Automobile Fraud: ARKANSAS
State Odometer Statute: Ark. Code Ann. §§ 4-90-201 to 4-90-207
State Odometer Statute: Ark. Code Ann. §§ 4-90-201 to 4-90-207
State Odometer Statute: Cal. Veh. Code §§ 28050–28053 (West)
State Odometer Statute: Colo. Rev. Stat. §§ 42-6-201 to 42-6-206
State Odometer Statute: Conn. Gen. Stat. § 14-106b
Prohibited acts: (1) For any person or their agent to remove, turn back or change the reading on an odometer; (2) Sell, offer for sale, use, install or cause to be installed any device which causes an odometer to inaccurately register mileage driven.
Exclusions: Only remove or turn back odometer if repair or replace but each odometer repaired and each new or used odometer shall display mileage at least equal to mileage prior to repair.
State Odometer Statute: Del. Code Ann. tit. 21, §§ 6401 to 6420
State Salvage Vehicle Statute: D.C. Code § 50-505
State Odometer Statute: Fla. Stat. § 319.35
State Odometer Statute: Ga. Code Ann. § 40-8-5
This appendix summarizes state states and regulations relating to yo-yo sales, including those that require retail installment contracts to include all essential terms.
Alaska Stat. § 45.25.610
Prohibited acts: Noncompliance with required procedures and notices.
Ariz. Rev. Stat. Ann. §§ 44-1371 (sales and leases), 44-286
Prohibited acts: When sale or lease conditioned on final approval of financing, the sale or lease of trade-in vehicle prohibited prior to final approval or prior to return to buyer (§ 44-1371). Sale contract to have no blank spaces (§ 44-286).
Required procedures: Until financing for sale or lease is approved or disapproved, seller must retain title to, and possession of, trade-in vehicle.
Ark. Code Ann. §§ 23-112-316 (new vehicles), 23-112-613 (used vehicles)
Cal. Civ. Code § 2982.5 (West)
Prohibited acts: Seller may not provide any security or other guaranty of payment on loan made to buyer, and may not receive any commission or other remuneration for assisting the buyer to obtain the loan.
Colo. Rev. Stat. § 6-1-708 (sales and leases)
Prohibited acts: Deceptive business practice to: (1) guarantee, as defined, approval of sale or lease when sale contract or lease conditioned on credit approval; (2) sell or lease trade-in vehicle before transaction finalized; (3) fail to return any collateral or down payment tendered pending credit approval when financing not approved.
Conn. Gen. Stat. § 14-62(h)
Prohibited acts: No licensed dealer shall deliver or permit a retail purchaser to take possession or delivery of any used motor vehicle until such purchaser has paid in full for the vehicle or until financing offered by the dealer for such vehicle has been approved by the lending institution or other entity through which any financing agreement has been made.
Required procedures: None specified.
Required notices: None specified.
Enforcement: Violation is class B misdemeanor.
Del. Code Ann. tit. 5, § 2907(a), (c), (i)
Prohibited acts: Noncompliance with sale contract requirements.
Required procedures: Sale contract to have no blank spaces and contain essential financial details as specified. Some blank spaces as to vehicle identification and date of first installment may be left blank if vehicle not yet delivered to buyer. Prior to delivery of required contract to buyer, buyer may rescind contract and receive complete refund of any down payment including trade-in.
Fla. Stat. § 520.07
Prohibited acts: Noncompliance with sale contract requirements.
Required procedures: Sale contract to have no blank spaces and contain essential financial details as specified. Some blank spaces as to vehicle identification and date of first installment may be left blank if vehicle not yet delivered to buyer. Prior to delivery of required contract to buyer, buyer may rescind contract and receive complete refund of any down payment including trade-in.
Ga. Code Ann. § 10-1-32
Prohibited acts: Noncompliance with sale contract requirements.
Required procedures: Sale contract to have no blank spaces; however, no specific financial arrangements are included as required elements of contract. Some blank spaces as to vehicle identification and date of first installment may be left blank if vehicle not yet delivered to buyer. Prior to delivery of required contract to buyer, buyer may rescind contract and receive complete refund of any down payment including trade-in.
Idaho Admin. Code r. 04.02.01.237
Prohibited acts: If sale becomes null and void, dealer must return trade-in vehicle upon buyer’s return of the purchased vehicle; if trade-in vehicle is no longer available, dealer must pay consumer the trade-in allowance within one business day.
Required procedures: None specified.
815 Ill. Comp. Stat. § 505/2C
Prohibited acts: Failure to return down payment, including trade-in, if furnishing of merchandise, whether under purchase order or contract of sale, is conditioned on consumer providing credit references or having a credit rating acceptable to seller and seller rejects the consumer’s credit application.
Required procedures: None specified.
Required notices: None specified.
La. Stat. Ann. § 32:1261(A)(2)(f)
Prohibited acts: Noncompliance with required procedures and notices.
Required procedures: Dealer must provide buyer with written notice of terms of “spot delivery,” a conditional sale contract signed by buyer. Dealer not to sell trade-in until sale finalized.
Md. Code Ann., Transp. § 15-311.3
Prohibited acts: Noncompliance with required procedures and notices.
940 Mass. Code Regs. § 5.04
Prohibited acts: Failure to return buyer’s deposit promptly when buyer cancels before contract has been accepted by authorized dealer representative, or when contract is subject to buyer’s ability to obtain financing of their choice and the buyer cannot obtain financing after reasonable efforts. Seller must not increase purchase price after accepting buyer’s purchase offer; trade-in value may be reappraised only if evidence found of substitution or damage prior to transfer to seller.
Miss. Code Ann. § 63-19-31
Prohibited acts: Noncompliance with sale contract requirements.
Required procedures: Sale contract to have no blank spaces and contain all essential financial details as specified. Some blank spaces as to vehicle identification and date of first installment may be left blank if vehicle not yet delivered to buyer. Prior to delivery of required contract to buyer, buyer may rescind contract and receive complete refund of any down payment including trade-in.
Mo. Rev. Stat. § 365.070
Prohibited acts: Noncompliance with sale contract requirements.
Required procedures: Sale contract to have no blank spaces and contain all essential financial details as specified. Prior to delivery of required contract to buyer, buyer may rescind contract and receive complete refund of any down payment including trade-in.
Required notices: In 10-point boldface type, notice to buyer not to sign if contract has blank spaces, and that buyer has right to copy of completed contract.