P.O. Box 160
Trenton, NJ
Contact: Dave Weinstein
RELEASE: Janurary 24, 2006

Rule Changes Approved for New and Used Auto Dealers

Consumer Protection and Security Measures

(TRENTON) – The NJ Motor Vehicle Commission has approved important amendments to the rules that govern how new and used auto dealers conduct business in the Garden State. These amendments provide increased consumer protection and security.

Commission members unanimously approved the amendments at MVC’s monthly public meeting on Wednesday, January 11.

“These regulations have leveled the playing field in New Jersey, something our neighboring states have already accomplished. Any loopholes that may have existed for dishonest dealers and others who would misrepresent themselves or their intentions have been closed,” MVC Chief Administrator Sharon Harrington said.

"When consumers pay their hard-earned money for a motor vehicle, they need to trust that they are negotiating with legitimate and honest dealers," Division of Consumer Affairs Director Kimberly Ricketts said. "This regulation will go a long way toward putting unscrupulous dealers out of business while placing consumers and law enforcement officials back in the driver's seat."

Among the amendments to New Jersey’s dealer regulations are:

-Improved tracking of controlled MVC documents, such as dealer license plates, inspection stickers and temporary license plates.

-Elimination of "phantom dealerships" and "accommodation addresses," a change that holds licensed dealers accountable to consumers and enforcement personnel from MVC, the State Police, the NJ Division of Consumer Affairs and the NJ Division of Taxation, among others.

-Provision of detailed procedures for disciplinary measures and remedies.