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Trans 138.025(2)(a) (a) Express statutory exclusions. Any person described in s. 218.0101 (23) (b), Stats.
Trans 138.025(2)(b) (b) Limited private sales. Any person who sells or who offers or attempts to negotiate a sale of 5 or fewer used motor vehicles during a 12 month period, provided that the vehicles are privately titled to that person.
Trans 138.025(2)(c) (c) Auxiliary business services. A person who provides services to prospective sellers or buyers which aid the sale of motor vehicles if and only if the service provider's compensation is determined prior to, and is completely independent of, the sale of any motor vehicle.
Trans 138.025 Note Note: This exemption is primarily intended to allow advertising companies, newspapers, magazine publishers, property lessors, and others to provide their usual business services to dealers without having to be licensed as dealers themselves, even though their services or activities may encourage or facilitate vehicle sales.
Trans 138.025(2)(d) (d) Retail disposal of vehicles by business fleet owners. A corporation, firm, association, partnership, or other business that sells its own used motor vehicles to retail buyers, provided that all of the vehicles are privately titled to the seller; and that all the vehicle sales are incidental.
Trans 138.025 Note Note: This exemption allows fleet owners to sell off their surplus property to retail customers without getting a dealer license. It does not apply, however, to companies which lease, rent or manufacture motor vehicles since their vehicles are not privately titled.
Trans 138.025(2)(e) (e) Wholesale disposal of vehicles by business fleet owner. A corporation, firm, association, partnership, or other business that sells its own used motor vehicles, provided that all sales are made to licensed motor vehicle, wholesale, motor vehicle auction, or salvage dealers; and that all vehicle sales are incidental.
Trans 138.025(2)(f) (f) Exempt auction services. A retail auctioneer in compliance with s. Trans 138.028.
Trans 138.025(2)(g) (g) Licensed wholesalers. A wholesaler in compliance with s. Trans 138.027.
Trans 138.025(2)(h) (h) Licensed salespersons. A motor vehicle salesperson licensed in accordance with s. 218.0114 (1), Stats., and acting within the scope of his or her employment with a licensed dealer.
Trans 138.025 History History: Cr. Register, June, 1991, No. 426, eff. 7-1-91; corrections in (1), (2) (intro.), (a), and (h) made under s. 13.93 (2m) (b) 7., Stats., Register February 2004 No. 578.
Trans 138.027 Trans 138.027Wholesaler.
Trans 138.027(1) (1) No person may act as a wholesaler in this state without a valid wholesaler license under ss. 218.0101 to 218.0163, Stats.
Trans 138.027(2) (2) A wholesaler may not sell motor vehicles to retail buyers.
Trans 138.027(3) (3) A wholesaler may not consign motor vehicles to a motor vehicle dealer.
Trans 138.027(4) (4) A wholesaler shall comply with ss. Trans 138.03 (5), 138.04 (1) (b) and (2), 138.06, 138.07 and this section, but is otherwise exempt from this chapter.
Trans 138.027 History History: Cr. Register, June, 1991, No. 426, eff. 7-1-91; correction in (1) made under s. 13.93 (2m) (b) 7., Stats., Register February 2004 No. 578.
Trans 138.028 Trans 138.028Retail auctioneers; limited exemption. Notwithstanding s. Trans 138.025, a retail auctioneer selling motor vehicles may conduct business without a motor vehicle dealer license, provided the retail auctioneer meets all of the following requirements:
Trans 138.028(1) (1) None of the vehicles offered at auction are owned by a motor vehicle dealer, wholesaler, manufacturer, or other licensee under ch. 218, Stats.
Trans 138.028(2) (2) Each auction is clearly distinct in place and date and meets at least one of the following conditions:
Trans 138.028(2)(a) (a) It includes only those vehicles owned by a single person, where person means an individual, household, association, firm, or corporation including its subsidiaries and divisions; or,
Trans 138.028(2)(b) (b) The auction includes no more than 3 motor vehicles.
Trans 138.028 Note Note: For example, an auctioneer may not need a dealer license when the auction only involves vehicles owned by one individual, corporation, or other “person." If the auction includes vehicles owned by 2 or more persons, the auctioneer or auction company usually needs a dealer license. The only exception occurs in very small consignment auctions, where no more than 3 vehicles are offered for sale at a single auction.
Trans 138.028(3) (3) The auction is not conducted on the permanent business premises of any motor vehicle dealer, wholesaler, wholesale auction dealer, or other person licensed under ch. 218, Stats.
Trans 138.028(4) (4) The auctioneer does not hold regular or frequent auctions under the conditions described in this section at a single location. Frequent auctions at the same location include, though are not limited to, situations in which 3 or more vehicle auctions are conducted in the same place within 12 months.
