N.Y. Comp. Codes R. & Regs. tit. 15 § 78.40

Current through Register Vol. 46, No. 25, June 18, 2024

Section 78.40 - Vehicles on consignment

(a) A vehicle is on consignment when a dealer agrees to buy or accept transfer of ownership of that vehicle from its owner only if he first succeeds in finding a purchaser for that vehicle.

(b) Upon accepting a vehicle on consignment, a dealer shall promptly enter the acquisition in the book of registry required by section 78.25 of this Part. A dealer shall not accept a vehicle on consignment unless the owner provides a letter of consignment and proof of ownership.

(c) A letter of consignment shall identify the vehicle by year, make, model and vehicle identification number, shall indicate the price the vehicle owner will accept for the vehicle, and shall state that the dealer has authority to sell the vehicle.

(d) A consignment ends when the vehicle is sold or the owner removes the vehicle from the dealer's control.

(e) An owner shall promptly sign his title or transferable registration to the dealer when the dealer tenders the contract price to the owner. A dealer may request a hearing if an owner refuses to sign over a title or transferable registration.

(f) A vehicle sold on consignment is a vehicle sold by a dealer. Vehicle and Traffic Law, section 417 applies to motor vehicles sold on consignment. This Part applies to all vehicles sold on consignment.

(g) Upon the sale of the vehicle on consignment, or upon its return to its owner, the appropriate entries shall be made by the dealer in the book of registry.

N.Y. Comp. Codes R. & Regs. Tit. 15 § 78.40