Essential Knowledge for Sales & Finance Transactions
Understanding the intricacies of titles in sales and finance transactions is crucial to avoid costly mistakes and ensure smooth processes. This guide highlights the importance of titles, handling trade-in packets, and managing drive-away transactions effectively. It emphasizes the significance of verifying titles, maintaining necessary documentation, and adhering to specific state regulations to prevent complications. Diligence in title management can safeguard dealership interests and enhance customer satisfaction.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
TITLES BASIC TITLE KNOWLEDGE FOR SALES & FINANCE
TITLES 101 TITLES ARE AN IMPORTANT PIECE OF THE PUZZLE IN OUR DEALER TRANSACTIONS. CONSIDER TITLES TO BE CASH OR DOWN PAYMENT. WE HAVE 50 STATES WITH 50 DIFFERENT RULES. SOME STATES ARE ELECTRONIC FILING STATES, SOME STATES SEND TITLES TO THE LIEN HOLDERS, AND OTHER STATES SEND TITLES TO THE CUSTOMERS PAY ATTENTION TO LIENS ON ALL TITLES. IT CAN TAKE ME A FEW WEEKS BEFORE I EVER SEE THE TRADE DEAL AND IF THE TRADE TITLE HAS A LIEN ON IT, IT CAN BE DIFFICULT TO RECEIVE, ESPECIALLY IF WE DID NOT PAY OFF THE DEAL. WHAT IF THE CUSTOMER STILL OWES MONEY AND WE MISS THIS, IT CAN END UP COSTING THE DEALERSHIP. ALWAYS KEEP ORIGINALS. MAKE THE CUSTOMER COPIES IF THEY REQUEST IT. NEVADA DOES NOT ACCEPT COPIES OF LIEN RELEASES OR TITLES.
TITLES 101 (contd) ALWAYS ASK THE CUSTOMER FOR THE TITLE. 9 TIMES OUT OF 10 THEY MOST LIKELY DO HAVE IT, THEY JUST HAVEN T BROUGHT IT WITH THEM. EVEN IF WE ARE MAKING A PAYOFF FOR THEM AND THE TITLE IS FROM ANOTHER STATE, ASK THEM BECAUSE NOT ALL STATES HOLD TITLES AND SOME STATES LIKE MONTANA, NEW YORK..ETC GIVE TITLES TO THE OWNER. LIEN RELEASE IS SENT OUT ONCE IT S PAID OFF. DON T ALWAYS ASSUME THAT GETTING A DUPLICATE TITLE IS THE EASIEST STEP TO TAKE. DUPLICATES ARE TIME CONSUMING AND VERY EXPENSIVE AND END UP COSTING US MORE THAN SOME VEHICLES ARE WORTH. JUST BECAUSE A VEHICLE IS REGISTERED IN NEVADA IT DOES NOT MEAN IT IS TITLED HERE. NEVADA ONLY REQUIRES A CURRENT REGISTRATION FROM ANOTHER STATE TO REGISTER A VEHICLE HERE, IT DOES NOT REQUIRE TITLE CHANGE.
TRADE IN PACKETS Trade-in packets are vital. You should have a Bill of Sale, Power of Attorney, Erasure Affidavit, One and the Same Affidavit, and Release Authorization. I want to ask Finance Managers to include Duplicate Title Application, as well. It seems that we are receiving more and more payoffs where there is no title received from the payoff lienholder. It helps immensely for me to have all these documents in the trade deal. Continue printing off SPOA and odometer statements as always. If you don t know where customer should sign title don t have them do it, this is why we have trade packets. Please make sure to verify odometer readings. Guessing is not acceptable when it comes to reporting actual mileage on a trade vehicle. We are required by the Federal Government to report actual mileage. Just take the extra time required to verify. Trust Affidavits are another form Finance Managers need to have signed as well. If a vehicle traded in is in a Trust name, I need the affidavit. If the vehicle purchased is going to be in a trust name, I also need a Trust affidavit. Call me if you re unsure about this.
DRIVE AWAYS DRIVE AWAYS! (EXCEPTION IS CALIFORNIA) All DRIVE AWAYS have a general timeline of 3-4 weeks depending on if there are issues with the transaction. Once title work is sent to respective DMVs, customer needs to title and register their vehicles in a timely fashion. If title work has not been completed within 60 days from date of sale we will request the paperwork be returned to us to title in Nevada. All sales tax collected will then be sent to Nevada and then registration will be carried out between customers and their lienholders at this point. Drive away customers who pay by cash will have dealership title or MSO sent to them. All financed drive always must be sent to DMV office when possible. I have experienced cases where certain DMV offices will not accept paperwork. When this happens, I have no choice but to send the title work directly to customer. This is a case by case/state by state basis. We do not pay or handle the customer s registration and title fees. They need to be informed that all of this will be their responsibility. I have had many customers who misunderstood this process and were very unhappy when they realized they still had to pay all of these fees or go into a DMV office and complete the paperwork. Make sure your customer understands this at signing.
DRIVE AWAY SALES TAX ISSUES RECIPROCAL! THE WORST WORD IN THE TITLE WORLD VOCABULARY. THERE IS NO SUCH THING AS RECIPROCAL WITH THE STATE OF NEVADA. WE KNOW THAT ALL DRIVE AWAYS WHICH ARE FINANCED HAVE NEVADA SALES TAX COLLECTED. THIS IS TO PROTECT OUR DEALERSHIP IN THE CASE THAT THE CUSTOMER DOES NOT GO INTO THEIR DMV TO TITLE THE VEHICLE AND I NEED TO RECALL THE PAPERWORK AND TITLE HERE. WE WOULD NOT BE ABLE TO SECURE THE LIEN WITHOUT NEVADA SALES TAX PAID HERE. OUT OF STATE CASH DEALS SHOULD NOT HAVE ANY SALES TAX COLLECTED UNLESS THE CUSTOMER SPECIFICALLY ASKS FOR THIS TO BE DONE. THIS SAVES US THE WORK OF HAVING TO REWORK THE DEAL FOR THE CUSTOMER WHEN THEY ARE CHARGED SALES TAX AGAIN IN THEIR STATE OF RESIDENCE. CUSTOMERS NEED TO UNDERSTAND THAT ULTIMATELY, THEY ARE RESPONSIBLE TO PAY THE SALES TAX, REGISTRATION AND TITLE FEES IN THEIR STATE OF RESIDENCE.
CALIFORNIA DRIVE AWAYS CALIFORNIA DRIVE AWAY M & M Registration Service will be handling California drive away paperwork. Cali customers will be given a form to read and sign at closing, as well as a POA which the registration service uses to handle all the DMV portion of their transaction. Once I forward, the paperwork to M&M registration, she contacts the customer, provides them with all the customer service from that point on. She will tell them what needs to happen at that point (smog, vin verification, etc.), inform them how much they owe, and once they send her the check made payable to California DMV she will priority mail the plates directly to them. She is very professional, courteous, and knowledgeable. This is a positive in two ways it provides our customer the convenience of not having to go into a DMV where the person behind the counter is not very helpful and claims they do not have the paperwork and it also provides the customer service we cannot really offer because we don t have access to California DMV records. This is definitely a win win situation for our customer and for us as a dealership to provide a higher level of customer service. The process before left many of our customers frustrated and as you know frustrated, unhappy customers are not pleasant to work with.
