Vehicle Industry Registration Procedures Manual

When a repossessed vehicle is sold through a dealer conducting a wholesale motor vehicle auction, the renewal penalties due may be waived if all fees due are paid within 60 days of the last auction date.

In case of multiple wholesale motor vehicle auctions, a subsequent auction restarts the 60 days, as long as the repossessed vehicle stays within a legal owner/dealer/wholesale motor vehicle auction cycle (even if one of the dealers is out of state). The penalty waiver may be applied through the final wholesale auction date, if paid within 60 days of the last auction.

If the vehicle is sold to a retail customer during the legal owner/dealer/wholesale motor vehicle auction cycle, and the vehicle goes back to a wholesale motor vehicle auction (such as, due to an unwind), the renewal fees must be paid within 60 days of the last auction date before that retail sale to avoid penalties.

In addition to the procedures listed in Basic Transfer Requirements section in this chapter, the following must be submitted:

• A Certificate of Repossession (REG 119) form.
• Repossession and transfer fees, if the repossessor is not the registered owner.
• The dealer requesting a renewal penalty waiver must submit a Statement of Facts (REG 256) form which states the following:
  • The dealer is requesting a renewal fee penalty waiver.
  • The vehicle is a repossessed vehicle.
  • The repossessed vehicle is sold through a dealer conducting a wholesale motor vehicle auction.
  • The date of the last wholesale motor vehicle auction and that all renewal fees due have been paid with within 60 days of the last wholesale motor vehicle auction date.

  On leased vehicles, the lessor is the registered owner so the vehicle returns to the lessor if the lessee default on payments. The lessor’s release is required on the title to transfer ownership. A repossession fee is not due if the repossessed leased vehicle is subsequently leased to another lessee by the lessor.

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