THEMOTOR VEHICLE NEWSLETTER
2003ISSUE 1
Diane Legreide, Director of the Division of Motor Vehicles and Deputy DirectorShawn Sheekey recently visited NJ CAR’s Motor Vehicle facility. The Motor Vehicle Operation, which is the largest Agency in the State, consists of the Dealer Agency, Online Registration Systems Operation (CVR and triVIN) and NJCAR Title Services Operation.
The Director went out of her way to praise the Agency as a model of public/private partnership; a successful working example of the kind of relationships the Division wants to create as part of its FIX DMV strategy. She specifically commented on, and congratulated, NJCAR for its work, and told employees that they should be proud of their latest “perfect audit,” which was conducted by the State Internal Audit staff. The Director noted that few, if any, private agencies have posted such results, while NJCAR just received its third perfect audit report. That’s a credit to Sue Sbarro, Director of the Motor Vehicle Operations, her staff and all dealerships using this service. Through your efforts in complying with the ever-changing DMV rules and procedures, you have helped NJCAR attain these audit results.
Sue Sbarro, Manager of the NJCAR Motor Vehicle Operations, which includes the Dealer Agency, Online Registration Systems (CVR and triVIN) and the NJCAR Title Services Operation, has recently been promoted to the position of Director, Motor Vehicle Operations.
NJCAR Motor Vehicle Operations has grown dramatically since its inception in 1993. Today, the NJCAR Dealer Agency is the largest motor vehicle Agency in the State. Combined production of the Agency and Online Operations now exceeds one million transactions annually with a staff of 50 full- and part-time employees. Almost 500 NewJersey new car and truck retailers utilize one or more facets of the NJCAR Motor Vehicle Operations. It is a credit to Sue and her staff that this operation has been so successful, and is viewed by NJCAR members as one of the most important services provided by the Coalition. Senior Officials at the Division of Motor Vehicles also view the NJCAR Motor Vehicle Operations as a successful public/private partnership.
Sue is married with two children and resides in Hamilton, NewJersey. She has worked for NJCAR since the inception of the Dealer Agency in 1993. During her tenure with NJCAR, Sue has filled various positions and was ultimately promoted to Manager in 1998. Since being appointed as Manager, Sue has been responsible for improving efficiencies and streamlining each facet of the NJCAR Motor Vehicle Operations while, at the same time, maintaining the high standards of accuracy and performance required by the State. Since Sue has been in the position of Manager, the Dealer Agency has received two “no-exception” audits by the Internal Audit Unit of the Division of Motor Vehicles.
Sue’s promotion is well deserved and NJCAR is happy to make this announcement.
A previous issue of TitleWave contained an extensive article regarding the proper issuance of dealer temporaries. One importantrequirement that is often overlooked is that a dealership must sell a vehicle in order to “temp” it. A dealership cannot issue a “temp” to a vehicle that is not sold by that dealership. If your dealership delivers “Courtesy” vehicles, you CANNOT issue a “temp.” In addition, you cannot issue a “temp” on an “import” (from a foreign country) vehicle. Be sure to inform your F&I and sales staff that they cannot issue a “temp” tag on Courtesy or Import vehicles.
Improper issuance of “dealer temps” may lead to a suspension of a dealership’s privilege to issue “temps,” which would halt spot deliveries and virtually cripple sales.
Dealerships are also required to maintain a log of all “temps” issued. It is advisable to periodically review your dealership’s inventory of “temps” to be certain there are no stolen or lost “temps.”
It is also advisable to review the dealership’s practice of issuing “temps,” maintaining the DMV required logs, and the security measures in place to avoid missing “temps” from your inventory.
In order to apply for a duplicate New Jersey title, the following items must be submitted:
- APPLICATION FOR DUPLICATE CERTIFICATE OF OWNERSHIP Form ISM/SS-53. This form must be completed with all appropriate information, including the original signature of the titled owner or a person with Power of Attorney for the owner.
- One of the following documents must be submitted along with the ISM/SS-53: copy of the current or expired registration card, current insurance card, or declaration page from the current insurance policy. DMV requires one of these documents in order to link the name of the titled owner and the Vehicle Identification Number (VIN).
- A letter from the titled owner of the vehicle giving permission to the dealership to apply for a duplicate title. This letter must specifically indicate the year, make, model and VIN of the vehicle. Since the dealership is requesting the duplicate title on behalf of their customer, DMV still requires a letter even if the owner signs the application. If it is a business requesting the duplicate title, the request must be on the business’ letterhead. A sample letter is included for you to re-type on your dealership letterhead.
- If there is a lien on the vehicle, you must include either a lien release or letter of permission from the lien holder to allow you to apply for a duplicate title. Whether using a “lien release” or a letter of permission from the lien holder, it must include the year, make, model and VIN of the vehicle, and it must be signed by the lien holder.
Please note: The above documents must be on the lien holder’s letterhead. Their letterhead must include the name, address and phone number. The letter should also include the contact person for the lien holder.
NOTE: DMV will not allow a duplicate title to be issued if the request is made less than 30days from the date the original title was issued. The New Jersey Motor Vehicle computer system will notallow this transaction to be processed.
