A Comprehensive Checklist for Dealer Records Inspections

Checklist marked red with a red pen

Proper record retention isn’t hard, but it does take commitment. If you are facing a state inspection, or just want to make sure you are in compliance, use this checklist as a guide.

It’s true, in this business keeping accurate and complete records is an absolute must. This is not a difficult task by any means. However, it does take time and organization as well as being knowledgeable about what records to retain and how.

I discovered a few statistics that shocked me. In the license period of 2016-2017 the state conducted just under 6,000 records inspections. Over 46% of dealers failed the inspection. This number is not only unacceptable but easily avoidable.

Florida Statutes Concerning Records Retention

Displayed for Sale – Florida Statutes 320.27(7), 320.27(9)(b)(4), 320.27 (9)(b)(17) and Rule 15C-7 Florida Administrative Code.
Purchases and Sales – Florida Statute 320.27(6), 320.27(9) (b)(4), 319.23(6)(a), 320131(2) and 316.2935(1)(b)
Temporary Tags – Florida Statute 320.76(6)
Trade-In Information – Florida Statute 320.27(9)(b)15, 319.24(5)(a)
Dealer Plates – Florida Statute 320.13(1)(a)
Bona Fide Employees – Florida Statute 320.27 (1)(f)

Section I: Displayed for Sale

Florida Statutes 320.27(7), 320.27(9)(b)(4), 320.27 (9)(b)(17) and Rule 15C-7 Florida Administrative Code.

Dealers are required to possess a properly assigned Certificate of Title for each vehicle that is being ordered for sale or have other proof of ownership. In addition to the title or proof of ownership, dealers will need proof of where they purchased the vehicle, as in auction, wholesale, or direct from a customer. A dealer is also required to have a properly completed odometer disclosure and a Buyers Guide. If a dealer is missing this proof of ownership a “Not for Sale” notice must be placed on the vehicle if it is displayed.

What the examiner will be recording from 10 vehicles you have displayed:

Year, Make, Model, VIN
Mileage, Actual, Not Actual or Exempt
Odometer Statement
Properly assigned title, and title number
Buyers Guide posted
Proper proof of ownership, assigned title and proof of purchase

Section II: Purchases and Sales

Florida Statute 320.27(6), 320.27(9) (b)(4), 319.23(6)(a), 320131(2) and 316.2935(1)(b)

The licensee (dealer) to keep records of purchases and sales transactions for a period of five years. The dealer must also have an executed odometer disclosure statement and proof that the title was applied for within a 30 day period (this is the number one complaint from consumers) and that no more than two temp tags were given to any one vehicle. The dealer will also need proof of emissions statement. This part of the inspection will also confirm the presence of a Buyers Guide and proof of refund if the customer was initially charged more than the plate and registration cost.

What the examiner will be recording from 10 sales over 30 days old:

Year, make, model, VIN
Date acquired
Acquired from
Proof of purchase
Acquired mileage
Odometer Disclosure
Branded Title?
Purchaser name
Certification of Pollution
Control Devices Mileage at time of sale
Brand disclosed to customer
Proof of insurance
Buyers Guide
Transfer within 30 days
More than two temp tags?
Refund issued for overpayment of title work?
Date title was applied for

Section III: Temporary Tags

Florida Statute 320.76(6)

Dealers are required to keep an accurate record of all temporary tags issued. The dealer’s approved vendor for temp tags will have a report of tags issued online. Preprinted tags can be issued in the event the state system is down and can not exceed a 30 day period. Any preprinted tag issued must be entered into the vendor database within 24 hours of the system coming back up. Any voided plates must be kept with the deal.

What the examiner will be recording from this section:

Purchase date of pre-printed tags
Amount purchased
From series to series
Agency purchased from
Receipt for tags
# of tags on hand
Log maintained
Tags issued for 30 days
Tag and form 83091 completed properly FRVS updated within one business day
No more than two tags issued
Number of offline tags issued in the last 6 months
All tags not accounted for
All voided tags
Print on Demand Vendor

Section IV: Trade-In Information

Florida Statute 320.27(9)(b)15, 319.24(5)(a)

Dealers are not allowed to sell a trade-in vehicle before the new deal is consummated without a signed authorization for the consumer allowing the dealer to do so. Dealer must pay off any lien on a traded vehicle within 10 working days.

What the examiner will be looking for and recording in this section:

Proof that the liens of trade in were paid in accordance with the state statute.
Proof that the trade-ins were sold after the deal was consummated
Were the trade vehicles marked as “sold” in the department’s database within the 30 day period?
List of traded in vehicles

Section V: Dealer Plates

Florida Statute 320.13(1)(a)

Requires dealer license plates to be valid for use on vehicles in the dealer’s inventory and for sale. Dealer plates may not be used on wreckers, parts or service vehicles or any vehicles the dealer has been compensated for.

What the examiner will be looking at and recording in this section:

Are dealer plates being used properly?
Account for every dealer plates
List all plates unaccounted for

Section VI: Bona Fide Employees

Florida Statute 320.27 (1)(f)

“Bona Fide employee” means a person who is employed by a licensed motor vehicle dealer and receives annually an IRS Form W2, or an independent contractor who has a written contract with a licensed motor vehicle dealer and receives annually an IRS Form 1099, for the purpose of acting in the capacity of, or conducting motor vehicle sales transactions as a motor vehicle dealer.

What the examiner will be recording in this section:

Produce a list of every employee and proof all are “Bona Fide” employees
The current list of corporate officers listed on Sunbiz

Look over your current records and cross-check them with this list. Make any changes necessary to be in compliance so when you get the call or email that you will have an inspection you will be ready.

Still feeling unsure on how to best prepare your dealership? Contact me at jennifer@flatags.com and I’d be happy to help you be up to date.