California To Require Dealers To Check Title Information

Published By:  Successful Dealer, Denise Rondini

Beginning July 1, 2012 under AB1215, every California-licensed motor vehicle dealer is required to check the National Motor Vehicle Title Information System (NMVTIS) prior to offering vehicles, including heavy-duty trucks, for sale. Junk yards, salvage yards, auto recyclers, insurance carriers and state motor vehicle departments are required to report vital information about vehicles to NMVTIS.

There has been some confusion about certain components of the new law and how it impacts commercial motor vehicle dealers since it also applies to automobile dealers. The sections of AB1215 that requires vehicles sold or leased by a new motor vehicle dealer to be registered electronically does not apply to commercial motor vehicle dealers, while the requirement for NMVTIS reports does.

NMVTIS is a national, federally-mandated vehicle history database maintained by the United States Department of Justice to ensure that states, law enforcement agencies and consumers have access to vehicle titling, branding and other information that enables them to verify the accuracy and legality of motor vehicle titles before transfer or registration of the vehicle occurs.

To comply with this new law prior to offering a vehicle for sale, dealers must obtain a vehicle history report. They can access vehicle history reports through an authorized NMVTIS Consumer Access Provider, such as RigDig Truck History Reports for heavy-duty truck dealers. A list of authorized providers can be found at www.vehiclehistory.gov.

If the report returns NMVTIS-related junk, salvage, total loss or title brand information, the dealer will be required to affix a 4 in. x 5 in. red warning sticker in the window of the vehicle. Additionally, upon request, dealers must provide a copy of the report to the purchaser. If the report is “clean” the dealer does not have to post it, unless the customer requests a copy.

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