Yes, you can surrender New Jersey License Plates at the Dealer Agency. NJ CAR’s courier, AADI, will be happy to pick them up and bring them to the Dealer Agency.
Please note:The plates must be in a sealed box with the dealership’s name clearly indicated on the outside of the box.
If the box does not indicate the dealership’s name, the courier cannot accept responsibility for them. Also include an inventory of the plates contained in the box.
Dealer Plates cannot be surrendered at a Motor Vehicle Agency. Please include a cover note explaining why the plates are being returned. These plates must be sent directly to:
Division of Motor Vehicles
Business License Compliance Unit
225 East State Street, 4th Floor
Trenton, NJ 08666
Though great care is taken to avoid errors, mistakes can happen at any Motor Vehicle Agency. It may help to understand the flow of paperwork that, at times, inhibits the correction process:
When a transaction is processed at an Agency, the supporting documents submitted with the original transaction are shipped out of the Agency to DMV’s Central Office in Trenton within two days. The documents are usually available for “look-ups” by DMV personnel one week to approximately three weeks after the documents were originally processed. After that time, the documents are moved to another location for microfilming and are not available for a minimum of three months.
To expedite the correction process, upon receipt, please check your completed work thoroughly and notify the Agency immediately of errors. Submitting a title for correction quickly may expedite the waiting period by weeks in some circumstances.
When submitting a Correction Application [Form MVS-2 (R8/95)], please note the following “tips” that will expedite the correction process.
Attach a Power of Attorney if someone other than the owner of the vehicle is signing the Vehicle Correction Application.
Highlight the item(s) to be corrected.
Indicate “Agency Error” if applicable. Agency Error applies when your dealership correctly completed the paperwork but an error was made by an MVS Agency Typist.
Indicate “Dealer Error,” if applicable. A Dealer Error applies when your dealership made an error on the paperwork that was submitted to MVS.
Dealerships processing their MV work through an online system should indicate whether the back of the MCO was completed, or if the electronic assignment form was generated. If the MCO was completed, determine whether the information was completed correctly or incorrectly. This information determines the method of correcting “online” transactions.
NJ CAR is aware that one of the most frustrating types of errors your dealership may encounter is an “owner correction.” If an incorrect owner has been titled to a vehicle, the appropriate correction process can only be determined by examining the paperwork leading to the error. In order to determine which correction method applies, please note the following:
Was the original MCO or title paperwork completed and submitted showing the correct owner’s name?
If yes, the problem occurred solely due to a data entry error on the part of the Agency processing this transaction. It is correctable by submitting the newly issued title, a correction form and copies of the supporting documentation (if available) to the NJ CAR Dealer Agency. Dealerships processing transactions through the “online” system must be certain that the system-generated assignment form was not attached to the supporting documents previously sent to NJ CAR’s Online Systems Operation. If it was a data entry error on the part of the online user, you must also submit a check for the appropriate Motor Vehicle fees.
If the answer to the above question is “no,” ownership may be correctable at the Database Corrections Unit if a copy of the original contract, predating the title issue date, is available. In this scenario, contact NJCAR Title Services staff for a detailed packet of instructions.
These ownership correction options apply whether the vehicle is new or used.
New Jersey new car owners will get a four-year reprieve from NewJersey inspections. New Jersey taxpayers will save an estimated $85 million over the next five years under a renegotiated contract between the State and Parsons Infrastructure & Technology, its contracted auto inspector. The biggest savings will come from the extension of the new car exemption, which will cut an estimated 500,000 inspections each year from the Parson’s workload, resulting in a yearly savings of almost $14 million.
New vehicles purchased on or after January 1, 2001 that are still owned by the original purchaser—which originally would have been due for inspection 2003—will be exempt from NewJersey inspection for an additional two years. The Division of Motor Vehicles will be sending extension stickers to those individuals over the next several weeks. This “extension”only applies to new vehicles that were purchased on or after January 1, 2001 that are still owned by the original purchaser.
For new vehicles sold by New Jersey dealerships on or after January 1, 2003, a four-year exemption new car inspection decal will be issued.
Again, any new vehicles purchased on or after January 1, 2003, will receive a four-year new car inspection sticker—exempting the vehicle from inspection until 2007.
DMV has begun circulating a new series of titles. The “Z” series will include all the security features that were present on past New Jersey titles. This series, however, will differ in a few subtle ways.
Information printed in the border surrounding the title is in block format. Also, “Hold to the Light to View Watermark” appears vertically on both sides of the border. The reverse side of the title will have some minor changes. A new line has been added below the Driver License Number. This line is to be used for entering the Sales Tax Exemption number. Also, below the current lines used to record the Sales Price and Date of Sale, is a new line for entering the amount of Sales Tax Paid.
The green Sales Tax Cards (LS-240) will be discontinued. Once the new titles are in circulation, the LS-240 Form will not be needed. Any entity registered with the Division of Taxation and currently using a “Sales Tax Satisfied Stamp” (such as new car dealerships) will continue to affix their sales tax stamp to title documents.
