dealer and salesperson licensees shall furnish retail purchasers with a copy of
a document clearly entitled "Motor Vehicle Purchase Contract" that clearly
notifies the prospective retail purchaser on its face that the purchaser is
making an offer to purchase that shall become a binding motor vehicle purchase
contract if accepted by the dealer licensee, that the dealer licensee shall
accept or reject the offer within 2 working hours or the offer is automatically
voided and that the offer or may rescind the offer unless and until accepted by
the dealer licensee. Until acceptance or rejection of the offer, the licensee
shall be prohibited from selling the vehicle to any other party.
An exact copy of the motor vehicle offer
to purchase shall be provided to the purchaser at the time the offer is signed
by the purchaser except in the case where the offer has not left the presence
of the purchaser and is accepted by the dealer in the presence of the
purchaser. In addition, whenever a motor vehicle offer to purchase is signed
and accepted by a dealer, becoming a binding motor vehicle purchase contract,
an exact copy of the purchase contract shall be provided to the purchaser. Any
changes to the offer to purchase after signing by the purchaser, or to the
purchase contract subsequent to dealer acceptance, shall be made in one of the
1. All parties shall
notate and initial all copies of the original documents.
A motor vehicle dealer shall prepare a
replacement contract indicating that it replaces the original contract
documents. The motor vehicle dealer shall retain the original contract
documents in the manner required by s.
. Making material
changes to the replacement contract without direct oral disclosure of those
changes to the purchaser is an unfair sales practice.
(b) A motor vehicle offer to purchase or
purchase contract shall be executed whenever the dealer licensee accepts a down
payment, deposit or title for trade-in unit from a prospective retail
FACE REQUIREMENTS. A contract or offer to purchase shall, on its face:
(a) Clearly identify the names and addresses
of the dealer licensee and purchaser.
(b) Describe both the motor vehicle purchased
and the trade-in vehicle by year, make, model, identification number and
specify whether the purchased vehicle is new, used, or executive or
(c) State the date
and time each necessary signature is affixed.
(d) Include the salesperson's name and
license number in an area other than where signed by the purchaser and dealer
or authorized representative.
Specify an anticipated delivery date on the face of the contract and state
further in bold face type next to the anticipated delivery date that:
"REGARDLESS OF REASON, IF THE VEHICLE ORDERED BY THE PURCHASER IS NOT AVAILABLE
FOR DELIVERY WITHIN 15 CALENDAR DAYS AFTER ANTICIPATED DELIVERY DATE, THE
PURCHASER MAY CANCEL THIS ORDER AND SHALL WITHIN ONE BUSINESS DAY, RECEIVE A
FULL REFUND OF ANY DOWN PAYMENT AND RETURN OF TRADE-IN VEHICLE, OR TITLE FOR
TRADE-IN VEHICLE, OR BOTH. IF THE TRADE-IN IS NOT AVAILABLE, THE PURCHASER
SHALL RECEIVE THE TRADE-IN ALLOWANCE. UNLESS DELIVERY DATE IS OTHERWISE
QUALIFIED ON THE PURCHASE CONTRACT BY THE PURCHASER, IF THE ORDERED VEHICLE
BECOMES AVAILABLE FOR DELIVERY PRIOR TO THE STATED ANTICIPATED DELIVERY DATE,
THE DEALER LICENSEE MAY REQUIRE ACCEPTANCE NOT LESS THAN 21 CALENDAR DAYS AFTER
HAVING NOTIFIED THE PURCHASER OF AVAILABILITY OF DELIVERY AND MAY SUBSEQUENTLY
VOID THE CONTRACT IF THE PURCHASER REFUSES TO TAKE DELIVERY, IN WHICH CASE NO
PENALTY SHALL BE ASSESSED BY THE DEALER LICENSEE FOR NON-ACCEPTANCE OF DELIVERY
PRIOR TO THE STATED ANTICIPATED DELIVERY DATE." Notification of availability of
delivery and penalty for non-acceptance by the dealer licensee to the purchaser
shall be by registered or certified mail, return receipt required.
