Section 1020.10  Dealers Established Place of Business

 

a)         Each person or entity seeking to be or already duly licensed as a new or used vehicle dealer under the Illinois Vehicle Code (IVC) [625 ILCS 5] shall maintain an established place of business that shall, in addition to those requirements in IVC Section 5-100, meet the following requirements:

 

1)         Have office facilities in a building for maintaining and keeping books and records as are required.  The office facilities shall be permanently mounted on a fixed foundation and may not include a trailer with axle attached and still moveable.  It may include, however, a house trailer in a licensed mobile home park or dealership lot with tires removed and utilities attached.

 

2)         Be properly and permanently equipped with the necessary office equipment and machines and documents and papers adequate to properly conduct business as a dealer and must be within a permanent building or structure as required in subsection (a)(1).

 

3)         Be equipped with an operating telephone for inbound and outbound calls, have the business telephone number published in the telephone directory generally available in the dealership area, and be adequately equipped with operating electric lights.

 

4)         Have the name of the dealership posted on the front entrance door.

 

5)         Have posted on the front entrance door a sign setting forth the days and regular and reasonable hours when open for business.  A dealership shall not be deemed as being open for business unless at least one employee, who is able to conduct regular business, is on the premises and available to the public.  The dealership must be operated consistent with general dealer practices.  The dealership must be open for business at least 5 days out of each 7 days in a week, and a minimum of 4 consecutive hours per day.  However, dealers who operate their dealerships less than 12 months shall state in the license application those months in which the dealership is closed and shall not be required to maintain regular business hours during the period of closure.  The months of closure shall also be posted in a prominent place for the public to see in the dealership office.

 

6)         Maintain a lot (the area not occupied by a building) that shall be surfaced with rock or better surface material, and that shall be properly illuminated, if open after sundown, so that vehicles for sale can be properly inspected by any prospective customer.

 

A)        The lot used for sale of vehicles shall be separate and apart from any other business.  In addition, if a dealer is selling both new and used cars, the new cars shall be parked separately and apart from used cars.

 

B)        The lot requirement described in this subsection (a)(6) shall not be applicable if the place of business has an indoor showroom, properly illuminated, for the display of vehicles held for sale.

 

C)        The separate lot requirement specified in subsection (a)(6)(A) shall not prohibit the operation by the dealer of other businesses on the same premises, which shall include the lot, provided that the businesses are reasonably related to the sale or operation of new or used automobiles, if the sale of new or used automobiles constitutes at least 50% of the gross revenues of the license holder.  Businesses reasonably related to the sale or operation of automobiles shall include only the sale of automobile parts and accessories, the sale of gasoline, diesel fuel, oil and lubricant, the sale of automobile tires, the leasing of automobiles, insuring automobiles, and financing of automobiles sold by the licensed dealers engaged in these businesses.  Licensed dealers engaged in operating businesses other than those stated in this subsection (a)(6)(C) shall remove unauthorized businesses or modify them to comply with this Section within 60 days after notification by the Secretary of State, or be subject to the revocation or suspension of their dealer's license.

 

7)         Dealership in a Department Store − When a dealer maintains a place of business within a department store, the dealership shall be separated from other operations of the department store.

 

8)         Sign – Display a permanent sign bearing the name of the dealership, which shall be properly illuminated if open after sundown and which shall be visible from the highway, as defined at IVC Section 1-126, leading to the established place of business.

 

9)         Display a federally required pricing document on all new motor vehicles held for sale.

 

10)         If the premises are leased, the lease must be for at least the duration of the current licensed period.

 

b)         Supplemental Lots

            An Illinois licensed dealer may operate as an additional place of business a permanent supplemental lot that meets all the requirements of subsection (a), except the records required to be kept shall be maintained at the principal place of business of the dealership, as defined by IVC Section 1-164, unless the supplemental lot is more than one mile from the main dealership.  The one mile shall be measured by the most direct road between the dealership and the supplemental lot.

 

1)         A licensed dealer shall apply for the supplemental lot authorization when he/she files the application required by IVC Section 5-101 or 5-102 or he or she may file an application to add a supplemental lot during the license period.

 

2)         The fee for a license to operate a supplemental lot is $25 or $12.50 as provided in IVC Sections 5-101(b)(7) and 5-102(b)(5).

