Trans 139.04(5)(a)(a) Dealer and salespersons shall inform prospective retail purchasers of used motor vehicles in writing before purchase contract execution, in the manner and on the form prescribed in sub.
(6). This disclosure shall include whether or not the condition of a vehicle for sale is such that it can be legally operated at all times in accordance with ch.
347, Stats., and ch.
Trans 305. Disclosure of information shall be that which the dealer can find using reasonable care.
Trans 139.04(5)(b)
(b) If a vehicle is inoperable in such a manner as to make compliance impossible to determine, or if the dealer licensee does not correct all defects which prohibit its legal operation prior to delivery of the vehicle to a retail purchaser, the dealer and salesperson licensee shall:
Trans 139.04(5)(b)1.
1. Make the following disclosure conspicuously on the face of the motor vehicle purchase contract prior to its execution:
“WARNING!
This vehicle cannot be legally operated on Wisconsin highways and may not be safe."
Trans 139.04(5)(b)2.
2. Specify for the retail purchaser the defects which are in violation of ch.
347, Stats., and ch.
Trans 305 as prescribed in sub.
(4) and in this subsection.
Trans 139.04(5)(c)
(c) If because of the condition of the vehicle at the time of sale it meets the definition of a junk vehicle or a salvage vehicle, the dealer and salespersons shall make one of the following disclosures conspicuously on the motor vehicle purchase contract prior to its execution:
Trans 139.04(5)(c)1.
1. If the vehicle is a junk vehicle: “WARNING! Sold as junk vehicle. This vehicle may never be retitled." The dealer shall notate the title as “Junk Vehicle" and forward the title to the department within 10 days after determining that the vehicle is a junk vehicle.
Trans 139.04(5)(c)2.
2. If the vehicle is a salvage vehicle and sold with a salvage title: “WARNING! This is a salvage vehicle and cannot be registered for use on Wisconsin highways until it passes an authorized inspection which requires payment of a fee. Title will be issued with a rebuilt salvage brand."
Trans 139.04 Note
Note: A vehicle previously titled in another jurisdiction as junked, or a substantially similar term as used in that jurisdiction, may not be titled or registered in Wisconsin. s.
Trans 149.10 (3).
Trans 139.04 Note
The Department may not issue a certificate of title for a vehicle if the certificate of title for the vehicle was inscribed by a person other than a state with the word “JUNKED" or any other notation clearly indicating that the vehicle was junked unless the owner provides an affidavit stating that the inscription on the title was entered in error and the vehicle passes an inspection under s.
Trans 149.05. The Department may refuse to issue a title for such a vehicle if it concludes that the vehicle was intended to be junked at the time the title was noted as junk. s.
Trans 149.09 (3).
Trans 139.04 Note
Note: Only licensed salvage dealers can sell junk vehicles or parts.
Trans 139.04(6)(a)(a) Except as provided in pars.
(c) and
(d), each used motor vehicle displayed or offered for sale by a dealer shall display a guide as prescribed by the department. The guide shall be prepared by an authorized employee of either the dealer, another dealer having the same majority ownership as the dealer, or a predecessor dealer at the same location as the dealer. The guide shall be completed in duplicate and contain the printed names of the vehicle inspector and the records inspector. The dealer or a salesperson, prior to separating the copy for display, shall sign the original guide. Except as provided in par.
(d), the copy shall be displayed within the vehicle, attached to a window if possible, shall be readable from the outside of the vehicle, and shall become the possession of the purchaser upon acceptance of delivery. The original shall be signed by the purchaser prior to delivery of the motor vehicle and shall be retained by the dealer for 5 years. The guide shall clearly state in simple and concise language:
Trans 139.04(6)(a)1.
1. That the vehicle is used. All material history, prior use and title brands shall be clearly and specifically disclosed, for example, rebuilt salvage, flood or water damaged, transferred to insurer upon payment of claim, manufacturer buyback, personal use, business use, lease use, rental use, demonstrator, executive, taxicab or public transportation, police vehicle, driver-education or government vehicle, or history and use unknown. All title brands that appear on the existing certificate of title for the vehicle or that will appear on the new certificate of title for the vehicle as required by s.
