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Georgia Independent Auto Dealers, WE NEED YOUR HELP getting curbstoning laws enforced. There are clear laws prohibiting unlicensed sales, and property owners need to be held accountable for contributing to the problem. GIADA also encourages you to hold your local law enforcement agencies accountable for enforcing the law. Signing this petition is a step in the right direction and hopefully with enough signatures we can help minimize or eliminate curbstoning in your market area.
Curbstoning hurts everybody
We need your help to stop it from
happening in your community
-------- A petition to stop illegal sales of used cars --------
The Georgia Independent Automobile Dealers Association (GIADA) was created in 1956 as a not-for-profit trade association for the independent used car dealers in the state of Georgia. There are over 4,000 licensed used car dealers in Georgia. Currently, GIADA has over 1,800 active members.
Georgia used car dealers are responsible for approximately 30% of all used car transactions totaling approximately $2 Billion in sales. Estimated tax revenue generated from Georgia used car dealers is over $129 Million.
Georgia Independent Car dealers in our state are regulated by the State Board of Registration Professional Licensing Division under the Office of Secretary of the State just as Nurses, Architects, Dentistry, Accountants and thirty eight other occupations. New independent dealer applicants must complete a required four hour training class on local and federal laws, rules and regulations as well as learn about the Fair Business Practices Act. Included in this but not limited to deceptive sales practices and odometer law compliance. In order for existing dealers to renew their dealer license they must complete a six hour continuing education seminar every two years to update them on all the new laws and regulations.
All Georgia licensed dealers are required to have an established place of business, public liability insurance and post a $20,000 Surety Bond. They are also required to have a sign and a working telephone listed in the trade name. Every licensed independent dealer charges, collects and remits state sales tax on every sale they make as well as any local option county tax(s).
Georgia used car dealers are required by law to guarantee title transfer within thirty days or be subject to expensive fines. Federal law requires Georgia used car dealers to follow mandatory terrorists screening laws and laws to prevent illegal money laundering.
There is a real serious problem going on in many of our own communities that needs to be addressed and we are working hard to educate law enforcement and local government about these problems.
Unlicensed and illegal used car sales, (Curbstoning - as referred to in our business) in our state are having negative consequences and not only hurt the licensed auto dealers, the State, but also the consumer. Curbstoners regularly sell vehicles to consumers and ignore the laws in place to protect consumers. Many of these sellers will sell vehicles that reputable dealers would not touch. Victims of curbstoning often pay thousands of dollars above a cars actual value, only to later find out that the odometer was rolled back or that the car has salvage or flood history. Consumers victimized by Curbstoners have no or very little recourse like they do with licensed and bonded used car dealers. In many of these transactions, the vehicle the seller is selling is not titled or registered in their name.
The state is loosing a significant amount of tax dollars as a result of these illegal transactions. Curbstoners never charge, collect or remit sales tax, nor are these sales reported as income by the individuals who are engaged in this type of business.
Unfortunately, we have case after case of individuals all over our state in just about every community operating as if they were a dealer, and many do it as a living or for secondary income. And to exasperate the problem, we have property owners, or property management companies who turn a blind eye and allow many of these people to park vehicles on their property time after time as if it was a used car lot and think nothing of it. In some cases, property owners or property renters have just given up on the problem. Examples: Wal-Mart’s, K-Marts, vacant corner lots and service stations, to mention a few.
There are clear laws prohibiting unlicensed sales, and property owners need to be held accountable for contributing to the problem. Georgia Code 43-47-8.1 clearly states that property owners or any lessee of any real property shall not authorize more than two vehicles at the same time displayed for sale, or no more than five within any 12 month period.
Other laws on our books such as 43-47-2.(17A) define a Used Motor Vehicle Dealer as any person who is selling used vehicle for commission or with the intent to make a profit.
O.C.G.A. Code section 43-47-2. (17B) clearly states that the sale of five or more used vehicles in any one calendar year shall be prima-facie evidence that a person is engaged in the business of selling used motor vehicles and required to be licensed.
In code section 681-16-.01 (4) schedule of fines states that the display or sale of a vehicle for profit by unlicensed persons who have not properly titled and tagged, in their name, the vehicle offered for sale, are subject to $500 fines per violation.
There are some property owners in our state who are allowing people to park their vehicles for sale on their property and are charging consumers for this service. Examples of these cases are a hardware store or shopping center parking lots. These property owners have mistakenly interpreted the code to benefit them financially. Code section 43-47-8.1. (3) states that if the real property on which a vehicle is displayed or parked is a parking lot for which a fee is charged for the use of such parking lot and the owner or lessee of the vehicle displayed or parked has paid the fee for the use of such parking lot, the provisions of this code shall not apply. This law was written for individuals parking their vehicles in regular pay-to-park businesses or lots such as the private parking lots in downtown cities where parking on the street is limited or prohibited. The law was not intended to make it OK for property owners to allow “for-sale” vehicles on their property as long as if a fee was charged. The law does says it’s OK to post a for-sale sign on your personal vehicle while parked in one of these parking facilities or garages, such as the ones downtown city areas.
The penalties for violators of this law. O.C.G.A. 43-47-21 (a)
Any person, regardless of whether that person is a licensee or not, who commits or causes to be done any act that violates this chapter or fails to do any act or causes to be omitted any act that is required by this chapter shall be subject to a civil penalty not to exceed $3,000.00 for each violation. A violation of this chapter shall, for the purposes of this Code section, constitute a separate offense as to any motor vehicle or motor vehicle part; and each day during which any person offers for sale, sells, trades, transfers, or disposes of used motor vehicles or used motor vehicle parts without being licensed pursuant to this chapter shall constitute a separate offense.
(b) The penalty provided in subsection (a) of this Code section and any restitution due to specifically named consumers for violations of this chapter shall be recoverable by a civil action brought by the division, the board, the Attorney General, or any district attorney, solicitor-general, or municipal or county attorney in any superior or state court having proper jurisdiction. The proceeds of any civil penalty shall be remitted to the board by the clerk of the court in which such case is filed; provided, however, that in an action brought on behalf of a county or municipality one-half of the proceeds of such civil penalty shall be paid into the treasury of such county or municipality. The court shall order any restitution recovered on behalf of any consumer to be paid over directly to the consumer by the defendant.
(c) Any person damaged by a violation of this chapter may bring an action against the person committing the violation, regardless of whether that person is a licensee, in any superior court of competent jurisdiction to recover actual, consequential, and punitive damages, attorneys´ fees, and court costs.
We hope that after reading this you too are as concerned as we are, and will agree to help us educate the public, local government and law enforcement about the negative impact curbstoning is having in our communities and our local business.
The laws and penalties are in place. The problem…. The laws are not being enforced. |
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Georgia Independent Automobile Dealers Association ~ GIADA.
6903 Oak Ridge Commerce Way
Austell, Ga. 30168
770-745-9650
770-745-9655 - Fax
www.giada.org
Contacts:
Richard Rainwater, Executive Director
richard@giada.org
Paul John, Director of Membership & Education
paul@giada.org
Larry Mannion, President of GIADA
mmmtrs@coastalnow.net |
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