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Buyer
beware
DMV issues warning on used-car dealers
(Published
July 12, 2004)
The city's director of motor vehicle licensing services is urging buyers to use caution when purchasing a used vehicle in the District to ensure that they obtain legal ownership of the vehicle.
"This is very, very distressing and sad to see -- some people are finding that they hold a title we can't recognize and the dealer already has their money," said Anne Witt, director of the D.C. Department of Motor Vehicles.
Witt said her department is encountering a growing number of instances where citizens are purchasing vehicles from used-car dealers whose legal privilege to provide third-party transfer of vehicle titles has been suspended or revoked. Buyers cannot prove ownership or register the vehicles when suspended or revoked dealers illegally reassign a title — leaving their buyers without recourse, Witt said.
As part of a crackdown on improper issuance of temporary tags, the DMV has been taking enforcement action against irregularities on the part of certain used car dealers. Once dealers obtain business licenses from the Department of Consumer and Regulatory Affairs, they register with the DMV for the special third-party privilege of reassigning vehicles between sellers and buyers. Without the privilege, a dealer must re-title a vehicle in the dealer's name before legally re-selling it to a buyer.
Through July 7, the temporary tag crackdown has led to 73 used-car dealers being cited for various DMV violations. Sixty-six hearings have been conducted, resulting in 16 suspensions and 39 revocations of DMV dealer privileges.
Witt said that dealers whose privileges are revoked must wait at least six months to request reconsideration. Suspensions are in effect for 30 days to six months, depending upon the severity of the infraction. Dealers who lose DMV privileges also lose their ability to use dealer tags, which allow customers to test drive vehicles prior to purchase.
Dealers with suspended DMV privileges are still entitled to sell cars, but first have to transfer the vehicle title into their own name, and reassign it to the buyer on the back of the original title.
Witt said some dealerships are ignoring their status and are illegally reassigning titles by using a DMV form which is separate from the title — leaving their buyer without legal title to the vehicle. She advises used-car shoppers to check with the DMV by calling (202) 727-5000 to make sure that a used-car dealer has not had their DMV privileges suspended or revoked.
The following dealers have had DMV privileges revoked, as of July 7:
The following dealers have had DMV privileges suspended, as of July 7. The date their suspension ends is at the end of each listing:
Copyright 2004, The Common Denominator