Wis. Admin. Code Department of Transportation Trans 139.08 - Consignment vehicles

(1) A dealer shall comply with all the requirements of this section with respect to any vehicle it sells on a consignment basis. Consignment sales include any arrangement by which a dealer displays or sells a vehicle on behalf of a person other than the dealer.

(2) No dealer may accept delivery of or display a consignment vehicle for sale until all of the following requirements have been met:

(a) Dealer enters into a written consignment agreement with the consignor specifying the terms of the consignment agreement. A consignment agreement for the sale of a vehicle that is not owned by the consignor for personal, family or household purposes between a dealer and a person shall include a provision that the consignor retains a security interest in the vehicle in the amount of the proposed sale price of the vehicle. A consignment agreement for sale of goods owned by the consignor for personal, family or household purposes shall include a provision that the consignor retains ownership of the vehicle.

(b) In a transaction involving goods owned by the consignor for purposes other than personal, family or household purposes, the dealer prepares and executes a U.C.C. financing statement naming consignor as a secured party and files the U.C.C. financing statement with the department of financial institutions. This paragraph does not apply to a consignment vehicle sale through a salvage pool or wholesale auction. The financing statement shall be prepared and filed so as to properly perfect the consignor's security interest. The cost of filing the financing statement may be charged to the consignor.

(3) A dealer shall remit any monies due a consignor under a consignment agreement within 7 days of the date a consignment vehicle is sold.

Notes

Wis. Admin. Code Department of Transportation Trans 139.08

CR 99-135: cr. Register February 2004 No. 578, eff. 3-1-04.

The purpose of this section is to insure that a consignor's interest in any vehicle consigned is protected from adverse claims of motor vehicle dealer creditors, administrators, or trustees. Section 402.326(5), Stats., provides that personal, family or household goods do not become the property of a consignee dealer upon consignment. Therefore, no U.C.C. financing statement is required to protect consignors of personal vehicles. A U.C.C. financing statement is required to perfect the interest of a business consignor in a vehicle consigned to a dealer. ss. 409.310 and 409.319, Stats.