Ill. Admin. Code tit. 92, § 1020.15 - Buy Here, Pay Here Dealers
a) For
the purposes of this Section, a Buy Here, Pay Here used vehicle dealer (BHPH)
means any entity that engages in the business of selling or leasing of
vehicles and finances the sale or purchase price of the vehicle to a customer
without the customer using a third-party lender (IVC Sec. 5-102.8(a)).
This is done by using a financial institution in which the BHPH has an
ownership stake. By contrast, the third-party lenders used by non-BHPH dealers
licensed under the IVC are not legally or financially associated with the
BHPH.
b) A BHPH shall only be
required to acquire one license under IVC Section 5-102.8, which would permit
the BHPH to sell and/or lease 5 or more used vehicles per year.
c) A BHPH may have a separate legal entity,
in which the owner of the dealership has an interest, that provides financing
solely for customers of the BHPH. A BHPH may sell a vehicle for cash or by
other traditional financing methods. However, the promotion, advertisement,
solicitation, and general engagement in the sales transactions performed by the
BHPH and its associated financing entity must reflect that the customer may
purchase the vehicle on a payment plan basis, within a specified period of
time, from the associated financing entity in which the BHPH has a financial
stake.
d) Each BHPH is required to
submit the appropriate certificate of title and registration fees and taxes to
the Secretary of State (SOS) and the Department of Revenue, respectively, for
each sales or lease transaction, with the application for certificate of title
and registration reflecting the date of purchase the customer agreed to the
terms of the sale or lease and took possession of the vehicle, regardless of
how the sale was financed or the vehicle was transferred to the
customer.
e) Beginning January 1,
2020, all BHPH must electronically submit titling and registration applications
to SOS, either through an ERT program or online through the SOS website:
cyberdriveillinois.com/departments/vehicles/title_and_registration/pert.html.
Notes
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