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OADA and the BMV Respond to Frequently Asked Questions about Off-site Displays
1) What is a dealer allowed to do under the new off-premises display law?
A dealer may display vehicles away from the dealership as long as certain requirements are met depending on whether the display will occur within the dealer’s Area of Responsibility (AOR) or outside the dealer’s AOR are met. In order to display, an affidavit must be filed with the BMV at least three days before the date the display begins. NO Sales may take place at the location.
If a dealer wishes to display within the dealer’s area of responsibility (AOR) as assigned by the manufacturer, the dealer:
- May display a maximum of six vehicles.
- May allow test drives.
- Must affirm that the display will occur within the dealer’s AOR and that no other dealer will be present at the same time.
If a dealer wishes to display outside the dealer’s area of responsibility (AOR) as assigned by the manufacturer, the dealer:
- Is required to get permission from the same-line-make dealer who has been assigned that area of responsibility by the manufacturer.
- May display a maximum of six vehicles.
- Is limited to six calendar days per year for displays outside the dealer’s AOR.
- Must affirm that no other dealers will be present at the same location.
- May NOT permit test drives.
2) If a dealer has more than one dealership, can multiple dealerships display at the same location?
No. Only one dealership, based off of dealer license numbers, can display at a location at one time. If more than two dealers will be present, the sponsor of the event must file for a New Motor Vehicle Dealer Show Permit. Additional information about an Auto Show can be found at: http://autodealers.ohio.gov/special_events_motor_vehicle_show.stm.
3) What statutes govern off-premises displays?
Off-premises displays are permitted by Ohio Revised Code § 4517.221. http://codes.ohio.gov/orc/4517.221.
4) What should a dealer do when asking permission to display in another dealer’s AOR?
When asking to display in another dealer’s AOR pursuant to the code governing displays outside a dealer’s AOR, the dealer should always get any permission in writing and maintain it with a copy of the affidavit for a period of one year following the display.
5) What constitutes a dealer’s AOR?
A dealer’s AOR is the sales territory assigned to the dealer by their manufacturer. Different manufacturers may use different terminology such as Primary Market Area (PMA), Area of Geographical Sales and Service Advantage (AGSSA), or another acronym.
6) Where can I find the required affidavit to display off-premises?
The Bureau of Motor Vehicles has a page dedicated to New Motor Vehicle Dealer Displays which can be accessed http://autodealers.ohio.gov/special_events_motor_vehicle_display.stm. Additionally, the affidavit can be found http://publicsafety.ohio.gov/links/bmv4442.pdf. The affidavit can be e-mailed to DPSDLRshows_displays@dps.ohio.gov, faxed to (614) 752-7220, or mailed to Ohio Bureau of Motor Vehicles, Attn: Dealer Licensing Section, P.O. Box 16521, Columbus, OH 43216-6521. The affidavit must be submitted at least three days prior to the display.
7) Are out of state dealers permitted to display in Ohio?
No. Ohio Revised Code § 4517.221 states that a licensed new motor vehicle dealer may display as long as it complies with the requirements of that section meaning that the dealer must be licensed under Ohio law.
8) Do loaners, courtesy vehicles, shuttles, or parts trucks fall under ORC 4517.221, the off-premises display law?
No. These types of vehicles would not be covered under the off-premises display law. These vehicles are typically titled to the dealership and used for a commercial purpose other than advertising or selling vehicles. While they may have the dealership’s name or advertising on them, their primary purpose is different.
9) What constitutes a charitable or civic purpose?
"Charitable or civic purpose" means either of the following:
- A purpose described in section 501(c)(3) of the Internal Revenue Code;
- A benevolent, philanthropic, patriotic, educational, humane, scientific, public health, environmental conservation, or civic objective, or any objective that benefits law enforcement personnel, firefighters, or other persons who protect the public safety.
"Charitable or civic purpose" is not limited to those purposes for which contributions are tax deductible under section 170 of the Internal Revenue Code.
10) If I have one new dealer license but multiple line-makes, can I display multiple vehicles from different line-makes at the same location?
If a dealer has multiple line-makes under one dealership license number, the dealer may display vehicles from multiple different line-makes at the same location. However, the dealer may still only display up to six vehicles. Additionally, if the line-makes have different AORs, the dealer will be required to submit evidence of each line-make’s AOR and obtain permission from each same-line-make dealer if the display will occur outside the dealer’s AOR.
11) Can used dealers display?
No. Only new motor vehicle dealers may display under the law.
12) Can used vehicles be displayed?
No. Only new motor vehicles may be displayed under the law.
13) What records does a dealer need to retain and for how long?
Dealers must maintain a copy of the affidavit, evidence of their AOR, and evidence of permission from the same line make dealer if the display is occurring outside the dealer’s AOR for a period of one year following the display.
14) Can sales take place at an off-premises display?
No. Sales are absolutely prohibited at off-premises displays.
15) What is the penalty for violating the off-premises display law?
Until September 23rd, 2015, the penalty will remain a criminal misdemeanor of the fourth degree. After that date, the Motor Vehicle Dealers Board will begin issuing monetary penalties for violating the law. Penalties will not exceed $1,000 per violation. For the purposes of the penalty, each day a violation occurs or continues is a separate violation and each sale that occurs in violation of the law is a separate violation. (For example, if a dealer conducts a display in violation of this section for three days, each day is a separate violation and the dealer could receive up to $3,000 in fines). All penalties collected under this section shall go towards the Title Defect Rescission Fund.
