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One risky issue in the auto sales industry that many dealers overlook is vehicle labeling (or lack thereof). In this article, we’ll dive into why using adequate labeling for every vehicle on your lot is a necessity.

If you prefer an audio-visual version of this blog, click below. 

Labeling Vehicles 

All cars on a lot must be labeled in some way. If a vehicle is not for sale it must have a Not For Sale sign on it, and if a vehicle is for sale it must have a Buyer’s Guide displayed in the window. If a dealer has a car on their lot that needs repair, was recently repossessed, or is a loner vehicle, all of them need signage that says Not For Sale

Why Labeling is Important

There are various fines associated with not labeling vehicles correctly. How do state auditors find non-labeled cars on a lot? They can either scan them on a planned audit or an unannounced audit. Non-labeled cars are easy to spot because the label must be displayed on a window; therefore, if an auditor is simply driving by a car lot and sees an empty window, they could pull in and assess the situation with a fine (if that is deemed appropriate).

Okay, but ALL Vehicles Need Labeling…Really?

You might be asking yourself: All vehicles, really? What if I just got it from auction or it needs repairs and isn’t ready for sale? The answer is yes. ALL cars need labeling. If you have cars straight from auction, under repair, or maybe you have loners sitting on your lot, all of which are not ready for sale, then they likely won’t have a Buyer’s Guide in the window. In its place, you have to put a Not For Sale sign. Otherwise, it could be a violation that a state auditor would assess against a dealer.

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Steven Lefkoff

Steven is the founder of Lefkoff Law and is committed to providing legal educational resources for businesses. Lefkoff Law serves Georgia-based small businesses and specializes in supporting car dealers.

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