Montana Code Annotated 2023



Part 1. Dealers

Auto Auction -- Restrictions -- Annual Report -- Issuance, Use, And Fees For Demonstrator Plates

61-4-120. Auto auction -- restrictions -- annual report -- issuance, use, and fees for demonstrator plates. (1) (a) An auto auction may not sell used motor vehicles by retail sale.

(b) An auto auction licensed under this part may auction a new motor vehicle only if the auto auction is authorized by a new motor vehicle manufacturer, importer, distributor, or representative, for the purpose of conducting a closed-factory fleet sale to dispose of new motor vehicles by the franchisor (manufacturer, distributor, or importer) to franchisee purchasers when the purchasers are licensed new motor vehicle dealers purchasing new motor vehicle line-makes authorized by their respective franchise, sales, or distributor agreements. An auto auction licensed under the provisions of this section shall notify and update the department with current fleet sale agreements between the auto auction and franchisor. An auto auction may not conduct a factory fleet sale unless authorized or appointed by a franchisor licensed under part 2 of this chapter.

(2) (a) On or before the 15th day of the month prior to the dealer license expiration month, an auto auction shall submit an annual report, in a form or manner prescribed by the department, to the department to advise the department of any changes that may have occurred in that calendar year affecting the information originally filed under 61-4-101 and any other relevant information requested by the department. The fee required for each first-time applicant is $500, and when the annual report is filed in subsequent years, it must be accompanied by a filing fee of $100.

(b) If an auto auction seeks to change the applicant's name, ownership interest in the business, corporate officer or managing member of the business entity, or a person designated by the applicant to manage or oversee the applicant's business, the auto auction shall also provide a new license application form as originally required under 61-4-101 and the department shall examine the license application as required under 61-4-101.

(3) An auto auction that is an authorized agent may issue a temporary registration permit to a person who buys a motor vehicle, power sports vehicle, or trailer at the auction, pursuant to 61-3-224. Within 30 days following the date of delivery of the motor vehicle, power sports vehicle, or trailer, the auto auction shall provide the purchaser with the assigned certificate of title or, if a certificate of title for the motor vehicle, power sports vehicle, or trailer has not been issued in this state, a copy of the then-current registration receipt or the certificate and any related documents for each motor vehicle, power sports vehicle, or trailer. It is unlawful for the auto auction to issue more than one temporary registration permit for each motor vehicle, power sports vehicle, or trailer sale.

(4) (a) Upon the issuance of an auto auction license and payment of a $5 fee for each plate, the department shall furnish to the auto auction one or more demonstrator plates that may be used to transport inventory motor vehicles to and from a point of storage or a point of delivery in this state and to and from the auto auction's place of business, for road testing authorized motor vehicles, or for moving motor vehicles for purposes of repairing, painting, upholstering, polishing, and related activities. One license plate is required to be conspicuously displayed on the rear of the motor vehicle.

(b) Auto auctions may appoint designated persons, service stations, or repair garages to use the license plate only when conducting work for the auto auction involving repairing, painting, upholstering, polishing, or performing similar types of work upon a motor vehicle.

(c) When applying for license plates, an auto auction shall submit a sworn affidavit on a form prescribed by the department, listing each authorized person designated by the auction to use the license plates. The auto auction is responsible for reporting any changes to the affidavit within 72 hours after the change has occurred.

(d) An auto auction licensed under the provisions of this section is liable for the proper use of the license plates, which may not be used for private purposes. The department may revoke an auto auction's temporary registration permit and license plate privileges if an auto auction issues, authorizes the use of, or uses a temporary registration permit or an auto auction license plate in violation of the provisions of this section.

(5) (a) An auto auction licensed under this section shall validate the sale of a motor vehicle, a power sports vehicle, or a trailer through its auction by stamping its name and license number upon the certificate of title at a location on the certificate of title, at the margin in the assignment section as executed between the transferor and transferee. An auto auction's stamp must be legible and may not interfere with the information recorded on the certificate of title between the transferor and transferee. If the certificate of title lacks adequate space for the auto auction to place its stamp, the auction may provide the transferee a copy of the auction invoice bearing the:

(i) name and license number of the auction, along with an indication of the year, make, model, and identification number of the motor vehicle, power sports vehicle, or trailer;

(ii) name, address, and signature of the transferor;

(iii) name, license number, and signature of the transferee; and

(iv) date the motor vehicle was sold through the auction.

(b) The invoice must be attached to the certificate of title and must be presented to the department with any application for title.

History: En. Sec. 10, Ch. 383, L. 1991; amd. Sec. 74, Ch. 10, L. 1993; amd. Sec. 3, Ch. 221, L. 1997; amd. Sec. 28, Ch. 409, L. 1999; amd. Sec. 2, Ch. 201, L. 2001; amd. Sec. 9, Ch. 299, L. 2003; amd. Sec. 76, Ch. 477, L. 2003; amd. Sec. 162, Ch. 542, L. 2005; amd. Sec. 41, Ch. 329, L. 2007; amd. Sec. 8, Ch. 323, L. 2017; amd. Sec. 5, Ch. 143, L. 2019.