OAR 735-150-0205: Liquidation of Dealer Inventory Upon Closure of Dealership

(1) Upon the closure of any vehicle dealership, a dealer, or former dealer: (a) Must immediately provide DMV Business Regulation Section a complete inventory of all vehicles in possession of the dealer, or former dealer, at the time of closure. The inventory must be in writing and must include, a description of each vehicle including; vehicle identification number, vehicle make, model and year. The inventory list must be submitted with a written plan to DMV to liquidate the vehicles and a proposed time frame in which to do so; and (b) Is strictly prohibited from adding to, or making a sale from the inventory in anyway other than as described in subsection (2) of this rule. (2) Upon the written approval of the DMV Business Regulation Section, all vehicles listed as inventory under section (1) of this rule must be liquidated by one of the following means: (a) The wholesale of the vehicles to another certified dealer, or by consignment to a certified auto auction authorized to wholesale vehicles to other dealers; or (b) Titling a limited number of vehicles in the name of the former dealer, subject to the requirements of ORS 822.015; or (c) Any combination of (a) or (b). (3) A dealer or former dealer described under this rule must maintain a record of all vehicles that are liquidated including: (a) The date and specific method(s), as described under section (2) of this rule, used to liquidate each vehicle; (b) If a vehicle is liquidated to another dealer, or certified auto auction, the name, certificate number and address of each dealer or auction to whom the vehicle was liquidated; and (c) A description of each vehicle including, the vehicle identification number, make, model and year. (d) This section also applies to inventoried vehicles that are not liquidated because they are subject to flooring agreements and have, or will be returned or surrendered to the financial institution or manufacturer holding an inventory financing security interest.