 

3)         No vehicle sales at supplemental lots shall be allowed on Sundays except as provided for in IVC Section 5-106.

 

c)         Trade Show Exhibition, Display Exhibition and Off Site Sale

            A licensed dealer may operate as an additional place of business an exhibition area in a trade show exhibition, display exhibition or off site sale, provided:

 

1)         The trade show exhibition, display exhibition or off site sale must be conducted separately and away from the licensed dealer's established and additional places of business.

 

2)         The licensed dealer has a currently valid new or used vehicle dealer's license issued by the Secretary of State of Illinois or another state where applicable.

 

3)         The applicant dealer meets the requirements of subsection (c)(7), (8) or (9).

 

4)         No permit granted for an additional location in a trade show exhibition, display exhibition or off site sale may be transferred or removed to another location.

 

5)         Regardless of the dates of the trade show exhibition, display exhibition or off site sale, no vehicle sales will be allowed on Sunday except as provided for in IVC Section 5-106.

 

6)         The licensed dealer has provided the Secretary of State with a copy of:

 

A)        the written contract with the agency, person or other entity sponsoring, creating or supervising the trade show exhibition, display exhibition or off site sale; and

 

B)        an application for the trade show exhibition, display exhibition or off site sale permit:

 

i)          containing the name of the dealership, its license number, the location and dates of the trade show exhibition, display exhibition or off site sale; and

 

ii)         signed by the licensed dealer.

 

7)         Trade Show Exhibitions

 

A)        A permit for an additional location granted for a trade show exhibition shall in no event be valid for more than 30 days from the date of the first day of the trade show exhibition for which it is granted.

 

B)        The fee for a permit to operate in a trade show exhibition shall be $10.00 per permit.

 

C)        No vehicles may be offered for sale.

 

D)        Each trade show exhibition must have a minimum of 3 licensed participants, at least two of whom must be licensed under IVC Section 5-101 or 5-102, who all meet the requirements in subsections (c)(1) through (6).

 

E)        A trade show exhibition of new vehicles shall only have participants licensed as new vehicle dealers, at least two of whom must be licensed under IVC Section 5-101 and meet the requirements in subsections (c)(1) through (6).

 

8)         Display Exhibitions

 

A)        Only a new or used vehicle dealer licensed under IVC Section 5-101 or 5-102, who also meets the requirements of subsections (c)(1) through (6), may participate in a display exhibition.

 

B)        A permit for an additional location granted for a display exhibition shall in no event be valid for more than 30 days from the date of the first day of the display exhibition for which it is granted.

 

C)        The fee for a permit to operate in a display exhibition shall be $10.00 per permit.

 

D)        No vehicles may be offered for sale.

 

9)         Off Site Sales

 

A)        Only a dealer licensed under IVC Section 5-101 or 5-102, who also meets the requirements of subsections (c)(1) through (6), may conduct an off site sale.

 

B)        The off site sale must not be conducted out of the licensed dealer's relevant market area, as defined in IVC Section 5-100.  This does not apply to off site sales of motor homes or recreational vehicles.

 

C)        A permit for an additional location granted for an off site sale shall in no event be valid for more than 7 days from the date of the first day of the off site sale for which it is granted.

 

D)        The fee for a permit to operate an off site sale shall be $25 per permit.

 

d)         Each person seeking to be or already duly licensed as a scrap processor, automotive parts recycler, rebuilder, repairer or out-of-state salvage buyer under the IVC shall maintain an established place of business that meets the requirements of subsection (a), except that no lot as set forth in subsection (a)(6) is required.  However, if open after sundown, the premises shall be adequately illuminated so that prospective purchasers may inspect the items held for sale.

