Dealer-related Information

We can't train you to be a motor vehicle dealer; however, with this section, along with our Licensing Requirements and Dealer Forms sections, we can help you by giving you the tips and tools to get you headed in the right direction.

Statutes and Regulations

There are currently four statutes and two regulations that direct the manufacture and sale of motor vehicles in Kentucky. Below is a brief summary of each.

• Chapter 138: Excise Taxes

• Covers the rules and regulations for dealers regarding tax payments, refunds, refund permits, records, invoices, legal action, penalties, etc.

• Chapter 186: Licensing of Motor Vehicles, Operators, and Trailers

• Covers general provisions, motor vehicle licenses, operator licenses, habitual violators, registration of trailers, nonresident violator's compact, and penalties.

• Chapter 186A: Automated Motor Vehicle Registration System

• Covers automated registration and titling systems, titling of custom-built motorcycles, vehicle identification numbers, fees, lien statements, clerk duties, suspension or revocation of titles, stolen vehicles and parts, damaged motor vehicles, penalties, etc.

• Chapter 190: Motor Vehicle Sales

• Covers insurance, bonds, temporary permits, franchise terminations, vehicle recalls, hearings, appeals, public records, installment sales contracts, odometer tampering, penalties, etc.

• Title 601: Transportation Cabinet Department of Vehicle Regulation

• Covers the Division of Motor Carriers, administration, motor vehicle tax, commercial driver licenses, driver licenses, driver improvement, motorcycle and bicycle safety, commissioned employees, coal transportation, and the transportation of solid waste.

• Title 605: Transportation Cabinet Motor Vehicle Commission

• Covers the Motor Vehicle Commission.

Now That You're a Dealer

Once you've been issued your dealer license and are open for business, there are still certain requirements you must meet and rules you must follow. Along with the abovementioned statutes, take a look at these requirements.

Confining Activities

Once you receive your license, you must make sure that all business activity takes place only within your licensed location; otherwise, you risk having your license suspended or revoked. Offsite sale and display permits are available for such business activity.

Location or Ownership Changes

A change in the location of a dealership requires notification to the commission before the change and an application for commission approval of the new location. The fee is $40 plus $10 for each owner listed, and a new license fee is not required.

A change in the ownership of a dealership requires a new application and new fees.

Displayed Licenses

Licenses for dealers and sales personnel must be displayed in the dealership's office area, and sales personnel must remember to carry a copy of their licenses with them during work hours.

Used Car Rule

The Federal Trade Commission (FTC) has provided a guide of rules for sellers and buyers of used cars, the Used Car Rule. The guide includes information about the dealer, the vehicle, and the warranty, as well as information about violations and penalties.

For more information, you can download the Staff Compliance Guidelines for the Used Car Rule.

Previous Owner Information

By law, all used cars must include a notice in 10-point, bold face type reading:

• NOTICE: KENTUCKY LAW REQUIRES THAT, IF REQUESTED, WE SHALL FURNISH YOU WITH THE NAME, ADDRESS, AND TELEPHONE NUMBER, IF AVAILABLE, OF THE PREVIOUS CONSUMER-OWNER OF THIS VEHICLE.

Advertising

Whether you're advertising consumer credit terms or consumer lease terms, the FTC has certain regulations to which you must conform.

• Advertising Consumer Credit Terms

• This online manual covers both open-end and closed-end credit disclosures as well as general information about who must comply, oral disclosures, violation liability, and general requirements.

• Advertising Consumer Lease Terms

• This online manual provides both general and specific requirements, as well as violations and penalties.

Midwest Region

Kentucky is included in the Midwest Region of the FTC. Contact the FTC office at

• Midwest Region

• Federal Trade Commission

• 55 East Monroe St., Suite 1860

• Chicago, IL 60603-5701

You can also contact the Consumer Response Center at

• Consumer Response Center

• Federal Trade Commission

• 600 Pennsylvania Ave., NW

• Washington, DC 20580

• 1-877-382-4357