MYTH: Demos used by dealership employees on dealer tags are not available for sale, and we don’t have to display the Monroney label or the FTC Buyers Guide on the car.
THE TRUTH: Three strikes and you are out with this myth. Proper labeling is required.
We have seen “creative” solutions to the labeling requirements of Federal law that post a notice in a demo window that the vehicle is not for sale and any information on the vehicle can be obtained at the dealership. Here are three reasons this does not work.
D-TAGS. Virginia law prohibits dealers from using dealer tags on any vehicles other than those held in inventory for sale or resale. If your demos are being operated on D-tags, the vehicles are for sale or the use of the D-tags is prohibited.
MONRONEY LABELS. The Automobile Information Disclosure Act, or the Monroney Act as it is commonly known, requires a sticker to be placed on a new vehicle prior to sale indicating the sticker price and other relevant information. These stickers are supplied by the manufacturer for all new vehicles. The Monroney label cannot be removed or altered prior to the first retail sale.
USED CAR BUYERS GUIDES. The FTC Buyers Guides must be affixed on every used motor vehicle available for retail sale. A used motor vehicle is one that has been titled, or is a demonstrator, or has been driven more than 100 miles in excess of mileage accumulated in delivery of the vehicle to the dealership. The Buyers Guide must be displayed prominently and conspicuously in any location on a vehicle and in such a fashion that both sides are readily readable. You may remove the form temporarily from the vehicle during any test drive, but you must return it as soon as the test drive is over. If desired, the Buyers Guide may be displayed in a removable clear plastic sleeve that holds the Buyers Guide against the side of the window.
Make sure your demonstrators are properly labeled and your dealer tags are being used appropriately.