 

e)         In lieu of a criminal complaint, the Secretary of State Department of Police may issue an administrative citation to a party licensed under IVC Chapter 5 for any violation of the IVC or any administrative rule adopted by the Secretary under the IVC.  If an administrative citation is issued, then a minimum of 3 separate violations must be present at the time of the investigation or inspection and any violations shall result in a $50 penalty per violation.  Any party that receives an administrative citation that results in a monetary penalty may either pay the penalty or contest the administrative citation through the Secretary's administrative hearing process (see 92 Ill. Adm. Code 1000.Subpart A).  If a licensee agrees to pay the administrative citation, the licensee waives his or her ability to contest the administrative citation through the administrative hearing process.  If a licensee pays the penalty as a result of an administrative citation but receives subsequent administrative citations pursuant to a subsequent investigation or inspection, and the licensee disputes the subsequent administrative citations through the administrative hearing process, the Secretary may use any previous administrative citations as evidence to establish a pattern or habit of violations.  A licensee shall have 90 calendar days after receiving the administrative citation to either pay the penalty or file a request for an administrative hearing. Failure to either pay the administrative citation or file a timely request for an administrative hearing may result in the denial of a license renewal until the penalty is paid in full or an administrative hearing is scheduled to adjudicate the contested administrative citations.

 

f)         None of the requirements of this Section shall apply to the place of business of a vehicle auctioneer licensed under IVC Chapter 5, Article VII.

 

(Source:  Amended at 38 Ill. Reg. 2291, effective December 26, 2013)

 

Section 1020.15  Buy Here, Pay Here Dealers

 

a)         For the purposes of this Section, a Buy Here, Pay Here used vehicle dealer (BHPH) means any entity that engages in the business of selling or leasing of vehicles and finances the sale or purchase price of the vehicle to a customer without the customer using a third-party lender (IVC Sec. 5-102.8(a)). This is done by using a financial institution in which the BHPH has an ownership stake.  By contrast, the third-party lenders used by non-BHPH dealers licensed under the IVC are not legally or financially associated with the BHPH.

 

b)         A BHPH shall only be required to acquire one license under IVC Section 5-102.8, which would permit the BHPH to sell and/or lease 5 or more used vehicles per year.

 

c)         A BHPH may have a separate legal entity, in which the owner of the dealership has an interest, that provides financing solely for customers of the BHPH.  A BHPH may sell a vehicle for cash or by other traditional financing methods.  However, the promotion, advertisement, solicitation, and general engagement in the sales transactions performed by the BHPH and its associated financing entity must reflect that the customer may purchase the vehicle on a payment plan basis, within a specified period of time, from the associated financing entity in which the BHPH has a financial stake.

 

d)         Each BHPH is required to submit the appropriate certificate of title and registration fees and taxes to the Secretary of State (SOS) and the Department of Revenue, respectively, for each sales or lease transaction, with the application for certificate of title and registration reflecting the date of purchase the customer agreed to the terms of the sale or lease and took possession of the vehicle, regardless of how the sale was financed or the vehicle was transferred to the customer.

 

e)         Beginning January 1, 2020, all BHPH must electronically submit titling and registration applications to SOS, either through an ERT program or online through the SOS website:  cyberdriveillinois.com/departments/vehicles/title_

and_registration/pert.html.

 

(Source:  Added at 44 Ill. Reg. 2037, effective December 31, 2019)

 

Section 1020.20  Required Records For Automotive Parts Recyclers Rebuilders, New Vehicle Dealers, Used Vehicle Dealers, Repairers and Out-of-State Salvage Vehicle Buyers

 

Each person or firm licensed pursuant to Sections 5-301 (excluding Scrap Processors), 5-302, 5-101 or 5-102 of the Illinois Vehicle Title and Registration Law (the Act) of the Illinois Vehicle Code (Ill. Rev. Stat. 1987, ch. 95˝, pars. 5-301, 5-302, 5-101 and 5-102) is required to maintain for a period of three years subsequent to the acquisition, disposal, wrecking, rebuilding or junking of vehicles or essential parts thereof, a uniform record of such transactions at his principal place of business.  Such records shall be kept in a bound ledger or electronic data processing system.  The "Police Book" shall be double-entry reflecting the required information at the time of acquisition and at the time of disposal.  The required information shall be, but without limitation, as required hereunder.

 

a)         Upon the Purchase, Receipt, or Acquisition or Disposal of Vehicles, Essential Parts pursuant to Section 1-118 of the Illinois Vehicle Code (IVC) (Ill. Rev. Stat. 1987, ch. 95˝, par. 1-118) the following information must be recorded from the records kept on file at the licensee's established place of business in a legible form.  A separate record shall be kept for each vehicle or essential part and shall be open to inspection at any reasonable hour as allowed by Section 5-403(4) of the Illinois Vehicle Code (Ill. Rev. Stat., 1987, ch. 95˝, par. 5-403(4)) by any authorized representative of the Secretary of State or any peace officer:

 

1)         The name, address, and verification of same, of the person from whom the vehicle or essential part was acquired.  If that person is a dealer, the Illinois or Out-of-State dealer license number of such person shall be recorded.  Verification shall be by an Illinois Driver's License, and one other type of identification.

