It is important for used car dealers to comply with the provisions of the California Vehicle Code §5753, Chapter 2 because it sets forth some of the legal requirements for transferring ownership of a vehicle in the state of California. This includes requirements for transferring the title of the vehicle in a timely manner, providing...Read More

How DealerXT’s Arbitration Addendum Helps Dealerships Reduce Legal Costs and Risk When it comes to managing legal risk, one overlooked but critical detail in a dealership’s retail installment sales contract and paperwork is the Arbitration Agreement. Many dealers assume that these contracts and agreements are standard. They are not!! Strategic Faults and Higher Costs in Arbitration...Read More

The arbitrator in this case highlighted that the outcome “ultimately turns on the credibility of the witnesses”. When disputes rely solely on one party’s word against another, dealers are exposed to uncertainty, extended litigation, and unnecessary costs. Credibility competitions are unpredictable and rarely end quickly. Even if a dealer prevails, the process is time-consuming and...Read More

In an arbitration ruling on January 13, 2025, Auto Legal Group (ALG) secured a complete victory for Nick Motors and ABC Credit, a key client in a dispute involving a plaintiff’s claims of failure to provide Spanish translations of documents as well as failure to disclose prior damage in Spanish. The plaintiff’s claims were not only denied, but the Arbitrator also...Read More

GEICO announces closure of California operations due to economic challenges The announcement One of the biggest insurers in the U.S., GEICO, has announced the closure of all its California locations. The company cites economic challenges as the reason behind the decision. The move will result in over 100 employees losing their jobs. The affected employees...Read More

Safeguarding Consumer Trust and Compliance in Trade-In Transactions In the automotive industry, trade-in transactions are a common practice, allowing customers to exchange their existing vehicles for a new purchase. However, failure to disclose pertinent information and properly identify trade-in vehicles can lead to legal repercussions and damage the reputation of dealerships. In this article, we...Read More

Introduction to Dealer Plates in Florida Section 320.13 of the Florida Statutes: Utilizing Extra Dealer Plates for Business Purposes As a dealer, you have the privilege of purchasing additional dealer plates to facilitate your business operations. According to Section 320.13 of the Florida Statutes, these plates are specifically intended for use on your vehicle inventory while...Read More

When checking a CARFAX report, it’s necessary to be mindful of any discrepancies that may appear in the odometer reading. As a dealer, you must ensure accuracy and confidence with the vehicle you’re selling. It is possible for an inconsistency to arise between sources – for example, if Nevada DMV registers a mileage at 4,000 yet an auction company...Read More

The practice of new car dealers selling vehicles over MSRP has been a topic of concern in the automotive industry, especially in high-demand/low-inventory situations. This article will explore the rules in California addressing this issue, and the potential legal implications for dealers. California and how consumer lawyers are using this argument against you. The practice...Read More

Understanding the Policies, Implications, and Consumer Rights Regarding Credit Card Charges in Dealership Transactions Dealerships charging credit card fees can be a source of confusion for customers. In this article, we will delve into credit card usage and surcharges at dealerships, particularly in the context of California law. We will also touch upon insights from...Read More