Trans 138.028 History History: Cr. Register, June, 1991, No. 426, eff. 7-1-91.
Trans 138.03 Trans 138.03Dealer business facilities.
Trans 138.03(1) (1) Business facilities required to be provided and maintained by motor vehicle dealers are:
Trans 138.03(1)(a) (a) A permanent building in this state wherein there are facilities for:
Trans 138.03(1)(a)1. 1. A business office to maintain the books, records, and files necessary to conduct business.
Trans 138.03(1)(a)2. 2. A minimum 12 x 20 foot area accessible for automobile display, pre-sale preparation, or repair purposes. Motorcycle dealers who do not also sell automobiles shall provide an area of sufficient size to display, prepare, or repair at least 3 units. Truck dealers who do not sell automobiles are exempt from the requirements of this subdivision.
Trans 138.03(1)(a)3. 3. A repair shop, or a service agreement with a nearby repair shop, where there are repair tools, repair equipment and personnel to service such vehicles. Any service agreement shall be on the form provided by the department.
Trans 138.03(1)(b) (b) A vehicle display lot adjacent to the business office, unless all vehicles offered for sale are displayed within the business building.
Trans 138.03(1)(c) (c) The business premises which provide all required facilities shall comply with local zoning, building code and permit requirements.
Trans 138.03(2) (2) A residence, tent, or temporary stand is not a sufficiently permanent business facility within the meaning of this section. As used in this section and s. 218.0116 (3), Stats., “residence" means the domicile of a person who is an employee or owner of the dealership licensed, or applying for a license, under ss. 218.0101 to 218.0163, Stats. “Residence" does not include a building either formerly used as a residence or used as a residence by persons having no interest in an existing dealership. A motor vehicle dealer licensed by the department prior to July 1, 1991 despite having the required business office or indoor display or repair area in his or her residence may continue to use those facilities so long as ownership of the business remains unchanged and his or her dealer license is renewed continuously on or after July 1, 1991.
Trans 138.03(3) (3) More than one motor vehicle dealer, wholesaler or other business may share a single permanent building.
Trans 138.03(3)(a) (a) If a licensed motor vehicle dealer shares facilities with another motor vehicle dealer, wholesaler, or other business, each licensee shall:
Trans 138.03(3)(a)1. 1. Display a dealership sign which satisfies s. Trans 138.06.
Trans 138.03(3)(a)2. 2. Separate its own vehicle display lot from areas used by other licensees; and
Trans 138.03(3)(a)3. 3. With each license application, provide a copy of the lease agreement between the owner of the property and the dealer along with a diagram of the facilities for the designated location. If the dealer sublets the facilities from a lessee, that dealer shall provide a copy of the sublease and a copy of the lease authorizing the lessee to execute subleases.
Trans 138.03(3)(b) (b) Each licensee sharing a permanent building with another licensee shall satisfy all the requirements of par. (a) within 1 year after July 1, 1991 or the license for each noncomplying dealership may be denied or suspended until the dealership facilities comply with this section.
Trans 138.03(3)(c) (c) If the dealerships which share facilities also share majority ownership, they are exempt from the requirements of par. (a).
Trans 138.03(4) (4) The business premises which provide all required facilities shall comply with local zoning, building code and permit requirements.
Trans 138.03(5) (5) Motor vehicle wholesalers of used vehicles are subject to subs. (1) (a) 1., (b), and (3) and (4).
Trans 138.03(6) (6) A motor vehicle dealer who is not located in this state, who accepts vehicle purchase orders or lease agreements placed by fax, telephone, the Internet, mail, or some other remote means from persons within this state, and who delivers vehicles to persons within this state is exempt from the dealer business facilities requirements of sub. (1), provided that the dealer maintains a business office in another jurisdiction at which the books, records and files pertaining to vehicle sales or leases to persons in this state are maintained and the dealer makes these documents available to the department for inspection upon demand. Nothing in this section shall be construed to exempt the dealer from the license requirement of s. 218.0114 (1), Stats.
Trans 138.03 History History: Cr. Register, May, 1966, No. 125, eff. 6-1-66; am. (1), r. and recr. (2), r. (3), Register, April, 1977, No. 256, eff. 5-1-77; renum. from MVD 13.01 and r. and recr. Register, July, 1981, No. 307, eff. 8-1-81; emerg. am. (1) (b), eff. 1-13-83; am. (1) (b), r. (2), renum. (3) to be (2), Register, October, 1984, No. 346, eff. 11-1-84; am. (1) (a) 1. and 2., cr. (2) and (3), renum. (1) (c) to be (4), renum. (2) to be (5) and am., Register, June, 1991, No 426, eff. 7-1-91; CR 99-135: cr. (6) Register February 2004 No. 578, eff. 3-1-04; corrections in (2) made under s. 13.93 (2m) (b) 7., Stats., Register February 2004 No. 578; CR 06-135: am. (1) (a) (intro.) and (6), Register August 2007 No. 620, eff. 9-1-07.
