferring
the vehicle to another person, other than by the creation of a security interest, the dealer shall
promptly execute the assignment and warranty of title by a dealer, showing the names and
addresses of the transferee and of any secured party holding a security interest created or reserved
at the time of the resale, and the date of the security agreement in the spaces provided therefor on
the certificate of title or secure reassignment.
(b) If a dealer elects to apply for a certificate of title on a vehicle held for resale, the dealer
need not register the vehicle but shall pay one month's registration tax. If a dealer elects to apply
for a certificate of title on a vehicle held for resale, the department shall not place any legend on
the title that no motor vehicle sales tax was paid by the dealer, but may indicate on the title
whether the vehicle is a new or used vehicle.
(c) With respect to motor vehicles subject to the provisions of section
, the dealer
shall also, in the space provided therefor on the certificate of title or secure reassignment, state the
true cumulative mileage registered on the odometer or that the exact mileage is unknown if the
odometer reading is known by the transferor to be different from the true mileage.
(d) The transferee shall complete the application for title section on the certificate of title or
separate title application form prescribed by the department. The dealer shall mail or deliver the
certificate to the registrar or deputy registrar with the transferee's application for a new certificate
and appropriate taxes and fees, within ten business days.
(e) With respect to vehicles sold to buyers who will remove the vehicle from this state, the
dealer shall remove any license plates from the vehicle, issue a 31-day temporary permit pursuant
, and notify the registrar within 48 hours of the sale that the vehicle has been
removed from this state. The notification must be made in an electronic format prescribed by
the registrar. The dealer may contract with a deputy registrar for the notification of sale to an
out-of-state buyer. The deputy registrar may charge a fee not to exceed $7 per transaction to
provide this service.
Subd. 2. Notification on vehicle held for resale; service fee.
Within 48 hours of acquiring a
vehicle titled and registered in Minnesota, a dealer shall notify the registrar that the dealership is
holding the vehicle for resale. The notification must be made electronically as prescribed by the
registrar. The dealer may contract this service to a deputy registrar and the registrar may charge
a fee not to exceed $7 per transaction to provide this service.
Subd. 3. Records.
Every dealer shall maintain for three years at an established place
of business a record in the form the department prescribes of every vehicle bought, sold, or
exchanged, or received for sale or exchange, which shall be open to inspection by a representative
of the department or peace officer during reasonable business hours. With respect to motor
vehicles subject to the provisions of section
, the record shall include either the true
mileage as stated by the previous owner or the fact that the previous owner stated the actual
cumulative mileage was unknown; the record also shall include either the true mileage the dealer
stated upon transferring the vehicle or the fact the dealer stated the mileage was unknown.
Subd. 4. Centralized record keeping.
Three or more new motor vehicle dealers under
common management or control may designate to the department in writing a single location for
maintaining the records required by this section that are more than 12 months old. The records
must be open to inspection by a representative of the department or a peace officer during
reasonable business hours. The location must be at the established place of business of one of the
affiliated dealers or at a location within Minnesota not further than 25 miles from the established
place of business of one of the affiliated dealers.
History: 1971 c 162 s 11; 1977 c 105 s 4,5; 1986 c 444; 1989 c 148 s 8; 1994 c 536 s 17;
1997 c 250 s 5; 1998 c 285 s 4; 1998 c 405 s 4; 2002 c 371 art 1 s 19; 2002 c 388 s 3; 2004 c
224 s 2-4