The Utah Motor Vehicle Business Regulation Act governs how licensed dealers sell motor vehicles. The Act appears in Title 41, Chapter 3 of the Utah Code. Part 4 of the Act sets out disclosures a dealer must make before a sale is final. These disclosures create a written record of the terms of each vehicle purchase.

The Transaction Disclosure Form

Utah Code § 41-3-401.6 addresses the transaction disclosure form. A dealer may not complete a sale without this form. The requirement applies to both new and used motor vehicles. It does not apply to auction sales or fleet transactions. Both the dealer and the purchaser must sign the form. The signatures memorialize the negotiated terms and prices of the transaction. The dealer must then give the purchaser a copy of the signed form.

Required Cost Itemizations

The form must itemize the costs of the transaction. It must state the negotiated sale price of the vehicle. It must also state the negotiated value of any trade-in vehicle. The form must then itemize the taxes and fees required by law. These include the temporary permit fee and the title fee. They also include the motor vehicle registration fees required by the state. The dealer’s documentary service fee must appear on the form. Applicable sales and use taxes must be calculated and listed. Finally, the form must show a subtotal of the sale price, trade-in value, taxes, and fees.

Optional Charges and Amount Financed

Dealers often offer additional products or services during a sale. Any optional charges the parties negotiate must be listed on the form. If the dealer uses an addendum for these charges, the addendum total must carry over to the form. The form must also state the total amount to be financed. This requirement applies when the dealer agrees to seek financing on the purchaser’s behalf.

Financing Disclosure Requirements

Utah Code § 41-3-401 governs financing disclosures in vehicle sales. A dealer may not issue a temporary permit or release a vehicle without the required disclosure. This rule applies to sales made to anyone other than another dealer. The disclosure must appear clearly and conspicuously on the first or front page of the sale document. The statute prescribes specific language that dealers must use.

When Financing Falls Through

In some cases, a dealer cannot secure financing on the terms disclosed. The dealer must then mail written notice to the purchaser. The notice must be sent within seven calendar days of the date of sale. It must also inform the purchaser of the right to rescind the contract. The purchaser then has 14 calendar days from the date of sale to rescind. A different deadline applies if the dealer fails to send timely notice. In that case, the purchaser may rescind within seven days of learning that financing failed.

To rescind, the purchaser must return the vehicle to the dealer. The purchaser must also pay a mileage charge at the current IRS standard mileage rate. In addition, the purchaser must compensate the dealer for any physical damage to the vehicle.

Legal Assistance in Utah

A dealer’s failure to follow these requirements may violate Utah law. A purchaser affected by such a failure may seek legal counsel to review the transaction. Head Law is a Utah firm that represents clients in consumer matters. Contact Head Law to discuss the facts of a specific transaction with an attorney.