Trans 138.04 Trans 138.04Records kept. This section establishes the minimum books and records required to be kept and maintained at the licensed business premises by motor vehicle dealers and used motor vehicle wholesalers under ss. 218.0116 (3) and (5), and 342.16 (2), Stats., and the required retention periods for those records.
Trans 138.04(1) (1)Dealer required records. Motor vehicle dealers shall maintain, at a minimum, the following books and records:
Trans 138.04(1)(a) (a) Ownership records. As evidence of ownership, title for each used vehicle owned and offered for sale and manufacturer's statement of origin, or MSO, for each new vehicle owned and offered for sale. If a manufacturer or lending institution is holding the title or MSO to ensure payment at the time of sale, the dealer shall have for each such vehicle either a factory invoice, a completed dealer reassignment form, or a purchase contract evidencing trade-in or purchase. If the used vehicle is a manufacturer's buy-back under s. 218.0171, Stats., and the manufacturer holds title to the vehicle, the dealer may have in its possession a copy of the title.
Trans 138.04 Note Note: Section 218.0171, Stats., is commonly known as the lemon law.
Trans 138.04(1)(b) (b) Consignment sale documents.
Trans 138.04(1)(b)1.1. Written consignment agreement between owner and dealer for each vehicle not owned by the dealer and offered for sale by the dealer. Consignments between motor vehicle dealers are prohibited. Nor may wholesalers consign vehicles to motor vehicle dealers. Each consignment agreement shall contain:
Trans 138.04(1)(b)1.a. a. Date of consignment;
Trans 138.04(1)(b)1.b. b. Name of consignor and consignee;
Trans 138.04(1)(b)1.c. c. Description of vehicle including year, make and identification number, a description of the prior use of the vehicle and an odometer disclosure statement as specified in s. Trans 154.08 (1). The odometer disclosure statement shall be separate from the rest of the consignment agreement;
Trans 138.04(1)(b)1.d. d. Terms of agreement including duration of agreement, agreed upon minimum selling price at which the dealer is authorized to sell the vehicle for the consignee, the agreed disposition of any amount received for the vehicle above the minimum sales price, and the amount of the dealer's sales commission;
Trans 138.04(1)(b)1.e. e. A statement by the owner that either the vehicle is clear of any liens, or identifying the lienholder and stating the amount of any outstanding lien balance;
Trans 138.04(1)(b)1.f. f. Signatures by the vehicle owner and selling dealer; and
Trans 138.04(1)(b)1.g. g. An agreement between the vehicle's owner and the dealer providing that the dealer will hold the title certificate or a copy of both sides of the original title certificate for inspection by potential purchasers during the period of consignment, and that the title reassignment by the owner portion of the original title certificate will not be signed until the vehicle is actually sold. The agreement shall also provide that if the vehicle is not sold during the duration of the consignment, the dealer will promptly return the title certificate to the owner along with the vehicle.
Trans 138.04(1)(b)2. 2. Copies of any documents required to be created under s. Trans 139.08.
Trans 138.04(1)(c) (c) Vehicle condition disclosures. Vehicle general condition disclosure statements, as required by s. Trans 139.04 (4).
Trans 138.04(1)(d) (d) Odometer disclosure. Odometer disclosure statement from prior owner and odometer disclosure statement to subsequent purchaser, as required by s. Trans 139.04 (7).
Trans 138.04(1)(e) (e) Contracts. Original or copy of motor vehicle purchase contracts, as required by s. Trans 139.05, purchase orders and invoices. Copy of MV1 or MV11, Wisconsin title, registration or license plate application forms, completed for each vehicle purchaser as additional evidence of sale, and information regarding collection of sales tax and Wisconsin title and registration fees, when applicable. If the contract supersedes any prior offer or contract between the parties, copies of the superseded contract as required by s. Trans 139.05 (1) (a) 2.
Trans 138.04(1)(f) (f) Dealer record book.
Trans 138.04(1)(f)1.1. The following information shall be kept on every used vehicle, including executive and demonstrator vehicles, bought, sold, exchanged or consigned:
Trans 138.04(1)(f)1.a. a. Date of acquisition of the vehicle.
Trans 138.04(1)(f)1.b. b. Name and address of the person from whom the vehicle was acquired.