342.10, Stats., shall be disclosed. The title brand disclosures shall also include any other jurisdiction in which the vehicle has been previously titled. If the vehicle has not been previously titled in another jurisdiction, this disclosure shall specify Wisconsin. Disclosure of history and prior use is not limited to those conditions which require title branding. Required disclosure of the history, prior use and title brands is limited to that which the dealer could find using reasonable care.
Trans 139.04(6)(a)2.
2. The odometer reading at the time the vehicle was obtained by the dealer licensee and a disclosure that either the reading is known to be actual miles, or the reading is not the actual miles, or the reading reflects the amount of mileage in excess of the designed mechanical odometer limit, as corroborated by the prior owner's odometer disclosure statement available and subsequently shown to the purchaser, in accordance with sub.
(7). The window sticker or disclosure label shall further disclose that the name and address of the vehicle's prior owner are available upon request.
Trans 139.04(6)(a)3.
3. The vehicle price, model year, make, model, identification number, color, engine size, when determinable, for example, 350 cubic inches or 3.8 liter and number of cylinders, and type of transmission, for example, automatic or manual and number of forward gears, and drive type, for example, front wheel drive, rear wheel drive or 4-wheel drive.
Trans 139.04 Note
Note: When engine size is not determinable, insert “NA" on the Guide.
Vehicle Service Contract may be available for purchase. Ask for price, deductibles, coverages, exclusions and cancellability."
Trans 139.04(6)(a)4m.
4m. If a motor vehicle dealer proposes to use any language in the buyers guide that differs from that shown in subd.
4., the dealer shall submit the proposed language to the department. The department shall respond to the dealer within 30 days of receiving the proposed language as to whether the dealer may use the proposed language. The dealer may not modify the proposed language prior to receiving approval from the department to use the proposed language.
Trans 139.04(6)(a)5.
5. The inspection disclosures required in subs.
(4) and
(5). Unless otherwise agreed to in the purchase contract, the inspection disclosures shall neither create any warranties, express or implied, nor affect warranty coverage provided for in the purchase contract. However, it is an unfair practice for a dealer to not remedy an item improperly reported on the guide that the dealer could have found using reasonable care if the buyer has notified the dealer within a reasonable time after the buyer discovered or should have discovered the improperly reported item and the vehicle is made available to the dealership. The dealer shall reasonably remedy or make a good faith effort to reasonably remedy an item improperly reported within 30 days of the buyer's notification.
Trans 139.04 Note
Note: The form prescribed by the Department is the Wisconsin Buyers Guide. A copy of this form is available, at no charge, from the Division of Motor Vehicles, Dealer Section, located in Madison, Wisconsin.
Trans 139.04(6)(b)
(b) The Wisconsin buyers guide required by par.
(a) shall also include the following information:
Trans 139.04(6)(b)1.
1. All equipment requirements as required by ch.
Trans 305 shall be maintained in proper working condition for the vehicle to be operated legally on Wisconsin highways.
Trans 139.04(6)(b)2.
2. Any important consumer information the department identifies as useful to the prospective purchaser, including the department's administrative code authority, address and phone number.
Trans 139.04(6)(b)3.
3. Written explanations of any detected problems reported in the general condition or equipment requirements areas.
Trans 139.04(6)(c)1.
1. A used motor vehicle prior to being displayed or offered for sale, providing a written statement “Not inspected for sale" is conspicuously displayed on each vehicle.
Trans 139.04(6)(c)2.
2. A demonstrator or executive vehicle until removed from executive or demonstrator service and displayed or offered for sale on the sales lot.
Trans 139.04(6)(c)3.
3. A used motor vehicle which is operated between point of wholesale or point of purchase and the licensee's business premises by the licensee or agent if a valid dealer registration plate is affixed to the vehicle.
Trans 139.04(6)(c)4.
4. A used motor vehicle with a gross vehicle weight rating of more than 16,000 pounds or a motor vehicle which is or has in the past been registered in Wisconsin or another jurisdiction at a gross weight exceeding 16,000 pounds. This exclusion does not apply to motor homes.
Trans 139.04(6)(c)5.
5. A junk vehicle with a written statement, “This is a junk vehicle", conspicuously displayed.
Trans 139.04(6)(c)6.
