Ohio Auto Law FAQs
If a new motor vehicle incurs damage where the retail cost of repair exceeds 6% of MSRP, the dealer must disclose this fact to consumers.The damage excludes damage to glass, tires and bumpers, if replaced with OEM parts.
SALES AND INSTALLMENT CONTRACTS
Ohio allows dealers to charge a documentary service fee of $250 or 10% of the retail sale price. O.R.C. 1317.07 and 4517.261.
Ohio prohibits charging an interest rate in excess of 25% O.R.C. 1317.061.
A contract of sale, must clearly disclose (1) the vehicle’s VIN number, (2) the mileage on the odometer at time of sale, (3) the sale price of the vehicle, (4) the amount of down payment, if any, (5) the amount credited for any trade-in and a description of the trade-in, (6) the amount of any finance charge, (7) the amount charged for any insurance and the type of insurance being purchased, (8) the net balance due from the buyer, and (9) the terms of payment of the next balance. O.R.C. 4517.26. Ohio also requires that the sale of a motor vehicle occur in “one document.” While practically speaking this is impossible, the buyer’s order can be used to integrate all other documents related to the sale of the motor vehicle by stating “the following documents are integrated into this sales contract” and then listing all remaining documents.
PLACE OF BUSINESS REQUIREMENTS
The Ohio Revised Code limits the sale of vehicle to an established place of business. An establish place of business is defined as: “A place of business that is used for selling, displaying, offering for sale, or dealing in motor vehicles shall be considered as used exclusively for those purposes even though snowmobiles, farm machinery, outdoor power equipment, watercraft and related products, or products manufactured or distributed by a motor vehicle manufacturer with which the motor vehicle dealer has a franchise agreement are sold or displayed there, or if repair, accessory, gasoline and oil, storage, parts, service, or paint departments are maintained there, or such products or services are provided there, if the departments are operated or the products or services are provided for the business of selling, displaying, offering for sale, or dealing in motor vehicles. Places of business or departments in a place of business used to dismantle, salvage, or rebuild motor vehicles by means of using used parts, are not considered as being maintained for the purpose of assisting or furthering the selling, displaying, offering for sale, or dealing in motor vehicles. A place of business shall be considered as used exclusively for selling, displaying, offering for sale, or dealing in motor vehicles even though a business owned by a motor vehicle leasing dealer or a motor vehicle renting dealer is located at the place of business. O.R.C. 4517.03(A)
The Ohio Revised Code limits the sale of vehicle to an established place of business. AnUsed motor vehicle dealers are prohibited by statute. O.R.C 4517.03(C). New motor vehicle dealers may display vehicles off-site, within their general market area, whenever: (a) the primary purpose of show is the exhibition of competitive makes and models of motor vehicle to the general public to review at a single location, (2) no less than 30 days before the show, the group requests and receives permission to hold the show from the registrar of motor vehicles, (3) no sales contracts are signed and no deposits are taking at the show location, (4) the show sponsor shall mail invitations to all new motor vehicle dealers in the general market to participate in the show. O.R.C. 4517.22.