Wisconsin Administrative Code › Department of Transportation › Chapter Trans 138 - Dealer Facilities, Records, And Licenses › Section Trans 138.025 - Motor vehicle dealer license required; exceptions

Current through June 24, 2024
(1) DEALERS. Except
			 as provided in sub. (2), any person engaging wholly or partly in the business
			 of selling motor vehicles or exchanging, buying, leasing, providing services
			 aiding the sale of motor vehicles, offering or attempting to negotiate a sale
			 or exchange of an interest in motor vehicles, whether or not such vehicles are
			 owned by such person, without first obtaining and maintaining a valid license
			 under ss. 218.0101 to
			 218.0163, Stats., violates s.
			 218.0114, Stats.
Note:
Examples of motor vehicle dealers include
				businesses that sell vehicles from their own inventories, persons who sell
				vehicles on consignment, and "buying clubs" or others who negotiate terms of
				sale in behalf of consumers or dealers, such as a membership organization which
				arranges special discounts for its members with dealers. Arranging such
				discounts constitutes "offering or attempting to negotiate a sale or exchange
				of an interest in motor vehicles for compensation," which is part of the
				statutory definition of a dealer. "Compensation" includes increasing the value
				of membership or affiliation with a club or association.
(2) EXEMPTIONS. The following persons are not
			 required to hold a motor vehicle dealer license and, except as provided in this
			 subsection, are exempt from the provisions of this chapter and ss.
			 218.0101 to
			 218.0163, Stats.
(a)
Express statutory
			 exclusions.
Any person described in s.
			 218.0101(23)
			 (b), Stats.
(b)
Limited private sales.
Any person who sells or who offers or attempts to negotiate a sale of 5 or
			 fewer used motor vehicles during a 12 month period, provided that the vehicles
			 are privately titled to that person.
(c)
Auxiliary business
			 services.
A person who provides services to prospective sellers or
			 buyers which aid the sale of motor vehicles if and only if the service
			 provider's compensation is determined prior to, and is completely independent
			 of, the sale of any motor vehicle.
Note:
This exemption is primarily intended to
				allow advertising companies, newspapers, magazine publishers, property lessors,
				and others to provide their usual business services to dealers without having
				to be licensed as dealers themselves, even though their services or activities
				may encourage or facilitate vehicle sales.
(d)
Retail disposal of vehicles by
			 business fleet owners.
A corporation, firm, association, partnership,
			 or other business that sells its own used motor vehicles to retail buyers,
			 provided that all of the vehicles are privately titled to the seller; and that
			 all the vehicle sales are incidental.
Note:
This exemption allows fleet owners to sell
				off their surplus property to retail customers without getting a dealer
				license. It does not apply, however, to companies which lease, rent or
				manufacture motor vehicles since their vehicles are not privately
				titled.
(e)
Wholesale disposal of vehicles by business fleet owner.
A
			 corporation, firm, association, partnership, or other business that sells its
			 own used motor vehicles, provided that all sales are made to licensed motor
			 vehicle, wholesale, motor vehicle auction, or salvage dealers; and that all
			 vehicle sales are incidental.
(f)
Exempt auction services.
A retail auctioneer in compliance
			 with s. Trans 138.028.
(g)
Licensed wholesalers.
A wholesaler in compliance with s. Trans
			 138.027.
(h)
Licensed
			 salespersons.
A motor vehicle salesperson licensed in accordance with
			 s. 218.0114(1),
			 Stats., and acting within the scope of the salesperson's employment with a
			 licensed dealer.