The deadline for implementing the new Non-Secure POA (NSPOA) (if you choose to implement it), the Secure POA (SPOA)(mandatory), new Odometer Disclosure Statement (OS/SS-2) and new rules for Dealer POA (mandatory) is October 30, 2023. There will be no further extensions.
NJ CAR has consistently advised dealers that, when selling a vehicle to a business, it is recommended that the dealership get something in writing from the business authorizing its officer/employee to make the purchase on behalf of the business. This recommendation protects the dealership from any fraud that a bad actor may be trying to perpetrate against the business and by extension, the dealership.
What has been a best practice for dealerships is now a NJMVC requirement.
NJMVC has advised NJ CAR that documentation from the business authorizing its officer/employee to conduct business on its behalf is required to be submitted along with any applicable POA. The documents can take the form of any of the following:
- Formation documents showing the name of the authorized business representative.
- A Business POA (on official company letterhead), authorizing the individual to act for the business.
- A notarized letter (on official company letterhead), giving authority to act for the business.
- A notarized Resolution.
If a dealership knows that they will be engaging in a business purchase, they should alert the business to send one of the above documents with their officer/employee. Regardless of what document a business chooses to submit, the applicable POA that is filled out at the dealership must include the authorized signer’s name (business officer/employee), title and name of the company that they are signing for. The chosen business document must be submitted, along with the applicable POA, and a copy filed in the Deal Jacket.
If dealers have questions about the POAs, they should contact Mary Lynn Edwards, DSP Director, via email, at [email protected] or at (609) 883-6330 ext.102; Eileen Nuttall, DSP Manager, via email, at [email protected] or at (609) 883-6330 ext.101; or Greyson P. Hannigan, NJ CAR’s Director of Legal & Regulatory Affairs at (609) 883-5056 – ext. 340 or, via email, at [email protected].