The UCDA prides itself on its suite of forms and bills of sale, the industry gold standard. Considerable time, effort, and research go into developing these forms to ensure compliance with key legal statutes such as the Motor Vehicle Dealers Act and the Consumer Protection Act. However, these forms are only as good as your ability to use them correctly.

To properly use these forms, you must complete them, explain them and read them thoroughly, front and back, and ensure that your customer can do so as well. This means that if documents are sent to your customer electronically, be sure to provide both the front and back of the document.

Many of the questions and concerns that can arise in a deal are already answered by the bill of sale.

For example, the UCDA is often called by members with questions about what happens to a customer’s deposit when they fail to take delivery of a vehicle. The answer is simple. The dealer can only lay a claim to a deposit if they have a signed bill of sale. If there is no bill of sale, the dealer must return the deposit in full. Where the dealer has a signed bill of sale, section 3, on the backside of the latest version of the UCDA Used Vehicle Bill of Sale, explains how to deal with the deposit.

In other words, you must send the customer a registered letter, wait seven days, and resell the vehicle for the best price you can manage. Then you itemize any losses or “damages” you incur along the way and then take those damages from the deposit provided by the customer and give them back any remaining amount along with the itemized list of damages.

What happens if the customer signed the bill of sale sent to them digitally, but was not provided with the backside of the UCDA bill of sale and now wants out of the deal? The customer cannot agree with a clause that they did not have the opportunity to read or that they did not even know existed! In these cases, the dealer should refund the customer’s deposit in full and let them out of the deal. This is why it is very important that customers are provided with the whole contract.

Members with questions about UCDA forms or who want a copy of the template registered letter can contact the UCDA’s Legal Department at (416) 231-2600 or toll-free at 1-800-268-2598.