Definitions

  1. Law
  2. Georgia Code
  3. Professions and Businesses
  4. Used Motor Vehicle and Used Motor Vehicle Parts Dealers
  5. Definitions

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As used in this chapter, the term:

  1. "Board" means the State Board of Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers.
  2. "Dismantler" means any person, partnership, limited liability company, firm, or corporation engaged in the business of acquiring wrecked, abandoned, or reparable motor vehicles and selling either the usable parts, the motor vehicle as a unit, or the hulk of the motor vehicle after the usable parts have been removed. Without limiting any of the foregoing, for the purposes of this chapter, a person, partnership, limited liability company, firm, or corporation shall be presumed to be engaged in the business of auto dismantling if he, she, or it possesses ten or more inoperative motor vehicles for more than 45 days unless such vehicles are scrap vehicles being held by a scrap metal processor for recycling scrap metal, vehicles awaiting repairs being held by a repair business, or vehicles being held for other reasons as may be prescribed by the board.
  3. "Established place of business" means a salesroom or sales office in a building or on an open lot of a retail used car dealership or at which a permanent business of bartering, trading, offering, displaying, selling, buying, dismantling, or rebuilding wrecked or used motor vehicles or parts is carried on, or the place at which the books, records, and files necessary to conduct such business are kept. Each such place of business shall be furnished with a working telephone listed in the name of the licensee for use in conducting the business and shall be marked by an appropriate permanent sign as prescribed by the appropriate division under this chapter.
  4. "Financial institution" means a finance company or a banking institution or any subsidiary of a finance company or banking institution which engages solely in the financing or leasing of motor vehicles. Such term shall not mean a pawnbroker as such term is defined in Code Section 44-12-130.
  5. "Licensee" means any person who is required to be licensed or who is actually licensed under this chapter.
  6. "Major component part" means one of the subassemblies of a motor vehicle as defined in paragraph (9) of Code Section 40-3-2.
  7. "Motor vehicle" or "car" means every vehicle which is self-propelled and required to be registered under the laws of this state, except trackless trolleys (which are classified as streetcars), airplanes, motorboats, motorcycles, motor driven cycles, or go-carts.
  8. "Motor vehicle broker" means a person who, for a commission or with the intent to make a profit or gain of money or other thing of value, negotiates or attempts to negotiate the sale of a motor vehicle on behalf of another. Such term shall not mean any person engaged in the solicitation, negotiation, or advertising of the sale of used motor vehicles or any owner of real property who allows the display of used motor vehicles on such property if the sale of such vehicles is made by a used car dealer or a financial institution.
  9. "Part" means any used motor vehicle part that has been installed as standard or optional equipment on a motor vehicle, has been removed from the motor vehicle on which it was originally attached or affixed, and is the subject of sale or resale as a part and not as scrap.
  10. "Person" means any individual, partnership, limited liability company, firm, association, corporation, or combination of individuals of whatever form or character.
  11. "Rebuilder" means any person, partnership, limited liability company, firm, or corporation engaged in the business of buying more than two salvage or wrecked motor vehicles per year for the purpose of restoring or rebuilding them with used or new motor vehicle parts, or both, to be sold as motor vehicles.
  12. "Salvage dealer" means any person, firm, or corporation who purchases a salvage vehicle or parts of a salvage vehicle for purposes of resale as parts only or as salvage.
  13. Reserved.
  14. "Salvage vehicle" means any vehicle which:
    1. Has been damaged, crushed, or otherwise reduced to such a state that its restoration would require the replacement of two or more major component parts;
    2. Has been acquired by an insurance company as a result of the vehicle's being damaged to the extent that its restoration to an operable condition would require the replacement of two or more major component parts or for which the insurance company has paid a total loss claim, excluding recovered total theft vehicles which do not require the replacement of two or more major component parts for restoration; or
    3. Is an imported vehicle which has been damaged in shipment and disclaimed by the manufacturer as a result of the damage, has never been the subject of a retail sale to a consumer, and has never been issued a certificate of title.
  15. "Scrap vehicle" means any vehicle which has been wrecked, destroyed, or damaged to the extent that it cannot be economically repaired, rebuilt, or made operable or roadworthy.

