19A NCAC 03D .0226      VEHICLES OFFERED FOR SALE ON CONSIGNMENT

(a)  Any dealer offering a vehicle for sale that is on consignment from a manufacturer, distributor, factory branch, distributor branch, wholesaler, or individual shall have in his possession a consignment contract for each vehicle, executed by both parties.

(b)  The consignment contract shall consist of the following:

(1)           the effective dates of the contract;

(2)           the first, middle and last name, address, and the telephone number, if available, of the owner;

(3)           the description of the vehicle on consignment, including the make, model, body style, year, and vehicle identification number;

(4)           the listing charges;

(5)           the percentage of commission or the amount of the commission the dealer is to get if the vehicle is sold; and

(6)           the right of the dealer to receive the agreed upon commission, if the vehicle is sold after the termination of the agreement and as a result of the dealer's effort, which shall not exceed 30 days.

(c)  Any dealer offering a vehicle for sale on consignment shall tell the prospective customer that the vehicle is on consignment unless the dealer is going to take ownership of the vehicle by completing a re‑assignment on the title documents. Any dealer selling a vehicle on consignment from a wholesaler shall take ownership of that vehicle prior to its retail sale.

(d)  Dealer plates shall not be used to demonstrate a vehicle on consignment. However, the consignor's (owner's) plate may be used so long as the vehicle registration is active and liability insurance is in effect.

(e)  In addition to a consignment contract, the dealer shall keep on file an equipment listing of the vehicle, consisting of, but not limited to, the following:

(1)           owners name and address; and

(2)           a description of the vehicle which shall include the year, make, model, body style, color, odometer reading, additional equipment, and the disclosure of known defects.

(f)  The ownership documents of any vehicle on consignment shall be made available by the dealer to any North Carolina Division of Motor Vehicles employee on request.

(g)  The owner shall execute the ownership documents and deliver them to the purchaser at the time the vehicle is delivered.

History Note:        Authority G.S. 20-79(d); 20‑302;

Eff. June 1, 1988;

Amended Eff. January 1, 1994; October 1, 1991;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 22, 2018;

Amended Eff. September 1, 2021.