Wis. Admin. Code Department of Transportation Trans 139.04 - Disclosure of the condition of the motor vehicle

(1) MODEL YEAR DESIGNATION.

(a) Changing the model year of a motor vehicle is an unfair practice and prohibited. If no model year is designated, the year of manufacture applies.

(b) Both the chassis model year when determinable and the finished vehicle model year shall be stated on the Wisconsin buyers guide and the motor vehicle purchase contract if the model year of a motor vehicle chassis is different than the model year of the finished vehicle, as designated by the converter-manufacturer or final stage manufacturer under the provisions of s. Trans 137.06(5) (a).

(2) NEW MOTOR VEHICLE DISCLOSURE.

(a) The dealer and salesperson licensees shall disclose to the prospective purchaser of any new motor vehicle when any parts, equipment or accessories originally installed have been removed or replaced by a dealer licensee prior to sale, if the replacement items are not of equal quality, and shall disclose all dealer installed options or accessories and whether or not warranted. The disclosures shall be in writing on the face of the motor vehicle purchase contract as required by s. Trans 139.05(2) (f) and (h).

(b) Prior to delivery of a new motor vehicle, the dealer licensee shall furnish to the purchaser a copy of the predelivery test and inspection report made pursuant to the manufacturer's specifications filed under s. 218.0116(1) (km), Stats. The manufacturer shall file with the department a copy of any amended delivery and preparation obligations of its dealers at least 30 days prior to adoption of changes.

(3) NEW MOTOR VEHICLE WINDOW STICKER AND DEALER SUPPLEMENTAL PRICE LABEL.

(a) Manufacturer's suggested retail price labels shall remain affixed to motor vehicles as required by federal law, until sold and delivered to the ultimate purchaser.

(b) Any additions to or deletions from items contained on the label in par. (a) shall be identified by both description and retail price on a dealer supplemental price label affixed to the motor vehicle in a clear and conspicuous location. Items to be disclosed on dealer supplemental labels include, but are not limited to, dealer installed optional equipment or accessories, products or services performed by the dealer beyond the manufacturer's presale delivery obligations, a service fee as allowed by s. Trans 139.05(8) (a), and final dealer asking price.

(4) USED MOTOR VEHICLE GENERAL CONDITION DISCLOSURE. Dealer and salespersons shall inform prospective retail purchasers of used motor vehicles in writing before purchase contract execution, in the manner and on the form prescribed in sub. (6). This disclosure shall include all significant existing mechanical, electrical and electronic defects and damage and evidence of repair to strut tower, trunk floor pan, frame or structural portion of unibody, including corrective welds. Disclosure of information shall be that which the licensee can find using reasonable care.

(5) USED MOTOR VEHICLE EQUIPMENT REQUIREMENTS AND DISCLOSURE.

(a) Dealer and salespersons shall inform prospective retail purchasers of used motor vehicles in writing before purchase contract execution, in the manner and on the form prescribed in sub. (6). This disclosure shall include whether or not the condition of a vehicle for sale is such that it can be legally operated at all times in accordance with ch. 347, Stats., and ch. Trans 305. Disclosure of information shall be that which the dealer can find using reasonable care.

(b) If a vehicle is inoperable in such a manner as to make compliance impossible to determine, or if the dealer licensee does not correct all defects which prohibit its legal operation prior to delivery of the vehicle to a retail purchaser, the dealer and salesperson licensee shall:

1. Make the following disclosure conspicuously on the face of the motor vehicle purchase contract prior to its execution:

"WARNING!

This vehicle cannot be legally operated on Wisconsin highways and may not be safe."

2. Specify for the retail purchaser the defects which are in violation of ch. 347, Stats., and ch. Trans 305 as prescribed in sub. (4) and in this subsection.

