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The Different Laws Governing The Daily Operations Of An Illinois Car Dealer

Every kind of event taking place in the United States is governed by a set of laws to make sure all is fair and legal in the world of human civilization.

Just as drivers on the road have their own set of standards that must be followed for a safe and legal driving experience, so too are car dealerships subjected to various laws dictating how car sales are to operate.

First, there is the Illinois Lemon Law whose main provision is protecting the car consumer from buying and thus having to deal with a brand new but defective vehicle. Though other states have lemon laws covering used cars, the lemon laws in the state of Illinois only apply to new cars that were bought within the state’s boundaries. New RV’s, new vans and light trucks under the 8,000 pound limit are also included in the Illinois lemon vehicle laws.

Under the stipulations of this law, a leased car is treated the same as a new car. Therefore, all Illinois car dealers recommend to their buyers that even if the vehicle they are interested in is leased instead of purchased outright, it is still just as important to keep careful documentation of repairs or problems had with the vehicle in question. This way, the consumer is then able to enjoy the full coverage that the Illinois lemon vehicle law provides to the state’s new car consumers.

Illinois also has strict requirements for those seeking a license to be able to sell motor vehicles.

To start, the applicant must prove that none of the individuals who hold more than ten percent of the company has violated any of the major vehicle laws more than one time in last three years. Such laws include the Illinois Vehicle Code Anti-Theft Law and the Illinois Vehicle Code for Dealers, Transporters, Wreckers, and Rebuilders.

Similarly, the Illinois car dealer also must not have more than two violations per year for the legal provisions that include: The Consumer Finance Act, The Illinois Wage Assignment Act, The Consumer Fraud Act, and the Motor Vehicle Retail Installment Sales Act.

In addition, any person that is intending on becoming a motor vehicle dealer in Illinois must first undergo a complete background check for his criminal history, including a fingerprint session where the fingerprinting receipt must be attached to the dealer application before the Secretary of State will issue him his business licensure.

Dealers of used cars have one other provision with which they must comply in order to legally conduct their business in Illinois. The owners of this type of motor vehicle business must fill out the extra documentation that discloses the rebuilt status of any previously owned vehicle on their lot so as to ensure that no laws are broken and no type of crucial information about the vehicle is left out of the transaction between the dealer, the buyer, and the Secretary of State who’s in charge of maintaining the business.

There are also Illinois car dealer laws centered around the way the car selling business itself is conducted. For example, there are special dealer-assigned plates that each new or used car on said dealer’s lot must contain before the vehicle can be put out for a test drive or a sale. And for those dealers who are selling both new and used cars, the rules state that the used cars must be parked in a separate area than the new cars or else the dealer is once again breaking the law.