New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 2 - CONSUMER PROTECTION › Part 13 - REQUIREMENTS FOR SPOT DELIVERY OF MOTOR VEHICLES › Section 12.2.13.8 - SPOT DELIVERY GENERALLY

Current through Register Vol. 35, No. 13, July 16, 2024
In a sale conditioned on financing, it is an unfair trade
				  practice for a motor vehicle dealer who delivers a new, demonstration or used
				  motor vehicle to a buyer to.
A. Orally
				or in writing represent to the buyer at the time of signing the purchase order
				agreement or sales transaction document that the sale is final and complete if
				the financing contingency is unmet.
B. Refuse to void and nullify the contract if
				financing is not finalized within 20 calendar days from the date of delivery of
				the motor vehicle.
C. Fail to
				return to the buyer, within a reasonable time, all sums of money paid or
				collateral including a trade-in provided by the buyer and held by the motor
				vehicle dealer.
D. Accept a
				trade-in and then sell or remove the trade-in from the lot where the
				transaction occurred before the financing of the purchased motor vehicle has
				been finalized and the sale completed.
E. Fail to pay the retail value of the
				trade-in vehicle or the assigned value of the trade-in itself, as well as all
				other monies or things due the buyer should the motor vehicle dealer sell or
				remove the trade-in from the lot before the financing has been finalized. The
				risk of loss during the period shall be assessed against the motor vehicle
				dealer.
F. Fail to timely pay the
				lender the monthly scheduled payment, should a payment become due before the
				sale is final. The buyer will reimburse the dealer for such a payment if the
				contract is rightfully revoked in accordance with this rule.
G. Charge the buyer for any costs associated
				with the refurbishing, repair or maintenance of the trade-in or for any sums
				paid by the motor vehicle dealer to pay off the outstanding debt owed on the
				trade-in. However, should the buyer rightfully revoke the contract, buyer will
				reimburse the motor vehicle dealer for payments made on the outstanding balance
				of the trade in.
H. Fail to include
				the following statement in no less than bold 12 point type, conspicuously
				placed on the purchase order agreement or sales transaction document and signed
				ONLY by the buyer subject to the financing contingency: SPOT DELIVERY: Buyer
				has the right to void this purchase if financing is not approved within 20
				calendar days after delivery of vehicle. Buyer has the right to the return of
				any trade-in and all money paid by buyer, if buyer voids this contract under
				this paragraph. To exercise this right, buyer must return the vehicle to the
				dealer in the same condition as received (normal wear and tear excepted),
				within 48 hours of receipt of notice that financing was not approved. Dealer
				shall not charge any fees as long as the vehicle is returned as provided in
				this paragraph.
I. Charge any usage
				fee or any other type of surcharge to the buyer in association with the
				rightful revocation of the purchase order agreement or sales transaction
				document as provided by this rule.
J. Fail to maintain for a period of three
				years in the dealer file jacket the following documents regardless of whether
				the sales transaction is finalized:
(1) copies
				of all credit applications, transmittals sent to or received from any lender,
				or any documents related to the approval or denial of financing, offers or
				counteroffers of financing, or requests for additional information related to a
				request for financing;
(2) copies
				of every signed purchase agreement or sales transaction document; and
(3) a log recording the date the dealership
				notified the buyer of the changes to the contract, with a detailed description
				of the changes to the terms and conditions of the sale of the vehicle, and the
				date upon which the purchaser agreed to each of the changes.