(c) If because of the condition of the vehicle at the time of sale it meets the definition of a junk vehicle or a salvage vehicle, the dealer and salespersons shall make one of the following disclosures conspicuously on the motor vehicle purchase contract prior to its execution:

1. If the vehicle is a junk vehicle: "WARNING! Sold as junk vehicle. This vehicle may never be retitled." The dealer shall notate the title as "Junk Vehicle" and forward the title to the department within 10 days after determining that the vehicle is a junk vehicle.

2. If the vehicle is a salvage vehicle and sold with a salvage title: "WARNING! This is a salvage vehicle and cannot be registered for use on Wisconsin highways until it passes an authorized inspection which requires payment of a fee. Title will be issued with a rebuilt salvage brand."

Note: A vehicle previously titled in another jurisdiction as junked, or a substantially similar term as used in that jurisdiction, may not be titled or registered in Wisconsin. s. Trans 149.10(3).

The Department may not issue a certificate of title for a vehicle if the certificate of title for the vehicle was inscribed by a person other than a state with the word "JUNKED" or any other notation clearly indicating that the vehicle was junked unless the owner provides an affidavit stating that the inscription on the title was entered in error and the vehicle passes an inspection under s. Trans 149.05. The Department may refuse to issue a title for such a vehicle if it concludes that the vehicle was intended to be junked at the time the title was noted as junk. s. Trans 149.09(3).

Note: Only licensed salvage dealers can sell junk vehicles or parts.

(6) WISCONSIN BUYERS GUIDE.

(a) Except as provided in pars. (c) and (d), each used motor vehicle displayed or offered for sale by a dealer shall display a guide as prescribed by the department. The guide shall be prepared by an authorized employee of either the dealer, another dealer having the same majority ownership as the dealer, or a predecessor dealer at the same location as the dealer. The guide shall be completed in duplicate and contain the printed names of the vehicle inspector and the records inspector. The dealer or a salesperson, prior to separating the copy for display, shall sign the original guide. Except as provided in par. (d), the copy shall be displayed within the vehicle, attached to a window if possible, shall be readable from the outside of the vehicle, and shall become the possession of the purchaser upon acceptance of delivery. The original shall be signed by the purchaser prior to delivery of the motor vehicle and shall be retained by the dealer for 5 years. The guide shall clearly state in simple and concise language:

1. That the vehicle is used. All material history, prior use and title brands shall be clearly and specifically disclosed, for example, rebuilt salvage, flood or water damaged, transferred to insurer upon payment of claim, manufacturer buyback, personal use, business use, lease use, rental use, demonstrator, executive, taxicab or public transportation, police vehicle, driver-education or government vehicle, or history and use unknown. All title brands that appear on the existing certificate of title for the vehicle or that will appear on the new certificate of title for the vehicle as required by s. 342.10, Stats., shall be disclosed. The title brand disclosures shall also include any other jurisdiction in which the vehicle has been previously titled. If the vehicle has not been previously titled in another jurisdiction, this disclosure shall specify Wisconsin. Disclosure of history and prior use is not limited to those conditions which require title branding. Required disclosure of the history, prior use and title brands is limited to that which the dealer could find using reasonable care.

2. The odometer reading at the time the vehicle was obtained by the dealer licensee and a disclosure that either the reading is known to be actual miles, or the reading is not the actual miles, or the reading reflects the amount of mileage in excess of the designed mechanical odometer limit, as corroborated by the prior owner's odometer disclosure statement available and subsequently shown to the purchaser, in accordance with sub. (7). The window sticker or disclosure label shall further disclose that the name and address of the vehicle's prior owner are available upon request.

3. The vehicle price, model year, make, model, identification number, color, engine size, when determinable, for example, 350 cubic inches or 3.8 liter and number of cylinders, and type of transmission, for example, automatic or manual and number of forward gears, and drive type, for example, front wheel drive, rear wheel drive or 4-wheel drive.

Note: When engine size is not determinable, insert "NA" on the Guide.