Reference all warranties and service
contracts in the following language:
Check aplicable boxes. Refer to separate document for cover
ages and exclusions
a motor vehicle dealer proposes to use any language in the purchase contract
that differs from that shown in par. (f), the dealer shall submit the proposed
language to the department. The department shall respond to the dealer within
30 days of receiving the proposed language as to whether the dealer may use the
proposed language. The dealer may not modify the proposed language prior to
receiving approval from the department to use the proposed language.
State the price due on acceptance of
delivery of the vehicle and contain an itemized calculation of the price. The
itemized calculation of the price shall state the manufacturer's suggested
retail price, if the vehicle is a new vehicle, or the price stated on the
Wisconsin Buyer's Guide, if the vehicle is a used vehicle, and all additional
charges, mark-ups, mark downs, discounts or other adjustments made to arrive at
the price due upon acceptance of delivery, including where applicable, but not
limited to, delivery charges, sales tax, license and title fees, down-payment,
owned trade-in allowance, positive or negative leased trade-in allowance and
estimated or actual pay-off amount, or estimated or actual lease buy-out amount
as permitted under sub. (8g) for any loan secured by a trade-in vehicle.
Rebates shall be referenced separately by dollar amount and assignment. The
itemized calculation of the vehicle's price shall be made on the face of the
purchase contract, except that the components of the total manufacturer's
suggested retail price may be provided by reference to the vehicle's window
label or in an attachment to the purchase contract. The use of an attachment
does not alter dealer's responsibility to comply with s.
. The purchaser is not
required to sign the dealer's attachment to the purchase contract.
(i) Immediately above the contract signature
block, make specific reference to any penalty which may be assessed to the
purchaser for non-acceptance of the vehicle. The penalty may not exceed 5% of
the cash price as provided by s.
Clearly state financing
contingencies in the manner provided in s.
. If the purchaser is unable to obtain
acceptable financing, the purchaser may cancel or rescind the contract and
shall, within one business day, receive a full refund of any down-payment, and
return of trade-in vehicle, or title for trade-in vehicle, or both, and no
penalty shall be assessed. If the trade-in vehicle is not available, the
purchaser shall receive the trade-in allowance.
(jm) Include any disclosure required under
(jr) If the purchase
offer is for a vehicle for which the motor vehicle dealer has already executed
a purchase contract, the purchase offer shall clearly state that that purchase
offer is contingent on the prior executed purchase contract not being
completed. Such a contingent purchase offer shall also provide that the
purchaser may rescind the offer at any time prior to being notified by the
dealer that the prior executed purchase contract was not completed and that the
contingency has been removed from the purchaser's contingent purchase offer. If
the purchase contract is rescinded or the prior executed purchase contract
completed, any downpayment or trade-in shall be returned within one business
(k) Specify all other
separately negotiated conditions of sale not stated elsewhere on the
(3) RETURN OF
DEPOSIT MONIES OR TRADE-IN TITLE. Any down payment, deposit, or title shall be
returned to the prospective retail purchaser within 2 working hours from the
time the offer to purchase was made if the offer to purchase is not accepted by
the dealer licensee. If the prospective purchaser is not present or available
during the 2 hour period, those items shall be returned in person or mailed
during the following business day.
MOTOR VEHICLE PRICE PROTECTION. A motor
vehicle manufacturer, importer or distributor which accepts dealer orders
placed on behalf of private retail purchasers shall furnish dealer licensees
with price lists upon which retail motor vehicle purchase contracts may be
executed. Price lists shall set forth the base prices of the various models
along with the prices of all optional equipment, accessories and destination or
transportation charges. The prices set forth in the price lists shall remain in
effect until receipt by the dealer licensees of written official price change
notification which shall contain the specific dollar amounts of increases or
revised prices applicable to the various models, optional equipment,
accessories and destination or transportation charges.
