Federal Information

The regulations from the Administration’s executive agencies touch every aspect of commerce, including car sales. Fortunately, we have resources to help you navigate Washington’s bureaucracy.

NADA Regulatory Affairs

Through our membership in the National Automobile Dealers Association, CADA provides updates and representation with:

  • The Federal Trade Commission
  • Department of Transportation
  • Department of Labor
  • Consumer Financial Protection Bureau

NADA resources include:

Auto Dealer Law

Auto Dealer Law provides you with a healthy dose of legal reality by identifying the legal traps that exist within the dealership, and within the dealership acquisition/divestiture process.

 

January 1, 2021

The National Highway Traffic Safety Administration 

issued a new rule, effective January 1, 2021, that changes odometer disclosure requirements when a vehicle is transferred. In response, the Colorado Department of Motor Vehicles must change procedures for title transfers of vehicles that are 10 years old or older, based on the model year.

 

NOTICES

January 1, 2021

The National Highway Traffic Safety Administration issued a new rule, effective today, that changes odometer disclosure requirements when a vehicle is transferred. In response, the Colorado Department of Motor Vehicles must change procedures for title transfers of vehicles that are 10 years old or older, based on the model year.

Beginning today, transferors and lessors are required to disclose the odometer reading for 2011model-year vehicles. DMV will be required to capture odometer readings for 2011 model-year vehicles until 2031.

Why did NHTSA change the 10-year exemption?

NHTSA changed the rule because motor vehicles are on the road longer and retaining more value. The average age of motor vehicles on the road is now almost 12 years. As more vehicles last beyond 10 years and become exempt from the odometer disclosure rule, the risk of odometer fraud goes up.

Who is affected by the rule change?

This rule affects all transfers of vehicles conducted through a licensed dealer, a private sale, a court-mandated transfer or other legally required transfer or any other method. This rule affects anyone buying, selling or transferring a motor vehicle—even if acting as an agent or under a power of attorney—when dealing with a 2011-model-year or newer vehicle.

Among others, this rule affects the following parties:

  • Motor vehicle owners and lessors
  • County Tag Offices
  • Dealers (franchise and independent) and their professional associations
  • Vendors and software providers
  • Banks, financial institutions, other lien holders and their professional associations
  • Auctions • Insurance companies and their professional associations

What model year vehicles are affected?

The new 20-year odometer capture requirements apply only to vehicles that are 2011 model year or newer. Vehicles manufactured with a 2010 model year or older remain exempt under the 10-year exemption and will remain exempt under the new 20-year rule.

When does the rule change take effect?

Beginning January 1, 2021, MVD and County Tag Offices must continue capturing odometer disclosure information for model year 2011 and later vehicles.

How will other model year vehicles be treated in the future?

We will apply the 20-year capture requirement on a rolling basis year by year, adding an additional model year each January until we are capturing odometer disclosures on transfers of all motor vehicles less than 20 years old. The table below shows the application of the new requirements.

How does this affect vehicles exempt from odometer disclosure due to weight?

Self-propelled vehicles weighing more than 16,000 pounds will remain exempt from odometer disclosure requirements. In general, vehicles currently exempt from odometer disclosure under the Federal Truth in Mileage Act or state statutes based on an exemption other than age will remain exempt.

What if I receive a 2011-model-year vehicle in 2021 or later and the face of the out-of-state title lists the vehicle’s odometer as “exempt”?

Some states’ statutes will prohibit them from implementing the new federal rule in 2021. As such, the Georgia Department of Revenue will accept and carry forward the “exempt” statement shown on the out-of-state title.

If I purchase a 2011-model-year vehicle in 2020 but do not register the vehicle until 2021, will odometer disclosure be required? Yes. While the new rule was not in effect at the time of sale, the vehicle itself was not exempt from odometer disclosure at the time of transfer. May a dealer still attach a bill of sale to the title for an exempt vehicle, instead of showing the transfer on the title? Yes. Dealers can continue this practice when the vehicle is exempt from odometer disclosure requirements. However, starting January 1, 2021, vehicles with a model year of 2011 or newer will require odometer disclosure, and in these cases a bill of sale is not sufficient. In these cases, the transfer of ownership must be completed on the certificate of title or a secure dealer reassignment form.