6. An unrepaired salvage vehicle with a written statement, “This is a salvage vehicle", conspicuously displayed.
Trans 139.04(6)(c)7.
7. A vehicle being sold to a lessee of the vehicle or the lessee's agent or employee who operated the vehicle while under lease.
Trans 139.04(6)(d)
(d) The written disclosures required by pars.
(a) and
(b) are not required to be posted on a motorcycle. The motorcycle dealer may, at its option, display Wisconsin Buyer's Guides on motorcycles and may employ mechanisms to protect them from weather. A Wisconsin Buyer's Guide for a motorcycle that is not displayed on the vehicle shall be maintained by the dealer and provided upon request to any person who requests to see the label or who makes an offer to purchase the vehicle. The dealer or salesperson shall show or provide a copy of the Wisconsin Buyer's Guide to a person who desires to make an offer to purchase the vehicle before the dealer drafts the purchase offer and before the person delivers an offer to the dealer. The label shall become the possession of the purchaser upon acceptance of delivery.
Trans 139.04(7)
(7)
Mileage disclosure. Unless exempted from the odometer disclosure statement requirements under s.
Trans 154.05, for every motor vehicle offered for sale by a dealer licensee, the dealer licensee shall:
Trans 139.04(7)(a)
(a) Establish and maintain for 5 years those mileage and odometer disclosure records specified in s.
Trans 154.12. The records shall be maintained and made available in a manner prescribed under s.
Trans 154.12.
Trans 139.04(7)(b)
(b) Show to each prospective purchaser, prior to sale, all odometer disclosure records or true and legible copies of such records relating to a vehicle since last titled, including the current title and all prior owner odometer disclosure statements.
Trans 139.04 Note
Note: A dealer may show a prospective buyer a copy of both sides of a title document instead of the original if the prospective buyer is shown the original document when requested prior to execution of a purchase contract.
Trans 139.04(7)(c)
(c) Upon transfer of motor vehicle, disclose the odometer reading to the purchaser in a manner and form as prescribed under s.
Trans 154.04.
Trans 139.04(8)
(8)
Wholesale disclosure requirements. Sellers in wholesale transactions shall make the disclosures required in s.
Trans 139.04 (6) (a) 1. to wholesale purchasers of motor vehicles in writing before purchase.
Trans 139.04 Note
Note: Sellers include licensed wholesale auctions which are required to collect and pass along the information from the seller to the buyer. Wholesale auctions are responsible for disclosing vehicles owned by dealers, manufacturers or distributors in other jurisdictions.
Trans 139.04(9)
(9)
Manufacturer recalls. Before delivering to a retail purchaser any used vehicle of a line make for which the dealer holds a franchise, the dealer shall do all of the following that are applicable:
Trans 139.04(9)(a)
(a) Determine from the vehicle's manufacturer whether or not the vehicle is the subject of any unperformed manufacturer recalls.
Trans 139.04(9)(b)
(b) If the vehicle is the subject of any unperformed manufacturer recalls for which the manufacturer will reimburse the dealer for performing, perform all such recalls or agree in writing to perform such recalls at a time convenient to the customer not later than 20 days after delivery, unless the unavailability of parts or other circumstances beyond the control of the dealer prevents performance within that time.
Trans 139.04(9)(c)
(c) Disclose in writing to the purchaser any unperformed manufacturer recalls with regard to the vehicle that have been disclosed to the dealer upon inquiry of the manufacturer.
Trans 139.04 History
History: Cr.