(a) Price increases imposed by these motor
vehicle manufacturers, importers or distributors, are prohibited on those
vehicles for which dealers had orders written with private retail purchasers
prior to the dealer's receipt of the written official price change
(b) A motor vehicle
purchase contract signed by a private retail purchaser and accepted by a dealer
licensee shall constitute evidence of an existing order written with a private
increases in instances cited in sub. (5) (b) and (c) 1. shall not be subject to
the provisions of this subsection.
MOTOR VEHICLE PRICE CHANGES. A motor
vehicle manufacturer, importer or distributor which has adopted a formal policy
of not accepting dealer orders placed on behalf of private retail purchasers
shall notify franchised dealer licensees and the department of that fact in
writing. If the policy is not clearly set forth to franchised dealer licensees,
price increases imposed by the motor vehicle manufacturer, importer or
distributor are prohibited on those vehicles for which dealers had orders
written with private retail purchasers prior to the dealer's receipt of the
official price change notification referred to in sub. (4).
(a) In the event of motor vehicle
manufacturer, importer or distributor price reduction the amount of any
reduction received by a dealer licensee shall be passed on to the private
retail purchaser by the dealer if the retail price was negotiated on the basis
of the previous higher price to the dealer.
Price increases in the following
instances shall not be subject to the price protection and price change
provisions of sub. (4) and this subsection:
1. The addition of new equipment as required
by state or federal law.
2. In the
case of foreign make vehicles, revaluation of the U.S. dollar by the U.S.
3. Local, state or
federal tax changes.
Any increase in price to a retail purchaser after the dealer has accepted an
offer to purchase from the purchaser is an unfair practice and prohibited
except as follows:
Motor vehicle dealer
licensees who accept offers to purchase from private retail purchasers for new
vehicles not yet in the dealer's inventory shall, in the following statement to
be completed on the purchase contract, check box A where the manufacturer,
importer or distributor has a formal policy of not accepting retail orders as
described in this subsection, or where the manufacturer's suggested retail
price of an ordered vehicle of the upcoming model year is unknown; or check box
B where the manufacturer's suggested retail price is unknown as in the case of
a newly introduced model: *
Order-out vehicle not price protected.
(Check A or B)
year price known. If the manufacturer's suggested retail price increases before
vehicle delivery, the final cash price shall be the current contract cash
price, plus the increase in the manufacturer's suggested retail price adjusted
by _________% discount or _________% markup of said increase.
Price of newly introduced
model currently unknown. The final cash price shall be the total of the
manufacturer's suggested retail price upon delivery plus the price of any
dealer installed options set forth in this contract with _________% discount
subtracted from or _________% markup added to the total.
However, if the final cash price of either A or B exceeds, the
purchaser may cancel the contract without penalty. Also the dealer is not
obligated to deliver unless the purchaser agrees to pay the final cash
trade-in vehicle may be reappraised if it suffers damage as defined by s.
, or parts or accessories
have been removed after purchase contract execution. Reappraisal by the dealer
licensee shall be limited to an amount equal to the retail repair costs of
damages incurred, or to the value of parts or accessories removed. Reappraisal
for mileage/kilometers is not allowed unless the dealer has stated on the
contract that "The appraisal is based on an odometer reading of up to ________
miles/kilometers, and the trade-in vehicle may be reappraised if it exceeds
(6) DAMAGE DISCLOSURE. On any new vehicle or
demonstrator or executive vehicle, any corrected damage exceeding 6% of the
manufacturer's suggested retail price, as measured by retail repair costs, and
all uncorrected damage shall be disclosed in writing to the purchaser prior to
delivery. Damage to glass, tires, bumpers, moldings or audio equipment is
excluded from the 6% rule when replaced by identical manufacturer's original
AT DELIVERY. If a motor vehicle dealer enters into a purchase contract to sell
a new vehicle as defined in s.
