August 16, 2024 • By Dennis Beaver
What are your legal rights, and a car dealer’s obligation concerning vehicle registration?
Learning some of the possible legal consequences of driving a car that lacks current registration wasn’t what Joe had in mind when he purchased a 3 year-old Toyota 4-Runner for his nephew, Abe, who drove it for a local chauffeur service.
But there was a problem, as Joe explained:
“I bought in February from one of the largest Toyota dealers in our town. We were told that it was a trade-in from a customer who was unable to locate the vehicle’s registration or title, but not to worry, because if she didn’t bring it to them, they would apply to DMV for a replacement.
“They issued a temporary registration which was taped on the passenger inside windshield.”
The car had no license plates, “as they were personal to the customer, and were transferred to the new car she purchased.”
Abe immediately went to work and, as his employer had a contract with the two country clubs in town, “I earned a very good income, both as an hourly employee and from healthy tips,” he said.
Time Limits to Legally Drive with Temporary Registration
While time limits vary state-to-state, in general, buyers are able to drive the vehicle for a limited time on a dealer-issued temporary registration.
Joe’s credit union financed the purchase and required full-coverage insurance with them listed on the insurance policy as lienholder.
Despite repeated calls to the dealership, asking “Where is the car’s registration?” Joe was assured by the used car sales manager, “We are working on it, but our customer isn’t very cooperative, and in fact, the new car we sold her had to be repossessed due to checks bouncing and a failure to keep monthly insurance premiums current.”
What Abe and Joe are facing
Not having valid, current registration on a vehicle is nothing to sneeze at because:
(1) Police can stop and ticket the driver as unregistered vehicles may not be driven legally on public roads.
(2) An owner faces parking violations, towing and impounding if the vehicle is found on or operated on public roads.
(3) Fines can range from $250 to $3,000 or more, depending on the state and any prior violations.
(4) Penalties can include being arrested, doing time in jail and possible impounding the vehicle, points on a driver’s license, and suspension of the license.
(5) If auto insurance was issued under a temporary registration, coverage could lapse, depending upon the carrier. Driving a car without insurance is its own violation of law.
Be Patient
In their state, 90 days is the limit of validity for a dealer-issued registration.
Abe had been driving the 4-Runner since February. “But I just received notices from my employer and auto insurance, that unless the vehicle was registered in my name before the expiration of the temporary registration, insurance would be cancelled and I could not drive for the company. Every time I call, the used car sales manager just says, ‘Be patient, we are working on it.’
“But my family depends on that income. Can you help us?”
Not Who You Know But Who Knows You
It would have been easy to just send Abe and Joe down to their local DMV investigations office and file a complaint against the dealer who had the legal duty of providing them the registration.
But that would take time and Abe would be out of a job.
Instead, I set up a conference call with Joe, Abe, and the dealership, asking to be connected with the general manager but was transferred to his assistant.
When “Sheri” came on the line, I just said, “My name is Dennis Beaver and I am not representing your customers, but as a journalist, trying to help them,” and outlined the problem.
My next call was to the manager of Joe’s credit union.
“Joe, your customer, really needs your help. The Toyota dealer appears unable to produce registration on the 4-Runner you financed, and he will likely stop making any more payments. Would you please call the dealership and do what you can to help Joe?”
A Little Patience Was Called for Now
“So, what do we do now?” Both Abe and Joe asked.
“We wait for our phone to ring, and my prediction is no more than 5 minutes. You are about to see what is meant by the power of the press.
Three minutes later the Toyota general manager called:
“Mr. Beaver, please tell them to bring the car right over to us, now if possible. We will unwind the sale, refund all of their payments and insurance premiums they paid. And thanks for handling this the way you did.”
Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.