The legislative and regulatory landscape involves both defense and offense from NHADA. For years, we have defended against legislation aiming to weaken the vehicle safety inspection program. Recently, we went on the offense to change a law for the betterment of the industry. On Aug. 2, 2024, HB 1243 was signed to law by Gov. Sununu, effectively changing the way New Hampshire dealers sell vehicles to Massachusetts residents for the better.
Originally introduced as a Banking Department bill, HB 1243 was amended by Sen. Donovan Fenton (D-NH-10) to permit New Hampshire dealers, who were previously prohibited, to issue temporary plates to Massachusetts residents.
This bill also eliminates the requirement that a retail motor vehicle dealer submit a form notifying the New Hampshire Division of Motor Vehicles (DMV) of a sale of a vehicle to a Massachusetts resident. The elimination of this will streamline the vehicle sales process.
Temporary Plate/Registration Disclaimer for Massachusetts Residents
When issuing temporary plates to Massachusetts residents, NHADA strongly recommends using a form titled, “Temporary Plate/Registration Disclaimer for Massachusetts Residents.” This helps ensure that both the dealer and consumer are protected.
The form, pictured here, is available for purchase on NHADA’s online store. You can also place an order by calling our products team at (603) 224-2369 or emailing nhadservices@nhada.com.
This form acknowledges the buyer’s understanding of the laws of the Commonwealth of Massachusetts, including obtaining a permanent registration in a timely manner, paying Massachusetts sales or use tax and more.
For questions or additional guidance on complying with HB 1243, please contact me directly at dbennett@nhada.com or (603) 224-2369.
FAQs/Best Management Practices (BMP)
BMP: When selling a used car, the best management practice is to not deliver the vehicle to the customer unless you, as the dealer, have the title in your possession.
Q: What if the customer leaves the lot with their own plates?
A: You should still include the temp plate in the deal jacket.
Q: Do I still need to fill out the “Vehicle Sold to a Massachusetts Resident Form (RSA 261:56-a)?”
A: No, issuing a temp plate to the customer serves the purpose of alerting the New Hampshire DMV. The RDMV 938 form is no longer required.
Q: Do I have to use the new disclaimer form?
A: While the disclaimer form is not required, it is highly recommended as a best management practice and limits your liability. It protects you in the instance the customer is pulled over and claims they were unaware of their obligations as the customer/Massachusetts resident. Again, NHADA highly recommends using this form.
Q: Am I required to fill out the title application, or can the customer do this on their own at the Massachusetts RMV?
A: You do not need to fill out a Massachusetts title application, the customer can do this on their own at the RMV, however, many NHADA members use a “runner” or a dealership employee to process the title application. In this example, the customer still leaves your lot with the temp plate, however, you are processing the title application on their behalf to eliminate the risk of you becoming liable for the vehicle if the customer does not meet their obligations. If the customer never gets the vehicle titled/perfects the lien, you are on the hook as the owner of the vehicle and responsible for the cost.
Q: Has Massachusetts changed its regulations to allow for the mailing of a title application?
A: HB 1243 only effects the vehicle sales process in New Hampshire, and you should follow the same Massachusetts regulations you previously have followed.
Important Note: HB 1243 only changed the law in New Hampshire regarding the issuance of temporary plates; it did not affect any Massachusetts laws or regulations. Each individual dealer should assess the new rule and develop best management practices relating to the new plate issuance process.
