(2) “Delivery prior to sale” means a delivery of a motor vehicle by a new motor vehicle dealer to a consumer prior to the completion and execution by both parties of a contract for sale. (b) If a new motor vehicle dealer engages in a delivery prior to sale, then the new motor vehicle dealer shall provide the consumer with an agreement for delivery prior to sale at the time of delivery of the motor vehicle to the consumer. (c) (1) The agreement for delivery prior to sale shall be: (A) Printed in at least 12-point type; and (B) Signed by the consumer and the new motor vehicle dealer or the dealer’s representative. (2) The agreement for delivery prior to sale shall not be considered a contract for sale. (d) The agreement for delivery prior to sale shall include all of the following terms: (1) Unless the consumer is approved for financing and both parties have executed a contract for sale, then the new motor vehicle dealer shall not: (A) Deposit or cash any down payment provided by the consumer; and (B) Sell any motor vehicle that is presented by the consumer as a trade-in; (2) The consumer retains the right to cancel the purchase of a motor vehicle if: (A) The new motor vehicle dealer changes any terms; or (B) The consumer fails to obtain financing that meets the agreed upon interest rate; and (3) If a consumer who executes an agreement for delivery prior to sale chooses not to execute a contract for sale or otherwise cancels the purchase as provided under this section, then: (A) The new motor vehicle dealer shall not: (i) Impose any charge or penalty against the consumer; or (ii) Deposit or cash any down payment provided by the consumer; and (B) The new motor vehicle dealer shall immediately return any motor vehicle that was presented by the consumer as a trade-in; and (4) If the consumer decides to not purchase the motor vehicle, the consumer shall return the motor vehicle to the new motor vehicle dealer within forty-eight (48) hours after the consumer notifies the dealer. (e) If a consumer fails to return a motor vehicle pursuant to subdivision (d)(4) of this section, then the new motor vehicle dealer may recover the vehicle without the necessity of judicial process if the recovery is possible without committing an act of breaking or entering or breach of the peace. (f) The Arkansas Motor Vehicle Commission shall promulgate rules to implement, enforce, and administer this section. History. 2005 No. 1687, § 1; 2019, No. 315, § 2834. 23-112-317. Motor Vehicle Dealer Service and Handling Fees. (a) A motor vehicle dealer may fill in the blanks on standardized forms in connection with the sale or lease of a new or a used motor vehicle if the motor vehicle dealer does not charge for the service of filling in the blanks or otherwise charge for preparing documents. (b) (1) A motor vehicle dealer may charge a service and handling fee in connection with the sale or lease of a new or a used motor vehicle for: (A) The handling, processing, and storage of documents; and (B) Other administrative and clerical services. (2) (A) The service and handling fee may be charged to allow cost recovery for motor vehicle dealers. (B) A portion of the service and handling fee may result in profit to the motor vehicle dealer. (c) (1) The Arkansas Motor Vehicle Commission shall determine by rule the amount of the service and handling fee that may be charged by a motor vehicle dealer. The service and handling fee shall be no less than zero dollars ($0.00) and no more than one hundred twenty-nine dollars ($129). (2) If a service and handling fee is charged under this section, the service and handling fee shall be: (A) Charged to all retail customers; and (B) Disclosed on the retail buyer’s order form as a separate itemized charge. (3) If a service and handling fee is charged under this section, the service and handling fee is not required to be charged to all fleet sales. (4) If a service and handling fee is charged under this section: (A) A motor vehicle dealer may charge a purchaser of a motor vehicle a different service and handling fee if the purchaser utilizes: (i) A manufacturer’s sales plan or program; or (ii) Financing through a finance company that caps a service and handling fee; (B) The service and handling fee charged under this section shall be consistent with the service and