Chapter Trans 138

Trans 138.05(2) (2) Prominently display the selling dealer’s name and address, and state in which the vehicle is titled, on each vehicle offered for sale, prior to each vehicle entering the auction sale building. Recommended methods are either affixing the information on the side window by grease pencil, or entering the information on a card plainly visible through either the windshield or side window.

Trans 138.05(3) (3) Maintain a copy of the signed title for each vehicle sold.

Trans 138.05(4) (4) For each motor vehicle sold at an auction sale, establish and maintain for 5 years those records as required under s. Trans 154.12 (3) as authorized under s. 342.157, Stats.

Trans 138.05(5) (5) Rescind the vehicle sale transaction if unable to furnish clear title to the purchasing dealer within 14 days following date of sale, if so requested by the purchasing dealer.

Trans 138.05(6) (6) Required 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.

Trans 138.05 History History: Cr. Register, April, 1977, No. 256, eff. 5-1-77; renum. from MVD 13.03 and am. Register, July, 1981, No. 307, eff. 8-1-81; am. (5), Register, June, 1991, No. 426, eff. 7-1-91; am. (3), r. and recr. (4), cr. (6), Register, January, 1996, No. 481, eff. 2-1-96; CR 99-135: am. (5) Register February 2004 No. 578, eff. 3-1-04; 2013 Wis. Act 363: am. (3) Register May 2014 No. 701, eff. 6-1-14.

Trans 138.06 Trans 138.06 Business signs. All motor vehicle dealers, motor vehicle wholesalers and motor vehicle wholesale auction dealers shall display the following signs:

Trans 138.06(1) (1) An exterior business sign in compliance with s. 100.18 (5), Stats. The sign shall state the name of the licensee, as shown on the department license and any other name under which the licensee does business as a motor vehicle dealer, wholesaler or auction dealer. The sign shall have lettering a minimum of 4 inches high, unless smaller dimensions are required in order to comply with a local zoning or sign ordinance.

Trans 138.06(2) (2) A sign posted on or adjacent to the entrance door describing the dealer’s business hours.

Trans 138.06 History History: Cr. Register, May, 1966, No. 125, eff. 6-1-66; renum. from MVD 13.03 and am. Register, April, 1977, No. 256, eff. 5-1-77; renum. from MVD 13.04, Register, July, 1981, No. 307, eff. 8-1-81; am. Register, October, 1984, No. 346, eff. 11-1-84; am. (intro.), cr. (1), (2), Register, June, 1991, No. 426, eff. 7-1-91.

Trans 138.07 Trans 138.07 Lease agreement.

Trans 138.07(1) (1) Motor vehicle dealers and wholesalers shall furnish a copy of a signed lease agreement with the dealer license application whenever first applying for a license for a business location, unless the business property is owned by the dealership entity.

Trans 138.07(2) (2) Such lease agreement shall name the dealer applicant as lessee and shall contain the following items:

Trans 138.07(2)(a) (a) Names of parties to the agreement;

Trans 138.07(2)(b) (b) Consideration for lease agreement;

Trans 138.07(2)(c) (c) Description of business premises;

Trans 138.07(2)(d) (d) Terms of lease; and

Trans 138.07(2)(e) (e) Signatures of parties to the agreement.

Trans 138.07 History History: Cr. Register, July, 1981, No. 307, eff. 8-1-81; am. (1), Register, October, 1984, No. 346, eff. 11-1-84; am. (1), Register, June, 1991, No. 426, eff. 7-1-91.

Trans 138.08 Trans 138.08 Temporary sales locations. A motor vehicle dealer shall be permitted to display and sell vehicles at a temporary site other than its licensed place of business, providing that:

Trans 138.08(1) (1) Each dealer furnishes the department with written notification of the sale at least 10 days in advance.

Trans 138.08(2) (2) The duration of each sale may not exceed 10 business days.

Trans 138.08(3) (3) A dealer may not participate in more than 6 sales during each licensing (calendar) year.

Trans 138.08(4) (4) Each participating dealer shall furnish each consumer a written notice of the 3-day “cooling off” rights pursuant to s. 423.203, Stats., (The Wisconsin Consumer Act).

