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California DMV Vehicle Dealer Programs

Learn about California DMV Vehicle Dealer Programs and the benefits of Business Partner Automation for electronic titling, paperless transactions, and temporary license plates.

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California DMV Vehicle Dealer Programs

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  1. California DMV Vehicle Dealer Programs Business Partner Automation Electronic Titling Future Concepts: Paperless Transactions Temporary License Plates

  2. Business Partner Automation – 18 Years of Public Private Partnerships • Began in 1996 for high-volume customers; made available to anyone in 2001. • Uses an interface called Virtual Clerk. • Two ways to play: • First Line Business Partner (1) • First Line Service Providers (5) connecting Second Line Business Partners (4,221) • AB 1215 (2011): New car dealers must enroll and use BPA. • Provider fees passed to consumers, but capped at $29. • First Line participants are responsible for all fees due through EFT.

  3. …How It Really Works… A dealer needs to complete a registration and titling transaction involving a new or used vehicle purchase. For a fee, a service provider affords access to a proprietary front-end application that connects to and updates DMV. DMV receives data through the ‘virtual clerk’ program connection and updates its records, mirroring how it would be handled in a DMV environment. The car buyer reimburses the dealer for the service fee and receives registration and license plates from the dealer or service provider. DMV provides a title or ELT record.

  4. BPA Volumes • FY 09/10: $434 million in state revenue • FY 13/14: $1.1 billion - a 253% increase

  5. Electronic Lien and Title (ELT) – 25 Years of Savings and Efficiency • First state to implement ELT in 1989 with GMAC • 1995 - 15 participants and less than a million titles • AB 1515 (2009) authorized DMV to make its use mandatory • 2014 - 2,452 and 4.5 million titles

  6. How Electronic Liens Work • Electronic tables record participating lienholders. • When a new record matches a name on the table an electronic record is forwarded to an ELT vendor in lieu of a paper title. • Lienholders trigger changes through title requests that trigger a variety of DMV actions: • Release to the registered owner • Record a new ELT-based lienholder • Transfer to a new lienholder on paper (commonly a trade-in) • Change names within an institution (branch or subdivision change) • Request a title with no changes

  7. Future Plans: Paperless Transactions • Goal #1: Larger Dealer Presence in ELT • Wholesale and trade-in transactions can be recorded immediately • Subsequent recordings are not delayed – faster reimbursements • Goal #2: Eliminate the Paper Chase • Convert paper documents to electronic images in BPA • Authorize electronic report of sale and contract execution • Goal #3: Inventory Management and Cost Control • Universal registration products created on demand • Electronic credentials (onboard or handheld)

  8. Future Plans: Paper Plates – Why? • New car sales volumes now exceed 200,000 per month. Most vehicles owners are without license plates for about 30 days. • Sales growth overlaps areas where electronic tolling for bridges and lanes is increasing. Local authorities report toll violations from unplated vehicles exceed $12 million annually. • Issuing something at the time of sale would eliminate or reduce unplated vehicles. • This may also improve general public safety, and serve as a stronger incentive for accurate dealer service.

  9. How a Paper Plate Might Work • A dealer records a sale (new or used) in a Report of Sale system using all data normally provided on paper forms. • The dealer receives traditional Report of Sale documents, a window copy, and temporary license plate, if the vehicle is not already plated. • Access to the Report of Sale system: • Standalone application • DMS add-on • BPA component • Portable device

  10. Advantages of the Approach • Provides a temporary plate that can be read and used to access vehicle ownership data already available by reading license plates. • The system is incorporated into existing processes while achieving better automation of the sale reporting process. • The Report of Sale system serves as a resource for state agencies (DMV, BOE), improving industry oversight without requiring a stronger presence in the field.

  11. Contact Information Andrew Conway, Chief Registration Policy and Automation Branch 916.657.6259 andrew.conway@dmv.ca.gov

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