    (15.1) "Temporary site" means a location at which used motor vehicles are sold or offered for sale for which a temporary site permit has been issued by the board in accordance with Code Section 43-47-8.2 and which location is:

    1. Used for a period not to exceed 96 hours in any 30 day period of time;
    2. Located in the county in which the established place of business of the used motor vehicle dealer using the temporary site is located or an adjoining county; and
    3. Used not more than three times in any calendar year.
  16. "Used motor vehicle" or "used car" means any motor vehicle or car other than a motor vehicle which has never been the subject of a retail sale by a new motor vehicle dealer or a used motor vehicle dealer and which is the subject of a retail sale to a consumer for his or her own use or of a resale to another licensed dealer.
    1. "Used motor vehicle dealer," "used car dealer," or "licensee" means any person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, exchanges, rents with option to purchase, offers, or attempts to negotiate a sale or exchange of an interest in used motor vehicles or who is engaged wholly or in part in the business of selling used motor vehicles, whether or not such motor vehicles are owned by such person. A motor vehicle wholesaler and a motor vehicle broker shall be deemed to be a used motor vehicle dealer or a used car dealer for the purposes of this chapter. Any independent motor vehicle leasing agency which sells or offers for sale used motor vehicles shall be deemed to be a used motor vehicle dealer or a used car dealer for the purposes of this chapter. Any motor vehicle auction company selling or offering for sale used motor vehicles to independent motor vehicle dealers or to individual consumers shall be deemed to be a used motor vehicle dealer or used car dealer for the purposes of this chapter except as otherwise provided in division (x) of subparagraph (B) of this paragraph. Without limiting any of the foregoing, the sale of five or more used motor vehicles in any one calendar year shall be prima-facie evidence that a person is engaged in the business of selling used motor vehicles. A pawnbroker who disposes of all repossessed motor vehicles by selling or exchanging his or her interest in such motor vehicles only to licensees under this chapter shall not be considered a used motor vehicle dealer under this chapter as long as such pawnbroker does not otherwise engage in activities which would bring him or her under the licensing requirements of this chapter.
    2. Used motor vehicle dealer or used car dealer does not include:
      1. Franchised motor vehicle dealers and their wholly owned and controlled subsidiaries operating in the county in which their franchise is located or operating as a direct dealer of a manufacturer;
      2. Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court;
      3. Public officers while performing their official duties;
      4. Persons disposing of motor vehicles acquired for their own use when the same shall have been acquired and used in good faith and not for the purpose of avoiding the provisions of this chapter. Evidence of good faith, as provided in this division, shall consist of the fact that the vehicle is properly titled and registered in the name of the transferor;
      5. Financial institutions when the financial institution sells its repossessed or leased motor vehicles. Finance companies, for purposes of this chapter, shall not include a pawnbroker as defined in Code Section 44-12-130;
      6. Insurance companies who sell motor vehicles to which they have taken title as an incident of payments made under policies of insurance;
      7. Persons, firms, or corporations who act as agents for insurance companies for the purpose of soliciting insurance for motor vehicles;
      8. Persons, firms, or corporations engaged in a business other than as a used car dealer, as defined in divisions (i) through (vii) of this subparagraph, who sell motor vehicles traded in as a part of the purchase price of an article other than a motor vehicle and which have not been acquired by direct purchase for cash, and which business is not for the purpose of violating this chapter;
      9. Persons, firms, or corporations which sell only vehicles which will not be used primarily for transportation purposes, including, but not limited to, antique automobiles, classic automobiles, and automobiles sold solely as speculative investments. In determining whether a vehicle or vehicles will not be used primarily for transportation purposes, the board may rely on the representations, written or oral, made regarding the vehicles, but may also look at any other relevant evidence; or
      10. Persons licensed or companies registered under Chapter 6 of this title, relating to auctioneers, when auctioning used motor vehicles which are being disposed of under administration of an estate or when auctioning used motor vehicles and real property at the same sale when such vehicles and property are owned by a common owner.
  18. "Used motor vehicle parts dealer" or "used parts dealer" means any person, partnership, limited liability company, firm, or corporation buying, selling, or using motor vehicle parts, either as a used motor vehicle parts dealer, a motor vehicle dismantler, a motor vehicle rebuilder, a salvage pool dealer, or a salvage dealer.
  19. "Wholesaler" means a person who sells or distributes used motor vehicles to motor vehicle dealers in this state, has a sales representative in this state, or controls any person who offers for sale, sells, or distributes any used motor vehicles to motor vehicle dealers in this state.

(Ga. L. 1958, p. 55, § 2; Ga. L. 1968, p. 23, §§ 1, 2; Ga. L. 1980, p. 1286, § 1; Ga. L. 1983, p. 550, § 1; Ga. L. 1988, p. 1504, § 1; Ga. L. 1989, p. 154, § 1; Ga. L. 1990, p. 1032, § 1; Ga. L. 1991, p. 983, §§ 1, 2; Ga. L. 1993, p. 123, § 59; Ga. L. 1994, p. 1060, § 1; Ga. L. 1995, p. 441, § 1; Ga. L. 1997, p. 530, § 1; Ga. L. 1998, p. 128, § 43; Ga. L. 1998, p. 1662, §§ 1, 2; Ga. L. 2004, p. 452, § 4; Ga. L. 2005, p. 321, § 5/HB 455; Ga. L. 2006, p. 465, § 3/HB 1052; Ga. L. 2008, p. 835, § 8/SB 437; Ga. L. 2011, p. 752, § 43/HB 142.)