Register, March, 1973, No. 207, eff. 4-1-73; r. and recr. (4) and (7); am. (6) (a) 2.,
Register, June 1974, No. 222, eff. 7-1-74; r. and recr. (5),
Register, June, 1974, No. 222, eff. 10-1-74; am. (4) (intro.), (4) (f), (5) (a) and (6) (a) 1., renum. (5) (b) to be (5) (c), cr. (5) (b), am. (6) (a) 1., renum. (6) (c) to be (6) (d) and am., cr. (6) (c), renum. (7) to be (8) and cr. (7),
Register, April, 1977, No. 256, eff. 5-1-77; renum. from MVD 24.03 and am.,
Register, December, 1982, No. 324, eff. 1-1-83; am. (6) (a) (intro.),
Register, October, 1983, No. 334, eff. 11-1-83; am. (5) (b), (6) (b) and (c) 3., r. (5) (c), renum. (5) (d) to be (5) (c),
Register, May, 1985, No. 353, eff. 6-1-85; am. (6) (a) 4. and (b),
Register, May, 1986, No. 365, eff. 6-1-86; am. (6) (a) (intro.) and 2., r. and recr. (7),
Register, January, 1996, No. 481, eff. 2-1-96; corrections in (5) made under s. 13.93 (2m) (b) 7., Stats.,
Register, August, 1996, No. 488; am. (1) (b), (4), (5) (a), (b) 2., (6) (a) (intro.), 1., 3. and (7) (b), r. and recr. (5) (c), (6) (a) 4. and (b), r. (6) (a) 5., renum. (6) (a) 6. to be (6) (a) 5. and am., cr. (6) (c) 4. to 7., (8) and (9),
Register, May, 1997, No. 497, eff. 9-1-97;
CR 02-028: am. (3) (b),
Register July 2002 No. 559, eff. 8-1-02; correction in (2) (b) made under s. 13.93 (2m) (b) 7., Stats.,
Register July 2002 No. 559;
CR 99-135: am. (4), (6) (a) (intro.) and (c) (intro.), cr. (6) (d)
Register February 2004 No. 578, eff. 3-1-04;
CR 08-029: cr. (6) (a) 4m.
Register August 2008 No. 632, eff. 9-1-08.
Trans 139.05(1)(1)
Usage. All dealer and salesperson licensees shall furnish retail purchasers with a copy of a document clearly entitled “Motor Vehicle Purchase Contract" that clearly notifies the prospective retail purchaser on its face that the purchaser is making an offer to purchase that shall become a binding motor vehicle purchase contract if accepted by the dealer licensee, that the dealer licensee shall accept or reject the offer within 2 working hours or the offer is automatically voided and that the offeror may rescind the offer unless and until accepted by the dealer licensee. Until acceptance or rejection of the offer, the licensee shall be prohibited from selling the vehicle to any other party.
Trans 139.05(1)(a)
(a) An exact copy of the motor vehicle offer to purchase shall be provided to the purchaser at the time the offer is signed by the purchaser except in the case where the offer has not left the presence of the purchaser and is accepted by the dealer in the presence of the purchaser. In addition, whenever a motor vehicle offer to purchase is signed and accepted by a dealer, becoming a binding motor vehicle purchase contract, an exact copy of the purchase contract shall be provided to the purchaser. Any changes to the offer to purchase after signing by the purchaser, or to the purchase contract subsequent to dealer acceptance, shall be made in one of the following manners:
Trans 139.05(1)(a)2.
2. A motor vehicle dealer shall prepare a replacement contract indicating that it replaces the original contract documents. The motor vehicle dealer shall retain the original contract documents in the manner required by s.
Trans 138.04 (1) (e). Making material changes to the replacement contract without direct oral disclosure of those changes to the purchaser is an unfair sales practice.
Trans 139.05(1)(b)
(b) A motor vehicle offer to purchase or purchase contract shall be executed whenever the dealer licensee accepts a down payment, deposit or title for trade-in unit from a prospective retail purchaser.
Trans 139.05(2)
(2)
Contract face requirements. A contract or offer to purchase shall, on its face:
Trans 139.05(2)(a)
(a) Clearly identify the names and addresses of the dealer licensee and purchaser.
Trans 139.05(2)(b)
(b) Describe both the motor vehicle purchased and the trade-in vehicle by year, make, model, identification number and specify whether the purchased vehicle is new, used, or executive or demonstrator.
Trans 139.05(2)(d)
(d) Include the salesperson's name and license number in an area other than where signed by the purchaser and dealer or authorized representative.