that is not available at
the dealers' location, the dealer shall provide the purchaser with an estimate
of vehicle mileage at delivery. The purchase contract shall be cancelable at
purchaser's option if the mileage of the vehicle upon delivery exceeds the
dealer's estimate. This option ends upon acceptance of delivery. Once
acceptance of the vehicle occurs, any purchaser's rights to cancel the purchase
contract on the basis of excess mileage over dealer's good faith estimate are
waived. The purchase contract shall state in bold face type the following: IF
THE MOTOR VEHICLE DEALER AND PURCHASER ENTER INTO A PURCHASE CONTRACT FOR A NEW
MOTOR VEHICLE NOT AVAILABLE AT THE DEALER'S LOT, THE DEALER AND PURCHASER AGREE
THAT THE VEHICLE MILEAGE UPON DELIVERY WILL NOT EXCEED _____ [LESS THAN]motor
vehicle dealer fills in estimated mileage[GREATER THAN] MILES. BEFORE VEHICLE
DELIVERY, PURCHASER HAS THE RIGHT TO CANCEL THE PURCHASE CONTRACT IF THE
MILEAGE OF THE VEHICLE EXCEEDS THAT AMOUNT.
(7) ORDER LIMITATIONS. It is an unfair
practice and prohibited for a dealer licensee to execute a purchase contract
for a vehicle or type of motor vehicle unless the dealer licensee reasonably
expects to have the ordered vehicle available for delivery by the anticipated
(a) A dealer may assess a purchaser or lessee
an additional service fee for completing any sales-related or lease-related
vehicle inspection or forms which are required by law or rule if the dealer has
made full disclosure of the service fee to the prospective retail customer. The
service fee may not be increased after this disclosure but may be reduced.
Dealers that choose to charge a purchaser or lessee a service fee shall include
the following disclosure on the purchase or lease contract: "A service fee is
not required by law, but may be charged to motor vehicle purchasers or lessees
for services related to compliance with state and federal laws, verifications
and public safety, and must be reasonable." Upon request from a purchaser, the
selling dealer shall provide a written disclosure of the services included in
this service fee. The Department reserves the right to audit fees to determine
whether they are reasonable.
dealer licensee who has contracted with the department in accordance with the
provisions of s.
Stats., may charge a purchaser a fee in the amount contained in the contract
for the dealer's services relating to the processing or distribution of an
original or renewal registration or a certificate of title.
(8g) ESTIMATED TRADE-IN LIEN
PAYOFF AMOUNTS. When the payoff for a trade-in vehicle is unknown, the dealer
may estimate the payoff in the itemization of vehicle price required under sub.
(2) (g). Where such an estimate is used, the purchase contract shall provide
that the purchaser may rescind the purchase contract if the actual amount
needed to pay off all extensions of credit secured by the motor vehicle exceeds
the estimated payoff amount used in the itemized calculation of vehicle price
by more than 1 payment on the note secured by the trade-in vehicle. The actual
difference between the estimated payoff and actual payoff shall be disclosed by
the dealer to the purchaser in writing. A purchaser's refusal to accept
delivery of a vehicle or agree in writing to waive the payoff difference within
7 days of notification by the dealer that contract contingencies have been met
and disclosure of the payoff difference shall rescind the purchase contract.
Adjusting the contract price to reflect an actual loan payoff amount is not
bushing if the dealer complies with the requirements of this
(a) The existence of a manufacturer's or
other rebate on a vehicle is a material item in determining the price of the
vehicle. A purchase contract shall provide that if, for any reason, a purchaser
does not qualify for a rebate that is referenced in the purchase contract as
required by sub. (2) (g), the purchaser may rescind the purchase contract
unless the dealer discounts the purchase price of the vehicle by the amount of
the rebate. If a purchaser does not qualify for a rebate and the dealer will
not provide a discount in the amount of the rebate, the dealer shall notify the
purchaser in writing of the fact that the purchaser does not qualify for the
rebate and notify the purchaser that the contract shall be rescinded unless
purchaser, within 7 days, signs a new purchase contract for the vehicle for the
new higher contract price. A purchaser's refusal, within 7 days of receiving
written notification, to execute a new purchase contract rescinds the original
contract. Purchaser's execution of a new contract after disclosure of the fact
that purchaser did not qualify for a rebate waives purchaser's objections
related to the rebate.