Trans 138.08(5) (5) 

Trans 138.08(5)(a) (a) Permanent facilities required. The dealer maintains a permanent facility in this state in the manner required by s. Trans 138.03 (1) (a), except as provided in par. (b).

Trans 138.08 Note Note: Dealers without permanent facilities in the state may not conduct any sales in this state, including sales at temporary locations, except as provided in s. Trans 138.03 (6).

Trans 138.08(5)(b) (b) Motor home exemption. The department may exempt a dealer from the facility requirement in par. (a), but not from any other requirement of state law, if the dealer is selling motor homes at a rally or show sponsored by an established state, national or international motor home or camping association with a minimum membership of 100 members. An exemption under this paragraph may not be granted by the department more than once in any 4-year period. Any license issued by the department containing the exemption described in this paragraph shall be limited to one specific event and may not exceed 10 days duration. An exemption granted under this paragraph will not exempt a dealer from geographic sales restrictions contained in a dealer franchise agreement or other private contractual obligation.

Trans 138.08 Note Note: All off-premise sales in Wisconsin are limited to 10 days. s. Trans 138.08 (2), Stats. All other licensing and permit requirements of state law, including administrative rules issued by the department, apply to a motor home dealer granted an exemption under this paragraph. A Wisconsin dealer having franchise rights in the area in which the show is conducted is not prevented from enforcing those rights by the exemption in par. (b).

Trans 138.08 History History: Cr. Register, July, 1981, No. 307, eff. 8-1-81; am. (intro.), Register, October, 1984, No. 346, eff. 11-1-84; CR 99-135: am. (2) Register February 2004 No. 578, eff. 3-1-04; CR 06-135: cr. (5), Register August 2007 No. 620, eff. 9-1-07.

Trans 138.09 Trans 138.09 Effect of suspension, denial, revocation or voluntary surrender of license.

Trans 138.09(1) (1) Suspension.

Trans 138.09(1)(a) (a) No motor vehicle dealer may sell, offer to sell, or buy vehicles while the dealer’s license is suspended.

Trans 138.09(1)(b) (b) A motor vehicle dealer also engaged in business activities on the same premises which do not require a license issued by the department, such as the sale of motor vehicle accessories or repair of motor vehicles, may continue to conduct this unlicensed business while the dealer’s license is suspended. However, if such activities are conducted within the indoor facilities the dealer ordinarily uses to display motor vehicles offered for sale or lease with an option of purchase, then during the suspension all motor vehicles offered for sale or lease shall either be removed from those facilities or moved to a location in those facilities not accessible to consumers.

Trans 138.09(1)(c) (c) No licensed salesperson may be present at the dealership during the period of suspension, without the written permission of the department. The department may not grant permission unless the particular conditions of the salesperson’s employment require the salesperson’s presence to perform duties unrelated to the activities regulated by the department under ch. 218, Stats.

Trans 138.09(2) (2) Denial.

Trans 138.09(2)(a) (a) Except as provided in par. (b), no person whose application for an initial motor vehicle dealer license has been denied may do business as a motor vehicle dealer.

Trans 138.09(2)(b) (b) If the applicant held a valid license in the previous license year, the applicant may continue to do business after the applicant’s application has been denied, as authorized under s. 227.51 (2), Stats., provided the applicant meets all of the following requirements:

Trans 138.09(2)(b)1. 1. At the time of the license application, the applicant was a motor vehicle dealer whose motor vehicle dealer license had neither expired nor been revoked.

Trans 138.09(2)(b)2. 2. The applicant applied for an identical license for the same dealership and was denied.

Trans 138.09(2)(b)3. 3. The applicant requested a hearing to review the license denial within 30 days of the department’s denial.

Trans 138.09(2)(b)4. 4. The applicant paid all fees required for issuance of dealer registration plates for the new licensing period.

Trans 138.09(2)(b)5. 5. The applicant satisfied all of the requirements of s. 227.51 (2), Stats.