4. The availability or existence of dealer warranties, manufacturer warranties and service contracts in the following language:

"WARRANTY

IMPORTANT: Ask for all promises in writing. Spoken promises are difficult to enforce. Warranty terms may be negotiable. Terms agreed to on the purchase contract are final

See Image

See Image

Vehicle Service Contract may be available for purchase. Ask for price, deductibles, coverages, exclusions and cancellability."

4m. If a motor vehicle dealer proposes to use any language in the buyers guide that differs from that shown in subd. 4., 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.

5. The inspection disclosures required in subs. (4) and (5). Unless otherwise agreed to in the purchase contract, the inspection disclosures shall neither create any warranties, express or implied, nor affect warranty coverage provided for in the purchase contract. However, it is an unfair practice for a dealer to not remedy an item improperly reported on the guide that the dealer could have found using reasonable care if the buyer has notified the dealer within a reasonable time after the buyer discovered or should have discovered the improperly reported item and the vehicle is made available to the dealership. The dealer shall reasonably remedy or make a good faith effort to reasonably remedy an item improperly reported within 30 days of the buyer's notification.

Note: The form prescribed by the Department is the Wisconsin Buyers Guide. A copy of this form is available, at no charge, from the Division of Motor Vehicles, Dealer Section, located in Madison, Wisconsin.

(b) The Wisconsin buyers guide required by par. (a) shall also include the following information:

1. All equipment requirements as required by ch. Trans 305 shall be maintained in proper working condition for the vehicle to be operated legally on Wisconsin highways.

2. Any important consumer information the department identifies as useful to the prospective purchaser, including the department's administrative code authority, address and phone number.

3. Written explanations of any detected problems reported in the general condition or equipment requirements areas.

(c) The written disclosures required by pars. (a) and (b) do not apply to:

1. A used motor vehicle prior to being displayed or offered for sale, providing a written statement "Not inspected for sale" is conspicuously displayed on each vehicle.

2. A demonstrator or executive vehicle until removed from executive or demonstrator service and displayed or offered for sale on the sales lot.

3. A used motor vehicle which is operated between point of wholesale or point of purchase and the licensee's business premises by the licensee or agent if a valid dealer registration plate is affixed to the vehicle.

4. A used motor vehicle with a gross vehicle weight rating of more than 16,000 pounds or a motor vehicle which is or has in the past been registered in Wisconsin or another jurisdiction at a gross weight exceeding 16,000 pounds. This exclusion does not apply to motor homes.

5. A junk vehicle with a written statement, "This is a junk vehicle", conspicuously displayed.

6. An unrepaired salvage vehicle with a written statement, "This is a salvage vehicle", conspicuously displayed.

7. A vehicle being sold to a lessee of the vehicle or the lessee's agent or employee who operated the vehicle while under lease.

(d) The written disclosures required by pars. (a) and (b) are not required to be posted on a motorcycle. The motorcycle dealer may, at its option, display Wisconsin Buyer's Guides on motorcycles and may employ mechanisms to protect them from weather. A Wisconsin Buyer's Guide for a motorcycle that is not displayed on the vehicle shall be maintained by the dealer and provided upon request to any person who requests to see the label or who makes an offer to purchase the vehicle. The dealer or salesperson shall show or provide a copy of the Wisconsin Buyer's Guide to a person who desires to make an offer to purchase the vehicle before the dealer drafts the purchase offer and before the person delivers an offer to the dealer. The label shall become the possession of the purchaser upon acceptance of delivery.

(7) MILEAGE DISCLOSURE. Unless exempted from the odometer disclosure statement requirements under s. Trans 154.05, for every motor vehicle offered for sale by a dealer licensee, the dealer licensee shall:

(a) Establish and maintain for 5 years those mileage and odometer disclosure records specified in s. Trans 154.12. The records shall be maintained and made available in a manner prescribed under s. Trans 154.12.

