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Subchapter K: Dealers in Second-Hand Articles
It shall be the duty of every second-hand dealer to verify the identity of every person from whom he purchases an article, and to make and keep a written record of the nature of the evidence submitted by such person to prove his identity. Only the following shall be deemed acceptable evidence of identity:
(a) Any official document issued by the United States government, any state, county, municipality or subdivision thereof, any public agency or department thereof, or any public or private employer, which requires and bears signature of person to whom issued.
(b) Police, fire department and postal department badges containing numbers.
In addition, and in every case, it shall be the duty of every second-hand dealer, to require that every person from whom he purchases an article, sign his name in the presence of the second-hand dealer, compare the signature with the signature on the identifying document and retain on his premises the person's signature together with the number and description of the identifying document.
(a) The words "discount," "finance," "credit," or others of similar meaning, shall not be used as part of a firm, trade or corporate name or title unless the licensee is actually engaged in the financing for other firms of installment or other purchases of furniture.
(b) The words "warehouse," "storage," "unclaimed," or others of similar meaning, shall not be used as part of a firm, trade or corporate name or title unless the principal business of the licensee is the actual storage of furniture for hire in a recognized storage warehouse.
(c) The words "railroad," "unclaimed freight," or others of similar meaning, shall not be used as part of a firm, trade or corporate name or title unless the licensee is actually a department of a railroad.
(d) No licensee shall sell or advertise for sale furniture from a private residence under any circumstances, nor shall he be affiliated with, or knowingly provide furniture to, any dealer selling furniture to the public from a private residence.
(e) No licensee shall conduct any sale under the name of "auction sale" unless an auctioneer, duly licensed by the City of New York, is employed to conduct such sale. Such auction sale must be bona fide and without reserve and in all other ways must comply with the laws relating to auctions.
(f) New, used or reconditioned furniture, respectively, must be advertised and sold as such.
(g) The restrictions applying to the use of certain words as part of a firm, trade or corporate name or title of licensees apply equally to the misleading use of the said words in advertising. Licensees will be held to strict accountability for any misleading or false advertising, and the use of such shall be grounds for disciplinary action on the license.
(a) Every sale must be evidenced by a bill of sale, receipted invoice, or other evidence of transferring title, which must contain the following information:
(1) Name, motor and serial numbers of car sold.
(2) Year of manufacture as given in the Used Car Guide provided by the National Automobile Dealers Association.
(3) Cash-selling price and/or time selling price, setting forth finance charges and exact method of payment.
(4) Allowance on car traded in, if any, and description by year, make, motor and serial numbers of same.
(5) If a dealer has serviced, repaired or replaced the odometer, such fact must be stated.
(b) No car shall be sold or offered for sale by any dealer on deferred payments except on the security of the car itself. No other property whatever is to be used as collateral. If financed by a finance company recommended by the dealer, the dealer must first acquaint the purchaser with the precise terms which such finance company is entitled by law to charge, including nature of collateral, interest rate, and other charges, if any.
(c) No automobile dealer licensed by this Department shall sell or offer for sale a motor vehicle or motorcycle, the motor or serial number of which shall have been so covered as to be effectually concealed.
(d) In any case where a dealer shall purchase a car from a private person (not a dealer in automobiles) and pay for same in full or in part with notes, postdated checks, or by deferred payments, the failure to meet such payments shall be ground for punishment of the licensee by the imposition of a fine or the suspension or revocation of his license.
(e) Licensees will be held responsible for statements, representations, promises or acts of agents, representatives or salesmen on or away from the premises of the licensee.
(f) No dealer in second-hand automobiles shall request or oblige any purchaser to sign any undertaking unless all the facts are set forth in the said undertaking or agreement before signature and a line shall be drawn from the last word of the undertaking to the signature of the purchaser. No notation made after the drawing of the line above referred to shall be binding upon the purchaser unless initialed by both the purchaser and the dealer.
(g) (1) (i) No dealer shall sell or offer for sale to a person other than another dealer a second-hand automobile unless such second-hand auto mobile has been inspected in accordance with § 301 of the Vehicle and Traffic Law and certified in accordance with § 417 of the Vehicle and Traffic Law.
(ii) All contracts for sale of second-hand automobiles shall contain the following, in type which is 10 point or larger in scale, on that face of the contract to which the buyer's signature is affixed:
NYC DEPARTMENT OF CONSUMER AND WORKER PROTECTION LICENSE NO. (INSERT DCWP LICENSE NUMBER). IF YOU HAVE A COMPLAINT ABOUT THIS BUSINESS VISIT NYC.GOV/DCWP OR CONTACT 311.
(iii) No dealer shall include terms in a contract for sale of a second hand automobile to a buyer other than another dealer which purport to limit the dealer's responsibility under § 417 of the Vehicle and Traffic Law or under this regulation. Impermissible limitations shall include, but not be limited to, sale of the automobile "as is," with a disclaimer of warranties, or with a term or terms limiting the dealer's duty to repair, or pay for the repair of, defects existing at the time of sale to a portion of the total cost of parts and labor.
(2) No dealer shall misrepresent the mileage of a used motor vehicle which he is offering for sale or exchange by changing the odometer of a used motor vehicle so as to show a lesser mileage reading than recorded by the instrument; provided, however, that this shall not be construed to prevent the service, repair or replacement of an odometer which, by reason of normal use, wear, or through damage, requires service, repair, or replacement. In the event of service, repair or replacement of the odometer by the dealer, the mileage and reading therein shall be set at zero mileage, after such service, repair or replacement.
(h) In connection with the purchase of a used car, it shall be the duty of every licensed dealer to make a thorough investigation as to the use to which such car has previously been put, and if found to have at any time been used as a public hack or taxicab, such fact shall be duly recorded with all other facts in connection with such purchase and any future purchaser or prospective purchaser of the said car shall be so informed. The dealer shall also include as a part of his investigation and the record to be made by him the last previous registration of the car, regardless of the State in which such previous registration occurred. The dealer shall also keep a record of the odometer reading at the time of purchase by him of a used car.
(i) The selling price of an automobile by a licensed second-hand dealer shall be the price advertised, cited, quoted or marked thereon. It shall include all charges connected with the sale of said automobile and shall be the maximum charge to the purchaser. It shall be a violation of this regulation for any licensee to exact a service charge, house commission or any such like assessment above the selling price of the car. This regulation shall not affect any charges that may be made by a finance company for financing the purchase of an automobile.
(j) Any licensee who acts as a broker, agent, or for the account of another person, or participates in any way, in the sale of a second-hand automobile, will be held responsible for such sale as if he were the principal. No licensee shall allow or permit any person not licensed as a dealer in second-hand automobiles to sell or offer for sale at or from the licensee's place of business any second-hand automobile, unless such automobile is the property of the licensee.
(k) Deposits.
(1) No dealer nor any person acting as his agent or employee (hereinafter referred to as the "Dealer") shall accept a deposit unless the following conditions are met:
(i) Said deposit obligates the Dealer to refrain for a specified period of time, from offering for sale to any other person the automobile in relation to which the deposit has been made by the customer; and
(ii) The Dealer has not accepted a prior deposit from any person which is still binding upon the Dealer, unless the Dealer so informs the person from whom he accepts a deposit.
(2) All deposits accepted by a Dealer shall be evidenced by dated receipt stating the following information:
(i) Description of automobile, including make, color, and year of manufacture; (ii) Cash-selling price and/or time selling price, finance charges and method of payment;
(iii) Allowance on automobile to be traded in, if any;
(iv) Time during which the option is binding; and
(v) Whether said deposit is refundable and under what conditions.
(3) Each Dealer in second-hand automobiles shall keep a record of deposits on second-hand automobiles offered for sale. The record shall indicate the date of the receipt of the deposit, the amount, the name and address of the payor, the receipt number, a description of the automobile upon which the deposit has been made, and a statement of the disposition of the deposit at the conclusion of the transaction setting forth whether the deposit has been applied to a sales contract or has been refunded to the payor, or otherwise used.
(4) Failure to keep records in accordance with 6 RCNY § 2-103(k)(2) and (3) shall be presumptive evidence that the Dealer has acted in violation of subdivision (a) of the regulation in any case in which a customer of said Dealer alleges that said Dealer has committed such a violation.
(l) (1) Each dealer in second-hand automobiles shall keep complete and accurate records of all income and expenses, all receipts and disbursements, and of the investments made and funds provided to finance the business. The Commissioner may prescribe the accounts and written records to be maintained, and such requirements as may be necessary to permit adequate supervision of the business.
(2) The records must include cash receipts and cash disbursements journal, setting forth all payments in detail and identifying the source of all receipts. All disbursements for the purchase of motor vehicles must be traceable to the police book. Receipts shall be traceable to the supporting sales documents.
(m) (1) Definitions.
(i) "Public space" means all publicly owned property between the property lines on a street as such property lines are shown on City records including, but not limited to, a park, plaza, roadway, shoulder, tree space, sidewalk or parking space between such property lines.
(ii) "Sidewalk" means that portion of a street between the curb lines, or the lateral lines of a roadway, and the adjacent property lines, intended for the use of pedestrians.
(2) A dealer in second-hand automobiles must not park, store, display, or leave standing on public space any vehicle it owns, has in its possession, or offers for sale or allow any such vehicle to occupy or encroach on public space in any other manner.
(Amended City Record 7/5/2016, eff. 8/4/2016; amended City Record 3/19/2024, eff. 4/18/2024)
Any not-for-profit organization, as defined in the Internal Revenue Code, 26 U.S.C. § 501, which deals in second-hand articles, shall be exempt from the provisions of Subchapter 11 of Chapter 2 of Title 20. Exempt dealers in second-hand articles shall maintain adequate proof of their tax status on their business premises. For purposes of this regulation, an Internal Revenue Service tax status determination letter is deemed adequate proof.
(a) Labeling of Used Automobiles, Products and Parts.
(1) All secondhand automobiles, products and parts sold by licensed secondhand automobile dealers that are not new shall be labeled as such. Easily understood words such as "secondhand," "used," "not new," "demo model," "pre-owned," "refurbished" and "recycled" may be used to indicate that an item is not new.
(b) Total Selling Price Signs.
(1) The total selling price sign required by § 20-271(b)(1) of the Administrative Code of the City of New York shall be prominently displayed on the dashboard or on the window of the secondhand automobile to which the sign applies, or posted within five feet of the point of display of the secondhand automobile to which the sign applies. If the dashboard or window of the secondhand automobile is not visible to the consumer at eye-level or accessible to the consumer, the sign shall be prominently displayed at the point of display of such automobile.
(2) The total selling price sign shall display the total selling price in lettering that is clear, legible, bold and at least one inch in height. The sign must clearly indicate the automobile to which the total selling price applies.
(3) The total selling price sign shall state, in lettering that is clear, legible and at least one-half as high and one-half as broad as the largest print on the sign, that taxes and fees for securing registration and certificate of title are not included in the total selling price.
(c) Add-On Product Signs.
(1) Secondhand automobile dealers shall list the total selling price of add-on products, as defined in § 20-271(b)(2) of the Administrative Code of the City of New York, very close to the product description. If multiple add-on products are grouped together on the same sign, each add-on product must be listed separately, one item per line, with the price of the add-on product located to the right of the product description. If add-on products are listed individually, the price of the add-on product must be very close to the product description.
(2) Lettering for the description and the price of the add-on product must be clear, legible and the same size which must be at least one inch in height, unless the sign is posted on each individual vehicle, in which case the lettering must be at least half an inch in height.
(3) Secondhand automobile dealers may list the range of total selling prices for extended warranty products very close to the product description in lieu of a specific price. The range of prices must include the minimum and maximum price for the extended warranty, and must also include the factors that may cause the price to vary, such as the vehicle's make, model, year and mileage.
(4) All signs required by § 20-271(b)(2) of the Administrative Code of the City of New York shall include the following language in lettering that is clear, legible, bold and capitalized, and at least one-half as high and one-half as broad as the largest print on the sign, but no less than one-quarter inch in height: "YOU ARE NOT REQUIRED TO BUY ANY ADD-ON PRODUCTS IN ORDER TO PURCHASE A CAR AT THE ADVERTISED PRICE."
(d) The requirements of subdivisions (b) and (c) of this section shall apply to secondhand automobiles dealers that are licensed or required to be licensed.
(Added City Record 3/23/2016, eff. 4/22/2016)
(a) To comply with § 20-268.1(e)(2) of the Administrative Code, each second-hand automobile dealer must provide to each consumer the financing disclosure shown below on a paper no less than 8.5 inches by 11 inches in dimension in the language in which the sales or finance contract was negotiated, provided the commissioner has made such disclosure available in such language.
(b) To comply with § 20-268.1(e)(4) of the Administrative Code, a second-hand automobile dealer must retain a copy of each financing disclosure shown in subdivision (a), along with a written acknowledgement that the consumer received the disclosure, for a period of no less than 6 years. The written acknowledgement requirement is satisfied by obtaining the consumer's written signature or initials on the disclosure document.
(d) It is a violation of § 20-268.3 of the Administrative Code for a second-hand automobile dealer to provide inaccurate translations of documents to a consumer. Each inaccurate document provided to a consumer shall constitute a separate and independent violation.
(Added City Record 5/25/2018, eff. 6/24/2018)
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