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DMV Will Allow Dealers to Move to a Temporary Construction Location

This article is a reminder that the DMV has procedures in place to allow dealers to relocate temporarily during a road construction project. The DMV Policy Statement is number BVS-99-12 and it is re-typed below..

Policy Statement
Dealer Section, Department of Transportation

Number BVS 99-12
Dealers 99-05-02
Supercedes 92-05-08

Authorized By
Martha Gertsch, Director, Bureau of Vehicle Services
Charles Supple, Chief, Dealer Section

Date 5/20/99

Policy

The department will accept an application for a "temporary construction location" during a road construction project at a dealership's main licensed location. The department will waive the indoor display requirement and not charge any fees for a temporary construction location. The temporary construction location may remain in effect for the duration of a road construction project. In order for the department to approve an application for a temporary construction location, the following conditions must be met:

  • An application for an amended license is filed, including zoning and local permit approvals for the temporary construction location.
  • If the temporary construction location isn't owned by the dealership, a copy of the lease is included with the application.
  • If new vehicles are to be sold from the temporary construction location, the manufacturer must give written permissions (in the form of a manufacturer certificate of appointment or letter) for the dealer to do so.

Once the temporary construction location is approved, the department will:

  • Issue new license certificates listing both the main location and temporary construction location (and identifying the temporary construction location as such)
  • Upon notice from the dealership that the construction project is complete, drop the construction location and reissue the license certificate for the main location.

Reasons for Policy

Road construction projects often have serious impacts on businesses when their customers can't conveniently get to them. The department's position is to minimize the negative effects construction projects can have on a dealership. Previous solutions such as temporarily closing the dealership blocked by construction and relocating it, or adding a branch or sublot in the same municipality and operating from there, don't always meet the needs of the dealership community. The temporary construction location will better serve dealers' needs for longer term construction projects than the alternative of holding off-premise sales during construction. Off-premise sales are limited to six per year of no more than ten days' duration each (or a maximum if 60 days). In effect, the department is waiving the maximum 60 days of off-premise sales in exchange for having zoning and manufacturer approval for the temporary construction location. Because the temporary construction location is approved and listed on the dealer's license, sales conducted there will not be treated as off-premise sales and customers will not need to be provided with a three-day-right-to cancel.

Authority for Policy

Interpretation of Trans 138.03 relating to dealer business facilities and 138.08 relating to temporary sales locations.

 

 

 

 

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