(b) Show to each prospective purchaser, prior to sale, all odometer disclosure records or true and legible copies of such records relating to a vehicle since last titled, including the current title and all prior owner odometer disclosure statements.

Note: A dealer may show a prospective buyer a copy of both sides of a title document instead of the original if the prospective buyer is shown the original document when requested prior to execution of a purchase contract.

(c) Upon transfer of motor vehicle, disclose the odometer reading to the purchaser in a manner and form as prescribed under s. Trans 154.04.

(8) WHOLESALE DISCLOSURE REQUIREMENTS. Sellers in wholesale transactions shall make the disclosures required in s. Trans 139.04(6) (a) 1. to wholesale purchasers of motor vehicles in writing before purchase.

Note: Sellers include licensed wholesale auctions which are required to collect and pass along the information from the seller to the buyer. Wholesale auctions are responsible for disclosing vehicles owned by dealers, manufacturers or distributors in other jurisdictions.

(9) MANUFACTURER RECALLS. Before delivering to a retail purchaser any used vehicle of a line make for which the dealer holds a franchise, the dealer shall do all of the following that are applicable:

(a) Determine from the vehicle's manufacturer whether or not the vehicle is the subject of any unperformed manufacturer recalls.

(b) If the vehicle is the subject of any unperformed manufacturer recalls for which the manufacturer will reimburse the dealer for performing, perform all such recalls or agree in writing to perform such recalls at a time convenient to the customer not later than 20 days after delivery, unless the unavailability of parts or other circumstances beyond the control of the dealer prevents performance within that time.

(c) Disclose in writing to the purchaser any unperformed manufacturer recalls with regard to the vehicle that have been disclosed to the dealer upon inquiry of the manufacturer.

Notes

Wis. Admin. Code Department of Transportation Trans 139.04

Cr. Register, March, 1973, No. 207, eff. 4-1-73; r. and recr. (4) and (7); am. (6) (a) 2., Register, June 1974, No. 222, eff. 7-1-74; r. and recr. (5), Register, June, 1974, No. 222, eff. 10-1-74; am. (4) (intro.), (4) (f), (5) (a) and (6) (a) 1., renum. (5) (b) to be (5) (c), cr. (5) (b), am. (6) (a) 1., renum. (6) (c) to be (6) (d) and am., cr. (6) (c), renum. (7) to be (8) and cr. (7), Register, April, 1977, No. 256, eff. 5-1-77; renum. from MVD 24.03 and am., Register, December, 1982, No. 324, eff. 1-1-83; am. (6) (a) (intro.), Register, October, 1983, No. 334, eff. 11-1-83; am. (5) (b), (6) (b) and (c) 3., r. (5) (c), renum. (5) (d) to be (5) (c), Register, May, 1985, No. 353, eff. 6-1-85; am. (6) (a) 4. and (b), Register, May, 1986, No. 365, eff. 6-1-86; am. (6) (a) (intro.) and 2., r. and recr. (7), Register, January, 1996, No. 481, eff. 2-1-96; corrections in (5) made under s. 13.93(2m) (b) 7, Stats., Register, August, 1996, No. 488; am. (1) (b), (4), (5) (a), (b) 2., (6) (a) (intro.), 1., 3. and (7) (b), r. and recr. (5) (c), (6) (a) 4. and (b), r. (6) (a) 5., renum. (6) (a) 6. to be (6) (a) 5. and am., cr. (6) (c) 4. to 7., (8) and (9), Register, May, 1997, No. 497, eff. 9-1-97; CR 02-028: am. (3) (b), Register July 2002 No. 559, eff. 8-1-02; correction in (2) (b) made under s. 13.93(2m) (b) 7, Stats., Register July 2002 No. 559; CR 99-135: am. (4), (6) (a) (intro.) and (c) (intro.), cr. (6) (d) Register February 2004 No. 578, eff. 3-1-04; CR 08-029: cr. (6) (a) 4m. Register August 2008 No. 632, eff. 9-1-08.