Trans 139.05(2)(e)
(e) Specify an anticipated delivery date on the face of the contract and state further in bold face type next to the anticipated delivery date that: “REGARDLESS OF REASON, IF THE VEHICLE ORDERED BY THE PURCHASER IS NOT AVAILABLE FOR DELIVERY WITHIN 15 CALENDAR DAYS AFTER ANTICIPATED DELIVERY DATE, THE PURCHASER MAY CANCEL THIS ORDER AND SHALL WITHIN ONE BUSINESS DAY, RECEIVE A FULL REFUND OF ANY DOWN PAYMENT AND RETURN OF TRADE-IN VEHICLE, OR TITLE FOR TRADE-IN VEHICLE, OR BOTH. IF THE TRADE-IN IS NOT AVAILABLE, THE PURCHASER SHALL RECEIVE THE TRADE-IN ALLOWANCE. UNLESS DELIVERY DATE IS OTHERWISE QUALIFIED ON THE PURCHASE CONTRACT BY THE PURCHASER, IF THE ORDERED VEHICLE BECOMES AVAILABLE FOR DELIVERY PRIOR TO THE STATED ANTICIPATED DELIVERY DATE, THE DEALER LICENSEE MAY REQUIRE ACCEPTANCE NOT LESS THAN 21 CALENDAR DAYS AFTER HAVING NOTIFIED THE PURCHASER OF AVAILABILITY OF DELIVERY AND MAY SUBSEQUENTLY VOID THE CONTRACT IF THE PURCHASER REFUSES TO TAKE DELIVERY, IN WHICH CASE NO PENALTY SHALL BE ASSESSED BY THE DEALER LICENSEE FOR NON-ACCEPTANCE OF DELIVERY PRIOR TO THE STATED ANTICIPATED DELIVERY DATE." Notification of availability of delivery and penalty for non-acceptance by the dealer licensee to the purchaser shall be by registered or certified mail, return receipt required.
Service Contract Information
⍽ Service Contract
Term: ____ (months) ____ (miles), whichever comes first.
Percent of retail repair costs to be paid by You: _____%
Deductible to be paid by You $ ______"
Trans 139.05(2)(fm)
(fm) If a motor vehicle dealer proposes to use any language in the purchase contract that differs from that shown in par.
(f), the dealer shall submit the proposed language to the department. The department shall respond to the dealer within 30 days of receiving the proposed language as to whether the dealer may use the proposed language. The dealer may not modify the proposed language prior to receiving approval from the department to use the proposed language.
Trans 139.05(2)(g)
(g) State the price due on acceptance of delivery of the vehicle and contain an itemized calculation of the price. The itemized calculation of the price shall state the manufacturer's suggested retail price, if the vehicle is a new vehicle, or the price stated on the Wisconsin Buyer's Guide, if the vehicle is a used vehicle, and all additional charges, mark-ups, mark downs, discounts or other adjustments made to arrive at the price due upon acceptance of delivery, including where applicable, but not limited to, delivery charges, sales tax, license and title fees, down-payment, owned trade-in allowance, positive or negative leased trade-in allowance and estimated or actual pay-off amount, or estimated or actual lease buy-out amount as permitted under sub.
(8g) for any loan secured by a trade-in vehicle. Rebates shall be referenced separately by dollar amount and assignment. The itemized calculation of the vehicle's price shall be made on the face of the purchase contract, except that the components of the total manufacturer's suggested retail price may be provided by reference to the vehicle's window label or in an attachment to the purchase contract. The use of an attachment does not alter dealer's responsibility to comply with s.
Trans 139.04 (2) (a). The purchaser is not required to sign the dealer's attachment to the purchase contract.
Trans 139.05(2)(i)
(i) Immediately above the contract signature block, make specific reference to any penalty which may be assessed to the purchaser for non-acceptance of the vehicle. The penalty may not exceed 5% of the cash price as provided by s.
218.0141, Stats.
Trans 139.05(2)(j)
(j) Clearly state financing contingencies in the manner provided in s.
Trans 139.055. If the purchaser is unable to obtain acceptable financing, the purchaser may cancel or rescind the contract and shall, within one business day, receive a full refund of any down-payment, and return of trade-in vehicle, or title for trade-in vehicle, or both, and no penalty shall be assessed. If the trade-in vehicle is not available, the purchaser shall receive the trade-in allowance.
