2017 Legislation

by Shannon Slack - Posted 2 years ago

FTC Buyer's Guides

New, revised Buyers' Guides must be in use by January 27, 2018.  Legislation which mandated use of the new forms was implemented January 27, 2017 but the FTC granted a full year to exhaust existing supplies.  Dealers should be certain that as of January 27, 2018 all of their inventory displays the correct, revised version as adopted by the FTC.  There are now options for different versions of the Buyers' Guide so please verify you are using the version correct for your business model.  More info can be found at the FTC website.  CLICK HERE to view that info.

SB 174-Diesel Early Retirement
Although SB 174 has stalled in the 2017 legislative session it bears noting that California has targeted certain vehicles for early retirement.  This bill establishes future dates for early retirement of certain diesel powered heavy duty vehicles based on year model and Gross Vehicle Weight Rating(GVWR).

Essentially, SB 174 states that starting in the year 2020 the DMV will no longer transfer registration or renew registration for diesel vehicles year model 2004 or older with a GVWR between 14,001 and 26,000 pounds.  No retrofit is available to delay or prevent this action.  By the year 2023, no heavy duty diesel vehicles with GVWR greater than 14,000 pounds and older than 2011 will be transferred or allowed registration renewal.  As an example, a Ford F450 has a GVWR greater than 14, 000 GVWR.  You can CLICK HERE to view the bill.

The impact upon dealers is this-If a CA dealer sells a heavy duty diesel vehicle year model 2004 or older with a GVWR greater than 14,000 pounds, it will be refused registration renewal in 2020.  In 2021 the year model moves to 2007 and older and in 2023 the year model becomes 2010 and older.  The liability created would be significant-if a dealer chooses to sell such a vehicle it is highly recommended that full disclosure be given to the purchaser, explaining the short term use which will be available in California.  The Air Resource Board has drafted a disclosure which must be used.  CLICK HERE to view that document.  It is also highly recommended that you consult a trusted attorney for specifics regarding the presentation of such a disclosure and any additional steps which may help reduce your liability.