Certification for Used Motor Vehicle Dealer Applicants

The 2007 Iowa General Assembly passed Senate File 358, effective July 1, 2007, requiring certification that all used motor vehicle dealer license applicants have met certain educational requirements prior to licensing. The provisions of the law apply to all used motor vehicle dealers, except the following:

• motor vehicle rental companies having a national franchise
• national motor vehicle auction companies
• wholesale dealer-only auction companies
• used car dealerships owned by a franchised motor vehicle dealer
• banks, credit unions and savings and loan associations

The legislation requires that all license applicants attend an 8 hour pre-licensing course prior to submitting their initial dealer license application. Applicants seeking renewal of their current dealer license will be required to take a 5 hour continuing education course. Both courses will focus on state and federal regulations pertaining to retail motor vehicle sales.

All motor vehicle dealer licenses expire on December 31, 2008. Dealers who wish to retain their license must take the 5 hour continuing education course before their license expiration. Failure to do so will require the dealer to file a new license application and pay the required fees.

At least one individual associated with the used motor vehicle dealer as an owner, principal, corporate officer, director or member or partner of a limited liability company or limited liability partnership must complete the required education course.

The legislation authorizes the Iowa Independent Automobile Dealers Association to develop curricula in consultation with the Iowa Department of Transportation, the Iowa Attorney General, the Iowa Association of Community College Trustees, and the Iowa Department of Education. The education program courses will be provided by community colleges or by the Iowa Independent Automobile Dealers Association in conjunction with a community college. Fees will be established by the Department of Education for the class and instructional materials.

The certificate of course completion, or a copy, must be posted conspicuously in the principal office of the dealership. Failure to display the certificate may be grounds for license revocation.

Information relating to class schedules, locations, and fees can be obtained via the web at www.iowaiada.com or http://www.iamvd.com/ovs/index.htm or from the:

Iowa Independent Automobile Dealers Association
PO Box 337
Panora, IA 50216
Ph: 866-962-9202
Fax: 641-755-3247
E-Mail: iiada@netins.net