 

2)         The date and type of acquisition or disposal (i.e. sale, exchange, etc.)

 

3)         A description of the vehicle or essential part, including:

 

A)        The year, make, model, style and color of the vehicle or essential part;

 

B)        The manufacturer's identification number, the Secretary of State of Illinois or Illinois Department of State Police's identification number, or if applicable, the derivative or essential part assigned number;

 

C)         The year, make, model and manufacturer's identification number of the vehicle from which the essential part was removed.

 

4)         Documentary proof of ownership consisting of the following documents:

 

            A)        Uniform Invoices;

 

B)        Certificates of title, salvage certificates, junking certificates;

 

C)        Receipts or bills of sale; or,

 

D)        Other acceptable documentary evidence of right of possession;

 

5)        The signature of the person making the inspection of a used vehicle as required under subsection (d) of this Section, if applicable;

 

6)        The name and address of the person to whom any vehicle or essential part was disposed, and if that person is a dealer, the Illinois or out-of-state dealer license number of that dealer;

 

7)        The uniform invoice number reflecting the disposition of the vehicle or essential part.

 

b)        It shall be the responsibility of every licensee hereunder to inspect every vehicle or essential part acquired.  If there is any evidence that any serial number thereon has been removed, altered, defaced or destroyed, the licensee shall notify the Secretary of State.

 

c)         Licensees who do not maintain electronic data processing record-keeping systems shall maintain, for three years, the information required to be recorded by Section 5-401.2(a) of the Act (Ill. Rev. Stat. 1987, ch. 95˝, par. 5-401.2(a)) (as amended) in separate bound ledger books of a double entry type to be titled as follows:

 

1)         New Vehicle;

 

2)         Used Vehicle;

 

3)         Essential Parts;

 

4)         Rebuilt Vehicles;

 

5)         Junked Vehicles.

 

d)         Licensees who maintain their records in an electronic data recordkeeping system shall maintain, for three years, the information required to be recorded by Section 5-401.2(a) of the Act as amended which must be accessable for inspection by the vehicle identification number either directly or indirectly through the association of the vehicle identification number with another identification number:

 

1)         All electronic records must be retrievable during the inspection;

 

2)         There shall be an employee of the licensee available to retrieve the records during the hours of operation of the business.

 

e)         Separate records for each vehicle or essential part shall be kept. Such records shall be clearly legible and open for inspection at any reasonable time by any authorized representative of the Secretary of State or any peace officer.  The Secretary of State may prescribe forms for the maintenance of such records.

 

f)         Any person or firm who violates or fails to comply with the provisions of this rule may have his license denied, revoked or suspended in accordance with Section 5-501 of the Act as amended.  Hearings to contest such action shall be held in accordance with Section 2-118 of the Illinois Vehicle and Registration Law of the Illinois Vehicle Code (Ill. Rev. Stat. 1987, ch. 95˝, par. 2-118) as amended and 92 Ill. Adm. Code 1001. Subpart A.

 

(Source:  Amended at 12 Ill. Reg. 17962, effective November 1, 1988)

 

Section 1020.30  Records Required Upon Removal of Dash Assemblies with Vehicle Identification Number Plate Attached

 

To avoid committing a violation of 625 ILCS 5/4-103(a)(2), (a)(4) or (a)(5), the licensee shall:

 

a)         obtain a Junking Certificate in their name prior to beginning the dismantling process.

 

b)         mark each essential part with the full vehicle identification number.

 

c)         upon selling the dash assembly and other essential parts from the vehicle, provide the purchaser with a copy of the Junking Certificate and a bill of sale which is notated with the specific information required by 625 ILCS 5/5-402.1(b).