Delivering a motor vehicle to the purchaser without disclosing in writing that
the purchaser does not qualify for the rebate in the manner required under par.
(a) is "bushing" under sub. (5) (c) unless the dealer provides a discount to
the purchaser for the amount of the rebate and delivers the vehicle at the
original contract price.
(c) If a
manufacturer rebate not referenced in a purchase contract becomes available
based on the delivery date of a vehicle, and a retail purchaser qualifies for
the rebate at the time of delivery, the rebate shall be awarded to the
purchaser and the contract shall be amended accordingly as provided in sub. (1)
(a). For purposes of this section, "manufacturer rebate" means a rebate
provided by the vehicle manufacturer directly to the purchaser, including when
assigned to the motor vehicle dealer, and does not include manufacturer rebates
or wholesale incentives to the dealer or manufacturer discounts from the
wholesale price to the dealer.
(9) WAIVER. The use of a motor vehicle
purchase contract which requires the purchaser to waive any claims the
purchaser may have for breach of contract by the licensee is an unfair practice
DISCLOSURES. The motor vehicle purchase contract shall clearly state "Contact
the selling motor vehicle dealer to discuss any questions or problems about
your vehicle or this contract. If you are unable to resolve any disputes with
the dealer, you may contact: Division of Motor Vehicles, Dealer Section,
Wisconsin Department of Transportation, P.O. Box 7909, Madison, Wisconsin
53707. The Dealer Section licenses motor vehicle dealers and administers the
administrative regulations governing consumer protection in vehicle sale
transactions, Ch. Trans 139, Wis. Admin. Code."
CONTRACT PROHIBITED. A purchase contract
for a used motor vehicle may not be executed with the retail purchaser until
the vehicle has been inspected and findings disclosed as required by s.
139.04(4) and (5)
inspection is required under s.
(11m) CONTINGENT PURCHASE CONTRACTS. A motor
vehicle dealer who has a signed purchase contract to sell a particular vehicle
with a purchaser that is subject to satisfaction of a purchaser's contingency
before the purchase contract becomes final may accept purchase offers for that
vehicle subordinate to that of the purchaser. Any such subordinate purchase
offer shall include the disclosures required by sub. (2) (jr).
(12) ORDER CHANGES. A dealer licensee shall
notify a retail purchaser of any information changing the order or delivery of
a vehicle, such as a change in options, equipment, price, or anticipated
assembly and delivery date. Notification shall be within 3 business days from
the date the dealer receives the information.
Wis. Admin. Code Department of Transportation § Trans 139.05
Cr. Register, March, 1973,
No. 207, eff. 4-1-73; am. (1), (3) (e) and (4); r. and recr. (6); cr. (9),
Register, June, 1974, No. 222, eff. 7-1-74; am. (7), r. (8), renum. (9) to be
(8) and am., cr. (9), Register, April, 1977, No. 256, eff. 5-1-77; renum. from
MVD 24.04 and am., Register, December, 1982, No. 324, eff. 1-1-83; emerg. am.
(5) (c) 1., eff. 7-22-83; am. (5) (c) 1., Register, May, 1985, No. 353, eff.
6-1-85; renum. (8) to be (8) (a) and am., cr. (8) (b), Register, January, 1997,
No. 493, eff. 2-1-97; r. and recr. (2) (f), am. (10) (intro.) and (a), r. (10)
(b) to (d), Register, May, 1997, No. 497, eff. 9-1-97; CR 02-028: am. (2) (g)
and (8) (a), Register July 2002 No. 559, eff. 8-1-02; correction in (2) (i)
made under s. 13.93(2m) (b) 7, Stats., Register July 2002 No. 559; CR 99-135:
am. (1) (a), (2) (f), (i), (j), (5) (b) 3., (6), (10) and (11), cr. (1) (a) 1.,
2., (2) (jm), (jr), (6m), (8g), (8r) and (11m), r. and recr. (2) (g) Register
February 2004 No. 578, eff. 3-1-04; CR 08-029: cr. (2) (fm) Register August
2008 No. 632, eff. 9-1-08.