Law reviews.

- For note on 1989 amendment to this Code section, see 6 Georgia St. U.L. Rev. 312 (1989).

JUDICIAL DECISIONS

Automobile leased as "used demo" was "new car".

- Automobile leased by plaintiffs from defendant dealer as a "used demo" was a "new" car, not a "used" car, and the fact that the car was previously titled to the dealer's son-in-law did not create an issue of fraud in violation of the Fair Business Practices Act, O.C.G.A. § 10-1-390 et seq. Toirkens v. Willett Toyota, Inc., 192 Ga. App. 109, 384 S.E.2d 218 (1989).

Automobile used as demonstrator was "new car."

- In an action alleging violations of the Fair Business Practices Act, O.C.G.A. § 10-1-390 et seq., because the van leased to plaintiffs was always titled in the dealer and was never the subject of a retail sale or lease, the van was a "new car." The dealer did not engage in fraudulent or unfair business practices by listing the van as "new", even though the van had been driven as a demonstrator and had been in a collision. Kondo v. Marietta Toyota, Inc., 224 Ga. App. 490, 480 S.E.2d 851 (1997).

Cited in Georgia Franchise Practices Comm'n v. Massey-Ferguson, Inc., 244 Ga. 800, 262 S.E.2d 106 (1979); Chancellor v. Gateway Lincoln-Mercury, Inc., 233 Ga. App. 38, 502 S.E.2d 799 (1998).

OPINIONS OF THE ATTORNEY GENERAL

Antique used car dealers must register.

- If seller of antique automobiles is a "used car dealer" as defined in Ga. L. 1958, p. 55, § 2 (see now O.C.G.A. § 43-47-2), the seller must register and obtain a license as provided in Ga. L. 1958, p. 55, §§ 1, 13 (see now O.C.G.A. §§ 43-47-7 and43-47-12). 1969 Op. Att'y Gen. No. 69-386.

Franchised motor vehicle dealer solely engaged in the sale of used cars at a temporary location in a county outside the county in which the franchise is located is a used motor vehicle dealer and is subject to the licensure requirements of the Used Motor Vehicle Dealers' and Used Motor Vehicle Parts Dealers' Registration Act, O.C.G.A. § 43-47-1 et seq. 2001 Op. Att'y Gen. No. 2001-7.

"Auto broker" required to register and obtain license.

- An "auto broker" who engages in the business of soliciting, offering, displaying, or advertising the sale of used motor vehicles was a "retail used car dealer" within the meaning of former subdivision (6)(A)(i) and must register and obtain a license from the Georgia State Board of Registration of Used Car Dealers. 1981 Op. Att'y Gen. No. 81-10 (decided prior to 1983 amendment).

Sale of rebuilt vehicles.

- Licensed used motor vehicle rebuilder may sell vehicles which the rebuilder rebuilds without also being registered as a used car dealer as the sale of such vehicles is incidental to their rebuilding under the rebuilder's license. 1988 Op. Att'y Gen. No. 88-28.

Used motor vehicle parts dealer.

- Licensed used motor vehicle parts dealer can transfer salvage titles without being licensed as a used motor vehicle dealer provided that such dealer complies with the Motor Vehicle Certificate of Title Act, O.C.G.A. § 40-3-1 et seq., and rules and regulations of the State Revenue Commissioner relating to salvage vehicles. 1998 Op. Att'y Gen. No. 98-14.

Auto rental or leasing company subject to same regulation as any other used car dealer.

- An auto rental or leasing company coming within the statutory definition of "wholesale used car dealer" or "retail used car dealer" was subject to the same regulation as any other used car dealer under O.C.G.A. T. 43, C. 47, unless the company could show that the company came within an exception provided in former subparagraph (6)(B). 1981 Op. Att'y Gen. No. 81-51 (decided prior to 1983 amendment).

Only distinction made between wholesale and retail dealers is that a retail dealer must maintain an established place of business which must be shown on the retail dealer's license application, whereas a wholesale dealer need not maintain such an establishment. 1971 Op. Att'y Gen. No. 71-163 (decided prior to 1983 amendment).

Established place of business must be physically separated from any other business.

- Provision contained in O.C.G.A. § 43-47-2(2) requiring a retail used car dealer to maintain an established place of business "physically separated from any other business," means that any business of the dealer, other than that at which the bartering, trading, and selling of used motor vehicles takes place, must be "physically separated" from the "established place of business." 1981 Op. Att'y Gen. No. 81-9.

Phrase, "any other business," includes a related subsidiary business operated by the retail dealer, such as a body shop. 1981 Op. Att'y Gen. No. 81-9.

Phrase, "any other business," refers to any business other than one at which a permanent business of bartering, trading, and selling of used motor vehicles will be carried on. 1981 Op. Att'y Gen. No. 81-9.


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