Pennsylvania Auto Dealerships will need to follow several new regulations starting August 19, 2024.

The regulations, developed by the Office of the Attorney General (OAG), require dealerships to disclose the following six conditions for any roadworthy vehicle they would issue a license plate for and allow to be driven off their lot:

• Frame is bent, cracked, or twisted.
• Engine block or head is cracked.
• Vehicle is unable to pass state inspection (regardless of a valid inspection sticker).
• Transmission is damaged, defective, or so deteriorated it requires replacement.
• Differential is damaged, defective, or so deteriorated it requires replacement.
• Vehicle is flood damaged.

The only way to confirm a vehicle's ability to pass a safety inspection is by performing the inspection. A thorough disclosure form, initialed by the buyer with copies provided to both the buyer and dealer's file, is recommended.

Additional Disclosure Requirements

The new regulations mandate that these six disclosures must be made in writing before the sale. Additionally, dealers are prohibited from advertising or offering a vehicle for sale unless:

• A certified inspection mechanic, designated by the selling dealer, has inspected the vehicle within 30 days of its entry into the dealer's inventory for all conditions listed above, including its ability to pass Pennsylvania’s safety inspection.
• If the vehicle accumulates 500 miles or more while in inventory, it must be re-inspected at the time of sale for all conditions except the safety inspection, which is only required upon inventory entry.

Exemptions and Clarifications

There are certain exemptions under the regulation that apply in select circumstances. The new requirements do not apply when selling a vehicle:

• To another dealer.
• At a vehicle auction.
• With a proper Certificate of Salvage or Non-Repairable Certificate.
• Located outside Pennsylvania.
• "As-Is" Sales and Unroadworthy Vehicles

Using the term "As-Is" does not satisfy the written disclosure requirement. The disclosures must be clear and conspicuous on the face of the document, listing the vehicle’s conditions and stating it is sold "as-is." If a vehicle cannot pass safety inspection, the disclosure must specify the items causing the failure under the Pennsylvania Safety Inspection Program.

An “As-Is” vehicle can be sold as unroadworthy (no plate issued or transferred) and must be towed, trailered, or transported off the lot on a flatbed. The Buyer’s Order must include a clear and conspicuous list of the vehicle’s conditions.

Conclusion

Dealers should review and, if necessary, adjust their current procedures to comply with the new regulations. Ensuring adherence to these updated requirements will help avoid potential legal complications.

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