Section 138.04. Records kept.

  This section establishes the minimum books and records required to be kept and maintained at the licensed business premises by motor vehicle dealers and used motor vehicle wholesalers under ss. 218.0116 (3) and (5) , and 342.16 (2) , Stats., and the required retention periods for those records.

(1)   Dealer required records. Motor vehicle dealers shall maintain, at a minimum, the following books and records:

(a) Ownership records. As evidence of ownership, title for each used vehicle owned and offered for sale and manufacturer's statement of origin, or MSO, for each new vehicle owned and offered for sale. If a manufacturer or lending institution is holding the title or MSO to ensure payment at the time of sale, the dealer shall have for each such vehicle either a factory invoice, a completed dealer reassignment form, or a purchase contract evidencing trade-in or purchase. If the used vehicle is a manufacturer's buy-back under s. 218.0171 , Stats., and the manufacturer holds title to the vehicle, the dealer may have in its possession a copy of the title.

(b) Consignment sale documents.

1. Written consignment agreement between owner and dealer for each vehicle not owned by the dealer and offered for sale by the dealer. Consignments between motor vehicle dealers are prohibited. Nor may wholesalers consign vehicles to motor vehicle dealers. Each consignment agreement shall contain:

a. Date of consignment;

b. Name of consignor and consignee;

c. Description of vehicle including year, make and identification number, a description of the prior use of the vehicle and an odometer disclosure statement as specified in s. Trans 154.08 (1) . The odometer disclosure statement shall be separate from the rest of the consignment agreement;

d. Terms of agreement including duration of agreement, agreed upon minimum selling price at which the dealer is authorized to sell the vehicle for the consignee, the agreed disposition of any amount received for the vehicle above the minimum sales price, and the amount of the dealer's sales commission;

e. A statement by the owner that either the vehicle is clear of any liens, or identifying the lienholder and stating the amount of any outstanding lien balance;

f. Signatures by the vehicle owner and selling dealer; and

g. An agreement between the vehicle's owner and the dealer providing that the dealer will hold the title certificate or a copy of both sides of the original title certificate for inspection by potential purchasers during the period of consignment, and that the title reassignment by the owner portion of the original title certificate will not be signed until the vehicle is actually sold. The agreement shall also provide that if the vehicle is not sold during the duration of the consignment, the dealer will promptly return the title certificate to the owner along with the vehicle.

2. Copies of any documents required to be created under s. Trans 139.08 .

(c) Vehicle condition disclosures. Vehicle general condition disclosure statements, as required by s. Trans 139.04 (4) .

(d) Odometer disclosure. Odometer disclosure statement from prior owner and odometer disclosure statement to subsequent purchaser, as required by s. Trans 139.04 (7) .

(e) Contracts. Original or copy of motor vehicle purchase contracts, as required by s. Trans 139.05 , purchase orders and invoices. Copy of MV1 or MV11, Wisconsin title, registration or license plate application forms, completed for each vehicle purchaser as additional evidence of sale, and information regarding collection of sales tax and Wisconsin title and registration fees, when applicable. If the contract supersedes any prior offer or contract between the parties, copies of the superseded contract as required by s. Trans 139.05 (1) (a) 2.

(f) Dealer record book.

1. The following information shall be kept on every used vehicle, including executive and demonstrator vehicles, bought, sold, exchanged or consigned:

a. Date of acquisition of the vehicle.

b. Name and address of the person from whom the vehicle was acquired.

c. The year, make and vehicle identification number, or VIN, of the vehicle.

d. The date of the disposition of the vehicle.

e. The name and address of the person to whom any vehicle was disposed.

2. Persons requiring a license who do not maintain their records in an electronic data processing record keeping system shall maintain the information required in subd. 1. in a permanently bound book containing consecutively pre-numbered pages with horizontal line ruling. Initial purchase entries shall be made immediately as each vehicle is acquired and sales information entered on the same line at subsequent time of sale. All entries shall be consecutively entered in ink and be legible. No blank horizontal lines shall be allowed. Vertical dividing lines shall be provided, and may be manually drawn, to divide the following information as shown: - See PDF for table

3. Persons requiring a license who maintain their records in an electronic data processing record keeping system shall maintain the information required in subd. 1. in compliance with the following requirements:

a. One record shall contain all of the information specified in subd. 1.

b. Initial purchase entries shall be made immediately as acquired, and sales information shall be completed on the same record at the time of sale.

c. The information shall be accessible for inspection and shall be retrievable electronically by the date acquired, name of person from whom the vehicle was acquired, VIN, date sold, and name of person to whom the vehicle was disposed.

d. All records shall be retrievable during the inspection and a printer shall be kept on site to provide hard copy if requested. Hard copy shall include all information in the same format as specified in par. (f) 2. Horizontal and vertical lines are not required.

e. There is an employee of the person requiring a license available to retrieve the records during the hours of operation of the business.

