When a passenger vehicle is received for trade at a dealership, what is the dealer required to do?

When a passenger vehicle is received for trade at a dealership, it is important for the dealer to follow specific procedures to ensure compliance with legal and regulatory requirements. One of the primary responsibilities involves the removal of the vehicle's license plates and registration stickers. This step is crucial because it helps prevent any potential liability from the previous owner’s use of the vehicle after it has been traded in. Additionally, removing the plates ensures that the vehicle can be properly re-registered under the dealership's ownership or to a new buyer.

This action also reflects proper handling of the vehicle and helps maintain organized records, which is important for the dealership's operations. In many jurisdictions, keeping the old plates attached could lead to issues concerning liability or ownership.

While refurbishing the vehicle or transferring ownership are important processes in the selling of vehicles, they are not immediate requirements at the point of trade-in. Removing the plates is a procedural necessity that safeguards both the dealer and the previous owner from future complications.