Trans 138.09(2)(c) (c) The department shall provide an applicant to whom par. (b) applies with dealer registration plates, salesperson licenses and a license for the dealership. The validity of all such licenses is conditional, pending the outcome of the review of the license denial. In the event the review by the division of hearings and appeals affirms the license denial, the dealer shall collect and surrender to the department all registration plates, salesperson licenses and the dealer license issued under this paragraph. Salesperson licenses shall be surrendered immediately. Registration plates and the dealer license shall be surrendered within 30 days.

Trans 138.09(2)(d) (d) The department may, upon request, permit an existing motor vehicle dealer continuously licensed during the preceding year, whose application for a license during the next license period is denied, up to 30 days to sell the motor vehicles in the dealer’s possession at the time of the denial, provided:

Trans 138.09(2)(d)1. 1. The dealer agrees to observe all special conditions imposed by the department.

Trans 138.09(2)(d)2. 2. The dealer’s request is received by the department within 7 days of the date when the denial takes place and includes a list of all motor vehicles in the dealer’s possession, including the vehicle identification number of each vehicle.

Trans 138.09(2)(d)3. 3. The dealer physically possesses the title certificate for each vehicle to be offered for sale.

Trans 138.09(2)(d)4. 4. Unless par. (b) applies, a dealer whose license has been denied may not offer, sell or lease with an option of purchase any motor vehicles to retail buyers and may not buy any vehicles, or accept motor vehicle trade-ins or consignments, during the 30-day period.

Trans 138.09(2)(d)5. 5. The 30-day period begins on the date of the department’s letter denying the license. However, if par. (b) applies, the 30-day period begins on the date of the order of the division of hearings and appeals affirming the department’s denial of the license.

Trans 138.09(3) (3) Revocation.

Trans 138.09(3)(a) (a) Except as provided in par. (b), no person whose motor vehicle dealer license has been revoked may do business as a motor vehicle dealer after the effective date of the revocation.

Trans 138.09(3)(b) (b) Unless prohibited by the order of revocation, the department may, upon request, allow a motor vehicle dealer whose license is revoked an extension period, up to 30 days beyond the otherwise effective date of the revocation, to sell the motor vehicles in the dealer’s possession at the time of the revocation, provided:

Trans 138.09(3)(b)1. 1. The dealer agrees to observe all special conditions imposed by the department.

Trans 138.09(3)(b)2. 2. The dealer’s request includes a list of all motor vehicles in the dealer’s possession including the vehicle identification number of each.

Trans 138.09(3)(b)3. 3. The dealer physically possesses the title certificate for each vehicle to be offered for sale.

Trans 138.09(3)(b)4. 4. The request is made prior to the effective date of the revocation.

Trans 138.09(3)(b)5. 5. The dealer does not offer, sell or lease with an option to purchase motor vehicles to retail buyers and does not buy any vehicles or accept motor vehicle trade-ins or consignments.

Trans 138.09(4) (4) Voluntary surrender. The department may permit a motor vehicle dealer up to 30 days to sell motor vehicles in the dealer’s possession at the time the dealer voluntarily surrenders his or her license, provided:

Trans 138.09(4)(a) (a) The dealer agrees to observe all special conditions imposed by the department.

Trans 138.09(4)(b) (b) The dealer provides the department a list of all motor vehicles in the dealer’s possession, including their vehicle identification numbers, within 7 days of the date when the license is received by the department.

Trans 138.09(4)(c) (c) The dealer physically possesses the title certificate for each vehicle to be offered for sale.

Trans 138.09(4)(d) (d) The dealer does not offer, sell, or lease with an option to purchase vehicles to retail buyers and may not buy any vehicles, or accept motor vehicle trade-ins or consignments, during the 30-day period.

Trans 138.09(4)(e) (e) The 30-day period begins on the date the department receives the license or the list of vehicles in the dealer’s possession, whichever is later.

Trans 138.09 History History: Cr. Register, June, 1991, No. 426, eff. 7-1-91; am. (2) (c) and (d) 5., Register, January, 1996, No. 481, eff. 2-1-96; CR 22-048: am. (1), (2) (b) (intro.), (d) 2., (3) (b) 2., (4) (b) Register July 2023 No. 811, eff. 8-1-23.