Trans 138.04(1)(f)1.c. c. The year, make and vehicle identification number, or VIN, of the vehicle.
Trans 138.04(1)(f)1.d. d. The date of the disposition of the vehicle.
Trans 138.04(1)(f)1.e. e. The name and address of the person to whom any vehicle was disposed.
Trans 138.04(1)(f)2. 2. Persons requiring a license who do not maintain their records in an electronic data processing record keeping system shall maintain the information required in subd. 1. in a permanently bound book containing consecutively pre-numbered pages with horizontal line ruling. Initial purchase entries shall be made immediately as each vehicle is acquired and sales information entered on the same line at subsequent time of sale. All entries shall be consecutively entered in ink and be legible. No blank horizontal lines shall be allowed. Vertical dividing lines shall be provided, and may be manually drawn, to divide the following information as shown: - See PDF for table PDF
Trans 138.04(1)(f)3. 3. Persons requiring a license who maintain their records in an electronic data processing record keeping system shall maintain the information required in subd. 1. in compliance with the following requirements:
Trans 138.04(1)(f)3.a. a. One record shall contain all of the information specified in subd. 1.
Trans 138.04(1)(f)3.b. b. Initial purchase entries shall be made immediately as acquired, and sales information shall be completed on the same record at the time of sale.
Trans 138.04(1)(f)3.c. c. The information shall be accessible for inspection and shall be retrievable electronically by the date acquired, name of person from whom the vehicle was acquired, VIN, date sold, and name of person to whom the vehicle was disposed.
Trans 138.04(1)(f)3.d. d. All records shall be retrievable during the inspection and a printer shall be kept on site to provide hard copy if requested. Hard copy shall include all information in the same format as specified in par. (f) 2. Horizontal and vertical lines are not required.
Trans 138.04(1)(f)3.e. e. There is an employee of the person requiring a license available to retrieve the records during the hours of operation of the business.
Trans 138.04(1)(h) (h) Electronic record keeping. Persons requiring a license who maintain their used vehicle records as specified in par. (f) in an electronic data processing record keeping system can satisfy the record retention requirement in sub. (3) with hard copy of their records when memory limitations of the electronic system prohibit electronic storage for the specified period. Hard copy shall meet the following requirements:
Trans 138.04(1)(h)1. 1. Hard copy shall include only those records of vehicles that have been disposed of. Incomplete records of vehicles acquired and still in inventory must be maintained on the electronic system until disposed of and the record is completed.
Trans 138.04(1)(h)2. 2. Hard copy shall include all information in the same format as specified in par. (f) 2. Horizontal and vertical line ruling shall not be required.
Trans 138.04(1)(h)3. 3. Hard copy shall be printed in the order of the date acquired and each report shall contain at least 12 consecutive months of vehicle acquisitions.
Trans 138.04(1)(h)4. 4. Hard copy shall contain system generated page numbers and the current date on every page.
Trans 138.04(2) (2)Wholesaler required records. Motor vehicle wholesalers (used vehicles) shall maintain those books and records included in sub. (1) (a), (d) and (f) for the period specified under sub. (3). The records and books to be maintained are limited to used vehicle record books, invoices, dealer reassignment forms, regular and conforming power of attorney forms, prior owner odometer disclosure statements and wholesaler's subsequent odometer disclosure statements.
Trans 138.04(3) (3)Retention requirements. The used vehicle information described in sub. (1) (f) shall be maintained for a period of 5 years, as required by s. 342.16, Stats., and all other required records shall be maintained for a period of 5 years from the date of sale, including copies of factory invoices, dealer reassignment forms, consignment agreements, purchase contracts, MV1 or MV11 Wisconsin title, registration or license plate applications, Wisconsin buyers guides, regular and conforming power of attorney forms, prior owner odometer disclosure statements, dealer's subsequent odometer disclosure statements, lessor's notices to lessees relating to odometer disclosure required at end of lease, and lessee's odometer disclosure statement completed at end of lease. The records shall be kept in the place of business during business hours and shall be open to inspection and copying by a representative of the department during reasonable business hours. Multi-location dealerships may keep records at a single location. If the location is out of state, the dealerships shall reimburse the department for actual and necessary expenses, plus wages pursuant to the appropriate state compensation plan or applicable labor agreement for examining the documents at that location. The actual and necessary expenses charged include the following:
Trans 138.04(3)(a) (a) Travel expenses.
Trans 138.04(3)(b) (b) Meal expenses.
Trans 138.04(3)(c) (c) Lodging expenses.
Trans 138.04(3)(d) (d) Telephone expenses.
Trans 138.04(3)(e) (e) Copying and data processing expenses.
Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.