(1) DEALERS. Except
as provided in sub. (2), any person engaging wholly or partly in the business
of selling motor vehicles or exchanging, buying, leasing, providing services
aiding the sale of motor vehicles, offering or attempting to negotiate a sale
or exchange of an interest in motor vehicles, whether or not such vehicles are
owned by such person, without first obtaining and maintaining a valid license
under ss.
218.0101 to
218.0163, Stats., violates s.
218.0114, Stats.
Note: Examples of motor vehicle dealers include
businesses that sell vehicles from their own inventories, persons who sell
vehicles on consignment, and "buying clubs" or others who negotiate terms of
sale in behalf of consumers or dealers, such as a membership organization which
arranges special discounts for its members with dealers. Arranging such
discounts constitutes "offering or attempting to negotiate a sale or exchange
of an interest in motor vehicles for compensation," which is part of the
statutory definition of a dealer. "Compensation" includes increasing the value
of membership or affiliation with a club or association.
(2) EXEMPTIONS. The following persons are not
required to hold a motor vehicle dealer license and, except as provided in this
subsection, are exempt from the provisions of this chapter and ss.
218.0101 to
218.0163, Stats.
(a)
Express statutory
exclusions. Any person described in s.
218.0101(23)
(b), Stats.
(b)
Limited private sales.
Any person who sells or who offers or attempts to negotiate a sale of 5 or
fewer used motor vehicles during a 12 month period, provided that the vehicles
are privately titled to that person.
(c)
Auxiliary business
services. A person who provides services to prospective sellers or
buyers which aid the sale of motor vehicles if and only if the service
provider's compensation is determined prior to, and is completely independent
of, the sale of any motor vehicle.
Note: This exemption is primarily intended to
allow advertising companies, newspapers, magazine publishers, property lessors,
and others to provide their usual business services to dealers without having
to be licensed as dealers themselves, even though their services or activities
may encourage or facilitate vehicle sales.
(d)
Retail disposal of vehicles by
business fleet owners. A corporation, firm, association, partnership,
or other business that sells its own used motor vehicles to retail buyers,
provided that all of the vehicles are privately titled to the seller; and that
all the vehicle sales are incidental.
Note: This exemption allows fleet owners to sell
off their surplus property to retail customers without getting a dealer
license. It does not apply, however, to companies which lease, rent or
manufacture motor vehicles since their vehicles are not privately
titled.
(e)
Wholesale disposal of vehicles by business fleet owner. A
corporation, firm, association, partnership, or other business that sells its
own used motor vehicles, provided that all sales are made to licensed motor
vehicle, wholesale, motor vehicle auction, or salvage dealers; and that all
vehicle sales are incidental.
(f)
Exempt auction services. A retail auctioneer in compliance
with s.
Trans
138.028.
(g)
Licensed wholesalers. A
wholesaler in compliance with s.
Trans
138.027.
(h)
Licensed salespersons. A
motor vehicle salesperson licensed in accordance with s.
218.0114(1),
Stats., and acting within the scope of the salesperson's employment with a
licensed dealer.