handling fee authorized under: (i) The manufacturer’s sales plan or program; (ii) The finance company policy; or (iii) The laws of a foreign state with subject-matter jurisdiction. (d) A preliminary worksheet on which a sale price is computed and that is shown to the purchaser, a retail buyer’s order form from the purchaser, or a retail installment contract shall include in reasonable proximity to the place on the document where the service and handling fee authorized by this section is disclosed: (1) The amount of the service and handling fee; and (2) The following notice in type that is bold-faced, capitalized, underlined, or otherwise conspicuously set out from the surrounding written material: “A SERVICE AND HANDLING FEE IS NOT AN OFFICIAL FEE. A SERVICE AND HANDLING FEE IS NOT REQUIRED BY LAW BUT MAY BE CHARGED TO THE CUSTOMER FOR PERFORMING SERVICES AND HANDLING DOCUMENTS RELATING TO THE CLOSING OF A SALE OR LEASE. THE SERVICE AND HANDLING FEE MAY RESULT IN PROFIT TO THE DEALER. THE SERVICE AND HANDLING FEE DOES NOT INCLUDE PAYMENT FOR THE PREPARATION OF LEGAL DOCUMENTS. THIS NOTICE IS REQUIRED BY LAW.” (e) The Arkansas Motor Vehicle Commission may promulgate rules to implement, enforce, and administer this section. History. Acts 2007, No. 366, § 1; 2013, No. 561, § 5; 2015, No. 1055, § 6. 23-112-318. Negative Equity Financing and Disclosures Permitted. A new or used motor vehicle dealer or a new or used motor vehicle lessor is not required to be licensed by the State Bank Department in order to: (1) (A) Pay in connection with a credit sale transaction any amount necessary to satisfy a lease, a security interest, or a lien upon a motor vehicle that is either returned or traded in to the new or used motor vehicle dealer or the new or used motor vehicle lessor by the purchaser of a new or used motor vehicle. (B) The amount paid by the new or used motor vehicle dealer or by the new or used motor vehicle lessor may be included and disclosed as part of the credit sale transaction; or (2) (A) Pay in connection with a lease transaction, any amount necessary to satisfy a lease, a security interest, or a lien upon a motor vehicle that is either returned or traded in to the new or used motor vehicle dealer or the new or used motor vehicle lessor by the lessee of a new or used motor vehicle. (B) The amount paid by the new or used motor vehicle dealer or by the new or used motor vehicle lessor may be included and disclosed as part of the amount to be paid by the lessee under the lease transaction. History. Acts 2007, No. 649, §1. 23-112-319. Reimbursement claim by motor vehicle dealer. (a) (1) A manufacturer shall compensate its new motor vehicle dealers for all labor and parts required by the manufacturer to perform recall repairs. (2) The compensation for recall repairs required under subdivision (a) (1) of this section shall be reasonable. (3) If recall parts or a remedy is not reasonably available to perform a recall service or repair on a used motor vehicle held for sale by a dealer authorized to sell and service new motor vehicles of the same line make of a motor vehicle within thirty (30) days of the manufacturer’s issuing the initial notice of recall, and the manufacturer has issued a stop-sale order or do-not-drive order on the used motor vehicle, the manufacturer shall compensate the dealer at a prorated rate of at least one and twenty-five-hundredths percent (1.25%) of the value of the used motor vehicle per month beginning thirty (30) days from the date on which the stop-sale order or do-not-drive order was provided to the dealer until the earlier of: (A) The date the recall parts or a remedy is made available; or (B) The date the dealer sells, trades, or disposes of the affected used motor vehicle. (b) This section applies only to a: (1) Used motor vehicle subject to a safety or emissions recall in accordance with federal law and regulations and a stop-sale order to do-not-drive order has been issued and repair parts or a remedy remains unavailable for thirty (30) days or longer; and (2) New motor vehicle dealer having an affected used motor vehicle: (A) In inventory for sale at the time the stop-sale order or do-not-drive order was issued; 34 | 2025-2026 Membership Directory and Buyer’s Guide ARKANSAS MOTOR VEHICLE COMMISSION ACT
RkJQdWJsaXNoZXIy MTg3NDExNQ==