Dealers have questions regarding the Attorney General’s latest regulations, which took effect on August 19, 2024 and require disclosures.

It has always been required that, for all vehicles being offered for sale, the following six items of any roadworthy vehicle (one for which the dealer would issue a license plate and allow to be driven off the lot) are required to be disclosed:
1. frame is bent, cracked or twisted;
2. engine block or head is cracked;
3. vehicle is unable to pass state inspection (even if the vehicle’s inspection sticker is still valid);
4. transmission is damaged, defective or so deteriorated as to require replacement;
5. differential is damaged, defective, or so deteriorated as to require replacement; or
6. vehicle is flood damaged.

Now, the regulations clarify that the disclosure for the 6 items above must be made in writing prior to the sale.
More significantly, the new regulations prevent a dealer from advertising or offering a vehicle for sale unless:
• a certified inspection mechanic designated by the selling dealer has inspected the vehicle not more than 30 days after the motor vehicle comes into the inventory of the selling dealer for all conditions listed above, including whether the
vehicle is able to pass Pennsylvania’s safety inspection.

The vehicle does not need to be repaired to pass inspection. The dealer is responsible to disclose if the vehicle is unable to pass safety inspection.

The regulations do not require disclosure of the specific items for which the vehicle would fail State inspection. However, if a vehicle is unable to pass safety inspection, PAA recommends that the disclosure should include the items for which the vehicle fails under the State inspection program and/or that a repair order is attached to the disclosure.

And
• If the vehicle accumulates 500 miles or more while in inventory, the vehicle must be checked again at the time of sale in order to disclose the items at left except the ability to pass safety inspection.

At the time of sale, the vehicle’s ability to pass state inspection does not need to be determined since the safety inspection was performed when the vehicle was taken into inventory.

The requirements do not apply to selling a vehicle:
• to another dealer;
• at a vehicle auction;
• with a Certificate of Salvage or Non-Repairable Certificate; or
• located outside of Pennsylvania.

PAA Recommends Disclosure Statement with Each Vehicle Sold
PAA is recommending the use of a ‘Vehicle Condition Disclosure Statement’ for every vehicle (new and used) sold by the dealership whether the conditions exist or not. Only by providing a disclosure will the dealership be able to prove that the vehicle was reviewed for the six required disclosures.

The disclosure form used by the dealership should be as thorough as possible and be signed by the buyer-- with a copy supplied to the buyer and another copy retained by the dealership.

If a vehicle is unable to pass safety inspection, the disclosure should include the items for which the vehicle fails under the Pennsylvania Safety Inspection Program.

Dealers can create their own disclosure for the six items at left to accompany vehicle sales, and the indication of 500 miles accumulated when applicable, or PAA’s Dealer Purchasing has a ‘Vehicle Condition Disclosure Statement’ available in a 2-part carbonless form available at: https://www.paadps.com/vehicleconditiondisclosurestatement.aspx or call 1-800-692-7295.

PAA has also coordinated with Reynolds and Reynolds to include the disclosure language on their buyer’s order document. If the disclosure occurs on the buyer’s order, a separate disclosure form is not required.

Stating “As-Is” Alone Not Acceptable Dealers are advised that simply using the term “As-Is” does not satisfy the written disclosure requirement.

Disclosures must be provided in a clear and conspicuous manner on the face of the document.
Information must be provided that the vehicle is sold “as-is”, and a list of the conditions (required disclosures 1-6) present in the vehicle.

Unroadworthy Vehicle
An “As-Is” vehicle could be sold as unroadworthy (no plate issued or transferred) and towed, trailered or taken off the lot on a flat bed.

If selling a vehicle as unroadworthy, the Buyer’s Order must include a clear and conspicuous disclosure of a list of the vehicle conditions, including:
1. frame is bent, cracked or twisted;
2. engine block or head is cracked;
3. vehicle is unable to pass state inspection (even if the vehicle’s inspection sticker is still valid);
4. transmission is damaged, defective or so deteriorated as to require replacement;
5. differential is damaged, defective, or so deteriorated as to require replacement; or
6. vehicle is flood damaged.

Dealers should examine their current procedures and make adjustments if needed to comply with the regulations which took effect on August 19, 2024.