We recently notified you that a new law (HB 1243) was put into effect that altered the process for selling a vehicle to a Massachusetts resident. In case you missed it, the basic info is included here.
Important Note: HB1243 only changed the law in New Hampshire regarding the issuance of temporary plates; it did not affect any Massachusetts laws or regulations. Each individual dealer should assess the new rule and develop best management practices relating to the new plate issuance process.
We have created a list of Frequently Asked Questions/Best Management Practices (FAQ & BMP) to assist our members with this change.
Frequently Asked Questions/Best Management Practices
Question: What if the customer leaves the lot with their own plates?
Answer: You should still include the temp plate in the deal jacket.
Question: Do I still need to fill out the "Vehicle Sold to a Massachusetts Resident Form (RSA 261:56-a)?"
Answer: No, issuing a temp plate to the customer serves the purpose of alerting the NH DMV. The RDMV 938 form is no longer required.
Question: Do I have to use the new disclaimer form?
Answer: While the disclaimer form is not required, it is highly recommended as a best management practice and limits your liability. It protects you in the instance the customer is pulled over and claims they were unaware of their obligations as the customer/MA resident. Again, NHADA highly recommends using this form.
Question: Am I required to fill out the title application, or can the customer do this on their own at the MA RMV?
Answer: You do not need to fill out a MA title application and the customer can do this on their own at the RMV, however, many NHADA members use a “runner” or a dealership employee to process the title application. In this example, the customer still leaves your lot with the temp plate, however you are processing the title application on their behalf to eliminate the risk of you becoming liable for the vehicle if the customer does not meet their obligations. If the customer never gets the vehicle titled/perfects the lien, you are on the hook as the owner of the vehicle and responsible for the cost.
Question: Has Massachusetts changed their regulations to allow for the mailing of a title application?
Answer: HB 1243 only effects the vehicle sales process in New Hampshire, and you should follow the same Massachusetts regulations you previously have followed.
BMP: When selling a used car, the best management practice is to not deliver the vehicle to the customer unless you as the dealer have the title in your possession.
For questions or additional guidance, please contact me directly at dbennett@nhada.com or 603-224-2369.
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The new law (HB 1243) eliminates the requirement that a retail motor vehicle dealer submit Form RDMV 938 notifying the New Hampshire Division of Motor Vehicles (DMV) of the sale of a vehicle to a Massachusetts resident. The elimination of this step significantly streamlines the vehicle sales process.
Important Note:
HB1243 only changed the law in New Hampshire regarding the issuance of temporary plates; it did not affect any Massachusetts laws or regulations. Each individual dealer should assess the new rule and develop best management practices relating to the new plate issuance process.
Temporary Plate/Registration Disclaimer for Massachusetts Residents:
When issuing temporary plates to Massachusetts residents, NHADA strongly recommends using a form titled “Temporary Plate/Registration Disclaimer for Massachusetts Residents.” This helps ensure that both the dealer and consumer are protected. It also acknowledges the buyer’s understanding of the laws of the Commonwealth of Massachusetts, including obtaining a permanent registration in a timely manner, paying Massachusetts sales or use tax, and more.