 

(Source:  Added at 20 Ill. Reg. 11356, effective August 1, 1996)

 

Section 1020.40  Inspection of Licensees' Records and Premises

 

Upon the inspection of the records and/or records and premises of any person licensed under the provisions of Chapter 5 of the Illinois Vehicle Code, the authorized representative of the Secretary of State or other peace officer making the inspection shall sign and date the police book or books inspected on the inside of the front cover and indicate his/her badge number and agency.  The reason for the inspection shall be entered only if a court document was issued for the inspection (the document could be a search warrant, grand jury subpoena, etc.).  Each inspection will require a report from the inspecting representative to his agency defining what was inspected.  This report shall be retained one year by the originating agency.

 

(Source:  Added at 7 Ill. Reg. 5260, effective April 4, 1983)

 

Section 1020.50  Consignment Sales by Dealers

 

a)         Definitions.  For purposes of this Section, the following words shall have the following meanings:

 

"Consignment Agreement" is an agreement between the owner of a vehicle, known as the consignor, and a licensed vehicle dealer, known as the consignee, wherein the owner delivers physical possession of the vehicle to the dealer for the specific purpose of having the dealer sell the vehicle for the owner and also with the intent that if the vehicle is not sold by the dealer, it is to be returned to the owner.

 

"Letter of consignment" is the written document evidencing the consignment agreement between the vehicle owner and the dealer, which authorizes the dealer to have possession of the vehicle.

 

"Odometer reading" is the actual reading of the odometer of the vehicle at the time of the signing of the consignment agreement.  This odometer reading shall not relieve the parties of complying with the federal odometer statement requirements found in 15 U.S.C. 1981 et seq., 1982, nor the separate and distinct Illinois odometer statements requirements found in Section 3-112.1 of the Illinois Vehicle Code (Ill. Rev. Stat. 1983, ch. 95˝, par. 3-112.1).

 

"Ownership document" is a certificate of title, a salvage certificate, a junking certificate, or a similar document issued by the State of Illinos or another state, which evidences ownership according to the laws of the state of issuance.

 

b)         Documents required.  In any transaction whereby a dealer agrees to enter into a consignment agreement involving a vehicle which is required to be titled and licensed in this state, the dealer must secure and have in his possession the following documents:

 

1)         a letter of consignment;

 

2)         the proper ownership document as defined in paragraph (a) above; if that document is in the possession of a lienholder, then a photostatic copy of that document;

 

3)         a power of attorney authorizing the dealer to assign the ownership document and also to apply for a duplicate ownership document should the original be lost, stolen, or mutilated.

 

c)         Letter of consignment – contents.  The letter of consignment shall contain the following information:

 

1)         the year, make, model, color and odometer reading of the vehicle;

 

2)         the vehicle identification number;

 

3)         the type, number and state of issuance of the ownership document;

 

4)         The names and addresses of all lienholders;

 

5)         the name and address of the person in possession of the ownership document;

 

6)         the date the vehicle was received by the dealer;

 

7)         the owner's full name, address, phone number, and driver's license number. If the owner is a natural person and does not have a driver's license, then date of birth must be given;

 

8)         the dealer's name, address and Illinois dealer's license number;

 

9)         A heading that contains the word "CONSIGNMENT" all in capital letters at least one-eighth (⅛) of an inch in height;

 

10)         the specific terms of the consignment as agreed to by the parties;

 

11)         any other information the parties deem necessary;

 

12)         The signature of the owner and the dealer or his authorized agent affirming that the information contained in the letter of consignment is true and is true and correct and that the ownership documents agree with a physical inspection of the vehicle.

 

d)         Any transaction to which this Section applies must also be reflected in the records required to be kept by the dealer in accordance with Section 5-401 of the Illinois Vehicle Code (Ill. Rev. Stat. 1983, ch. 95˝, par. 5-401).

 

e)         Noncompliance with this Section shall be deemed a violation of Section 5-401(b) of the Illinois Vehicle Code (Ill. Rev. Stat. 1983, ch. 95˝, par. 5-401(b)).

 

(Source:  Added at 8 Ill. Reg. 22884, effective November 16, 1984)

 

Section 1020.70  Rebuilders Not to Engage in Retail Selling of Salvage or Rebuilt Vehicles

 

Rebuilders licensed under Section 5-301 of the Illinois Vehicle Title & Registration Law of the Illinois Vehicle Code shall not engage in the retail selling of salvage or rebuilt vehicles at the rebuilder's established place of business unless they are licensed as a new car dealer or used car dealer as provided in Sections 5-101 or 5-102 of the Illinois Vehicle Title & Registration Law of the Illinois Vehicle Code.  Nothing herein shall prohibit a rebuilder from selling four or less used vehicles at any location other than the established place of business.