Casual or Courtesy transactions must now use the area indicated on the new titles to record the sales tax information. Each NewJersey Motor Vehicle Agency will have a generic tax stamp to use for the “older” NewJersey titles submitted as Casual or Courtesy deals.
For dealerships not using the Dealer Agency, the individual will be asked to sign the stamped document at the Agency. For those dealerships using the Dealer Agency, please continue to record the information on the LS-240 and NJCAR staff will stamp the title and transfer the information.
Starting December 1, 2002, there was an increase in a variety of registration fees. Dealerships who have a copy of the NJ CAR Motor Vehicle Training & Reference Manual were sent updated fee charts.
Code 11 and Code 15 vehicles are registered at a minimum of 5,000 pounds (GVW). The total registered weight should include the weight of the vehicle and the load it will carry.
Code 11 – Commercial Vehicles
Minimum Fee * / $95 / Maximum Fee * / $1,257.505,001 to 10,000 / $11.50 for each 1,000 lbs. over 5,000
10,001 to 18000 / $13.50 for each 1,000 lbs. over 5,000
18,001 to 50,000 / $14.50 for each 1,000 lbs. over 5,000
Over 50,000 / $15.50 for each 1,000 lbs. over 5,000
* Gross Vehicle Weight
Code 15 – Passenger Vehicles at Commercial Rates
Minimum Fee * / $77.50 / Maximum Fee * / $1,240.005,001 to 10,000 / $11.50 for each 1,000 lbs. over 5,000
10,001 to 18,000 / $13.50 for each 1,000 lbs. over 5,000
18,001 to 50,000 / $14.50 for each 1,000 lbs. over 5,000
Over 50,000 / $15.50 for each 1,000 lbs. over 5,000
*Gross Vehicle Weight
The following Registration Codes have also been increased:
Reg. Code 24 / Commercial MotorcycleReg. Code 31 / Farm Truck
Reg. Code 32 / Light/Medium Duty Tow Trucks
Reg. Code 33 / Heavy Duty Tow Trucks
Reg. Code 99 / Farm Labor Transport
New Registration Code 16 – Aggregate Vehicles
Recent legislation has established a new Commercial Vehicle Code (Code 16). Vehicles that will be used for hauling aggregate, including ready mix concrete, asphalt, stone and gravel are to be registered under Code 16, a discounted registration rate. If a vehicle is now eligible for a Code 16 rate, the code can be changed at renewal time at a local Motor Vehicle Agency. To initially register a vehicle for Code 16, you must complete the standard Registration Application (BA-49) and enter “16” in the space provided for Vehicle Code. The following fees apply to Code 16 Commercial Vehicles.
Minimum Fee * / $95 / Maximum Fee * / $1,107.505,001 to 10,000 / $11.50 for each 1,000 lbs. over 5,000
$12.50 for each 1,000 lbs. over 5,000
$13.50 for each 1,000 lbs. over 5,000
18,001 to 50,000
Over 50,000
* Gross Vehicle Weight
Increased Boat Registration Fees
New Legislation has established higher fees on all initial and renewal boat registrations. All fees have been doubled and are as follows:
Reg. Code 81 / <16 feet / = $1216 feet but < 26 feet / = $28
26 feet but < 40 feet / = $52
40 feet but < 65 feet / = $80
> 65 feet / = $250
Registration fees for the following codes will be increased as listed above plus $1.
Reg. Code 82 / Boat LiveryReg. Code 84 / Boat Manufacturer
Reg. Code 85 / Boat Commercial
Beginning December 3, 2003, the cost for a set of dealer plates has increased from $121 to $123.50. This fee will apply to any additional plates ordered after December 3, 2002, as well as for the renewal fee for your license.
Dealer Plate Renewal Procedure Changed
DMV began mailing renewal applications in early January for all Motor Vehicle licenses that will renew April 1, 2003. NJ CAR mailed all Lemon Law Bonds at the same time in January when DMV mailed the renewal notices to all new car dealerships.
Please note an important change: DMV now requires Garage Liability insurance carriers to issue a Certificate of Insurance listing DMV as the certificate holder. Your insurance company must also indicate the total number of plates, or the total number of sets of dealer plates, your dealership currently has insured with them on the Certificate of Insurance.
Please be sure the certificate holder (DMV) is listed exactly as follows:
Division of Motor Vehicles
Business License Compliance Unit
P.O. Box 171
Trenton, NJ 08666
NJ CAR will be notifying most of the insurance companies and agents that provide coverage to new car dealerships to give them a “heads up” on this new DMV procedure. Please request this Certificate of Insurance from your insurance company and send it to DMV along with the renewal application, Lemon Law Bond and the appropriate fees. The fees have increased to $123.50 per set of five dealer plates.
If the above documentation is not included with your renewal application, DMV will not process the application, which will delay the issuance of your license.
Now, before the renewal of your license, is the time for dealerships to do a complete inventory of your current dealer plates to verify you have the correct number on hand. DMV’s Business License Compliance Unit has requested that dealerships first do an in-house inventory and fax that list to them along with a copy of their current wall license. DMV will then compare their records to your list and return the information to you by fax. Please fax your plate listing along with your wall license to: