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Secretary of state selling process to out-of-state dealers explained

September 6, 2019
The Illinois secretary of state’s recent revised procedure for the state’s dealers to follow when selling vehicles to out-of-state dealers and wholesalers is meant to stop brokers and others posing as dealers, who then try to resell the vehicles in Illinois as private individuals.
Such vehicles often have faulty odometer readings or other issues that can go undiscovered because private sellers do not face the stringent regulations that dealers face.
By administrative directive, the office’s Vehicle Services Department in August directed Illinois dealers and auctioneers who sell a vehicle to an out-of-state dealer and wholesaler to stamp the on the vehicle title the following statement in 36-point font: NOT FOR RESALE WITHIN ILLINOIS or, alternately, NOT FOR RETAIL SALE WITHIN ILLINOIS. The statement should be applied with a stamp or marker.
If a dealer uses an auctioneer to sell the vehicle, it is the auctioneer’s responsibility to stamp the title, not the dealer’s, said Ernie Dannenberger, director of the vehicle services department.
The department subsequently amended its directive to be required only when a vehicle is sold for less than $5,000 and weighs less than 12,000 pounds. One new-car dealer near the Wisconsin line said that amendment would exempt 90 percent of the vehicles he sells to out-of-state dealers, as most of his deals are for more than $5,000.
The department might go to the General Assembly to ask legislators to incorporate the directive into the state’s title laws.