NHTSA Releases Rules on Electronic Odometer Disclosures
For what feels like years to many dealers and state employees, the industry and the government has been anxiously awaiting further instructions and regulations from the National Highway Traffic Safety Administration (NHTSA) on which circumstances would allow for odometer disclosures to be done electronically. NHTSA released those rules earlier this week, in the midst of CADA’s Project DC.
If you are wondering why dealers care about electronic disclosures, speak with your title clerks. In the entirety of the paperwork on each deal, there are two forms that cannot be signed electronically today – the DR 2174 Secured Power of Attorney, and the DR 2407 the Dealer Bill of Sale. The reason these two must be done on secured paper is because they each contain an odometer disclosure – which until this week – meant a wet signature.
The release of this final rule will allow the state of Colorado to adopt standards whereby these forms can be done electronically. This will move Colorado towards a full electronic deal jacket. It should also reduce the need for a dealership’s runners. But, bear in mind, before any of that can happen, the state must now make a rule that is compliant with this regulation, recognizing that the state is ready to accept the electronic version. In conjunction with the coming Electronic Vehicle Registration program that we have been speaking about for the past 12 months, the possibility for a titling overhaul lies on the horizon.
We will keep you updated as the state progresses. If you have any questions, please call Matthew Groves at 303-282-1449, or firstname.lastname@example.org.