SOS Says: Stop Your Stamping-For Now
Now that IADA has sent you no fewer than four bulletins about stamping NOT FOR RESALE WITHIN ILLINOIS on the titles of vehicles sold to out of state dealers and wholesalers, it is time to stop. SOS sent out a memo suspending the title stamping protocol, click here.
Translated, starting October 15, 2019, if a dealer sells a vehicle weighing less than 12,000 pounds with a sale price of under $5,000 directly to an out of state dealer or out of state wholesaler (vehicles formerly subject to the title stamp protocol), the dealer must mail the title to the physical street address (NOT to a PO Box) of the place of business of the purchasing dealer or wholesaler. The selling dealer cannot hand deliver the title to an affected vehicle, stamped or unstamped, to the purchaser. Because the SOS has replaced title stamping with title mailing, out of state dealers will once again be able to assign Illinois titles and will not need to retitle the vehicles in the dealership's name.
The SOS bulletin goes on to reiterate that out of state dealers and wholesalers that do not have an Illinois dealer's licenses are prohibited from selling vehicles from Illinois locations.
Please do not throw away your brand-new stamps just yet. If mailing titles to out of state dealers and wholesalers does not solve the problem of disreputable curbstoners skirting Illinois dealer licensing laws to prey on Illinois customers, SOS may reconsider the stamp protocol.
SOS Guidance on TRPs and Title Applications
In other SOS memo news, SOS issued the following directive, which it has been including with TRP shipments: click here.
The purpose of this memo is to make sure that dealers understand that issuance of a TRP or submission of a title and registration application constitutes a sale under the Illinois Vehicle Code, regardless of whether financing has been secured. Dealers who intend to spot deliver a vehicle, pending the customer's ability to obtain financing, should leave the vehicle on a dealer plate and should not apply for title and registration, nor should they issue a TRP.
This memo also reminds dealers that, once a TRP has been issued or a title has been applied for, a dealer cannot proceed to repossess the vehicle from the customer unless the dealer has perfected the lien on that vehicle by submitting the title application to SOS.