 

(Source:  Added at 14 Ill. Reg. 8704, effective June 1, 1990 )

 

Section 1020.80  Inspection of Rebuilt Vehicles

 

a)         Persons requesting an appointment with the Secretary of State Department of Police for the inspection of a rebuilt salvage vehicle will be given the name and address of the nearest safety lanes.

 

b)         In addition to the requirements of Sections 3-303 and 3-304 of the Illinois Vehicle Code, the following documents shall be submitted:

 

1)         A properly assigned Illinois Salvage Certificate, a foreign salvage title/certificate capable of being registered in Illinois, or a letter from the Administrator of the Secretary of State Vehicle Title Division authorizing the inspection of non-licensed applicants.

 

2)         A completed title application for a rebuilt vehicle with the licensed rebuilder's name exactly as it appears on the certificate of authority.

 

3)         Affirmation form RT-11.13 (or any subsequent form issued by the Secretary of State which fulfills the same purpose) completed with the name exactly as it appears on the certificate of authority.  The affirmation shall include:

 

A)        A list of all used essential parts identified by vehicle identification number and from whom the parts were acquired;

 

B)        A list of all new parts identified by bill of sale or invoice; and

 

C)        The signature of the applicant and/or the licensed rebuilder.

 

4)         Proof of Ownership documents of essential parts, including, but not limited to:

 

A)        invoices, bills of sale, Uniform Invoice for Essential Parts forms (rebuilders may duplicate forms provided by the Secretary of State), junking certificates or other ownership documents which are notated with the year, make, and vehicle identification number on the documents for all used essential parts;

 

B)        invoices for new essential parts which were used in the rebuilding of the salvage vehicle; and

 

C)        a copy of the work order for the reclaimable part and the receipt for the replacement part which was installed on the vehicle described on the work order.  For purposes of this Section, a "reclaimable" part is a damaged part which has been removed from a vehicle undergoing repair by a licensee which can be re-used, repaired for re-use or salvaged, e.g., fender that was removed and repaired or salvaged, then installed on a rebuilt vehicle.

 

c)         The person bringing the vehicle to the inspection station shall be required to:

 

1)         show proof of a valid Illinois registration for the vehicle (dealer plates or a 72 hour permit);

 

2)         display a valid driver's license to the SVIS Investigator who will check through LEADS/NCIC/CRT to verify its validity. If suspended or revoked, the licensee will be required to provide a driver with a valid license;

 

3)         open the trunk or hood, as required, to provide accessibility to identification numbers; and

 

4)         leave the inspection area during the physical inspection of the vehicle.

 

d)         A request for the inspection of a salvage vehicle will be denied if:

 

1)         there is improper documentation for the essential parts;

 

2)         there is incorrect documentation for the essential parts;

 

3)         documents are missing;

 

4)         the documents are illegible;

 

5)         the vehicle is missing essential parts;

 

6)         the vehicle is rebuilt using damaged parts;

 

7)         the vehicle is incomplete; or

 

8)         the rebuilder is not properly licensed or does not have a letter from the Administrator of the Secretary of State Vehicle Title Division.

 

e)         A vehicle may fail an inspection if:

 

1)         insufficient or incorrect documentation is discovered after the inspection  is started and the problem cannot readily be corrected;

 

2)         the identification numbers are ground away, defaced, mutilated, restamped or removed;

 

3)         contraband or stolen essential parts are installed on the vehicle. The vehicle may be held pending further investigation;

 

4)         a junking or salvage certificate is not properly assigned to the seller for all essential parts purchased from an Illinois licensee; or

 

5)         a reclaimable part is not accompanied by the proper documentation.

 

f)         A fee of $75 will be charged for each inspection started or completed. The fee will be returned if the request for an inspection is denied and the physical inspection has not started.

 

g)         All Salvage Vehicle Inspection Reports must be signed by the on-site Secretary of State auto body specialist and approved by the Secretary of State investigator in charge of the station.

 

h)         No vehicle shall be inspected without an appointment unless there is express approval of the investigator in charge of the station.

 

(Source:  Added at 22 Ill. Reg. 11527, effective July 1, 1998)