Trans 139.05(2)(jr)
(jr) If the purchase offer is for a vehicle for which the motor vehicle dealer has already executed a purchase contract, the purchase offer shall clearly state that that purchase offer is contingent on the prior executed purchase contract not being completed. Such a contingent purchase offer shall also provide that the purchaser may rescind the offer at any time prior to being notified by the dealer that the prior executed purchase contract was not completed and that the contingency has been removed from the purchaser's contingent purchase offer. If the purchase contract is rescinded or the prior executed purchase contract completed, any downpayment or trade-in shall be returned within one business day.
Trans 139.05(2)(k)
(k) Specify all other separately negotiated conditions of sale not stated elsewhere on the contract.
Trans 139.05(3)
(3)
Return of deposit monies or trade-in title. Any down payment, deposit, or title shall be returned to the prospective retail purchaser within 2 working hours from the time the offer to purchase was made if the offer to purchase is not accepted by the dealer licensee. If the prospective purchaser is not present or available during the 2 hour period, those items shall be returned in person or mailed during the following business day.
Trans 139.05(4)
(4)
Motor vehicle price protection. A motor vehicle manufacturer, importer or distributor which accepts dealer orders placed on behalf of private retail purchasers shall furnish dealer licensees with price lists upon which retail motor vehicle purchase contracts may be executed. Price lists shall set forth the base prices of the various models along with the prices of all optional equipment, accessories and destination or transportation charges. The prices set forth in the price lists shall remain in effect until receipt by the dealer licensees of written official price change notification which shall contain the specific dollar amounts of increases or revised prices applicable to the various models, optional equipment, accessories and destination or transportation charges.
Trans 139.05(4)(a)
(a) Price increases imposed by these motor vehicle manufacturers, importers or distributors, are prohibited on those vehicles for which dealers had orders written with private retail purchasers prior to the dealer's receipt of the written official price change notification.
Trans 139.05(4)(b)
(b) A motor vehicle purchase contract signed by a private retail purchaser and accepted by a dealer licensee shall constitute evidence of an existing order written with a private retail purchaser.
Trans 139.05(5)
(5)
Motor vehicle price changes. A motor vehicle manufacturer, importer or distributor which has adopted a formal policy of not accepting dealer orders placed on behalf of private retail purchasers shall notify franchised dealer licensees and the department of that fact in writing. If the policy is not clearly set forth to franchised dealer licensees, price increases imposed by the motor vehicle manufacturer, importer or distributor are prohibited on those vehicles for which dealers had orders written with private retail purchasers prior to the dealer's receipt of the official price change notification referred to in sub.
(4).
Trans 139.05(5)(a)
(a) In the event of motor vehicle manufacturer, importer or distributor price reduction the amount of any reduction received by a dealer licensee shall be passed on to the private retail purchaser by the dealer if the retail price was negotiated on the basis of the previous higher price to the dealer.
Trans 139.05(5)(b)
(b) Price increases in the following instances shall not be subject to the price protection and price change provisions of sub.
(4) and this subsection:
Trans 139.05(5)(b)2.
2. In the case of foreign make vehicles, revaluation of the U.S. dollar by the U.S. government.
Trans 139.05(5)(c)
(c) Any increase in price to a retail purchaser after the dealer has accepted an offer to purchase from the purchaser is an unfair practice and prohibited except as follows:
Trans 139.05(5)(c)1.
1. Motor vehicle dealer licensees who accept offers to purchase from private retail purchasers for new vehicles not yet in the dealer's inventory shall, in the following statement to be completed on the purchase contract, check box A where the manufacturer, importer or distributor has a formal policy of not accepting retail orders as described in this subsection, or where the manufacturer's suggested retail price of an ordered vehicle of the upcoming model year is unknown; or check box B where the manufacturer's suggested retail price is unknown as in the case of a newly introduced model:
⍽ Order-out vehicle not price protected. (Check A or B)
A. ⍽ Current model year price known. If the manufacturer's suggested retail price increases before vehicle delivery, the final cash price shall be the current contract cash price, plus the increase in the manufacturer's suggested retail price adjusted by _________% discount or _________% markup of said increase.
B. ⍽ Price of newly introduced model currently unknown. The final cash price shall be the total of the manufacturer's suggested retail price upon delivery plus the price of any dealer installed options set forth in this contract with _________% discount subtracted from or _________% markup added to the total.