(h) Electronic record keeping. Persons requiring a license who maintain their used vehicle records as specified in par. (f) in an electronic data processing record keeping system can satisfy the record retention requirement in sub. (3) with hard copy of their records when memory limitations of the electronic system prohibit electronic storage for the specified period. Hard copy shall meet the following requirements:

1. Hard copy shall include only those records of vehicles that have been disposed of. Incomplete records of vehicles acquired and still in inventory must be maintained on the electronic system until disposed of and the record is completed.

2. Hard copy shall include all information in the same format as specified in par. (f) 2. Horizontal and vertical line ruling shall not be required.

3. Hard copy shall be printed in the order of the date acquired and each report shall contain at least 12 consecutive months of vehicle acquisitions.

4. Hard copy shall contain system generated page numbers and the current date on every page.

(2)   Wholesaler required records. Motor vehicle wholesalers (used vehicles) shall maintain those books and records included in sub. (1) (a) , (d) and (f) for the period specified under sub. (3) . The records and books to be maintained are limited to used vehicle record books, invoices, dealer reassignment forms, regular and conforming power of attorney forms, prior owner odometer disclosure statements and wholesaler's subsequent odometer disclosure statements.

(3)   Retention requirements. The used vehicle information described in sub. (1) (f) shall be maintained for a period of 5 years, as required by s. 342.16 , Stats., and all other required records shall be maintained for a period of 5 years from the date of sale, including copies of factory invoices, dealer reassignment forms, consignment agreements, purchase contracts, MV1 or MV11 Wisconsin title, registration or license plate applications, Wisconsin buyers guides, regular and conforming power of attorney forms, prior owner odometer disclosure statements, dealer's subsequent odometer disclosure statements, lessor's notices to lessees relating to odometer disclosure required at end of lease, and lessee's odometer disclosure statement completed at end of lease. The records shall be kept in the place of business during business hours and shall be open to inspection and copying by a representative of the department during reasonable business hours. Multi-location dealerships may keep records at a single location. If the location is out of state, the dealerships shall reimburse the department for actual and necessary expenses, plus wages pursuant to the appropriate state compensation plan or applicable labor agreement for examining the documents at that location. The actual and necessary expenses charged include the following:

(a) Travel expenses.

(b) Meal expenses.

(c) Lodging expenses.

(d) Telephone expenses.

(e) Copying and data processing expenses.

History: Cr. Register, May, 1966, No. 125 , eff. 6-1-66; r. and recr. Register, April, 1977, No. 256 , eff. 5-1-77; renum. from MVD 13.02 and am., Register, July, 1981, No. 307 , eff. 8-1-81; am. (1) (c) to (e), Register, December, 1982, No. 324 , eff. 1-1-83; am. (intro.) (1) (b) 5. and 6., r. (1) (b) r. and (2), renum. (3) to be (2), Register, October, 1984, No. 346 , eff. 11-1-84; am. (1) (b), cr. (1) (b) 7., Register, June, 1991, No. 426 , eff. 7-1-91; am. (1) (b) 3., (d), (g) and (2), renum. (1) (f) to be (1) (f) 2., cr. (1) (f) 1. and 3. and (h), Register, January, 1996, No. 481 , eff. 2-1-96; CR 99-135 : am. (intro.), (1) (intro.), (a), (b) (intro.), (e) and (2), renum. (1) (b) 1. to 7. and (g) to be (1) (b) 1. a. to g. and (3) and am. (1) (b) 1. g. and (3), cr. (1) (b) 2., Register February 2004 No. 578 , eff. 3-1-04; correction in (1) (h) (intro.) made under s. 13.93 (2m) (b) 7., Stats., Register February 2004 No. 578 ; CR 08-029 : am. (1) (a) and (3) Register August 2008 No. 632 , eff. 9-1-08.

Note

Section 218.0171 , Stats., is commonly known as the lemon law. Microsoft Windows NT 6.1.7601 Service Pack 1 The current Wisconsin Title and License Plate Application forms used by dealers is form MV-11, which may be purchased from motor vehicle dealer form supply companies. MV-1 is used by the general public for this purpose and is available from motor vehicle service centers or on the Internet at http:\www.dot.state.wi.us Microsoft Windows NT 6.1.7601 Service Pack 1