Section 1020.15 Buy Here, Pay Here Dealers

Section 1020.15  Buy Here, Pay Here Dealers

a)         For

the purposes of this Section, a Buy Here, Pay Here used vehicle dealer (BHPH) means

any entity that engages in the business of selling or leasing of vehicles

and finances the sale or purchase price of the vehicle to a customer without

the customer using a third-party lender

(IVC Sec. 5-102.8(a)). This is done

by using a financial institution in which the BHPH has an ownership stake.  By

contrast, the third-party lenders used by non-BHPH dealers licensed under the

IVC are not legally or financially associated with the BHPH.

b)         A BHPH

shall only be required to acquire one license under IVC Section 5-102.8, which

would permit the BHPH to sell and/or lease 5 or more used vehicles per year.

c)         A BHPH

may have a separate legal entity, in which the owner of the dealership has an

interest, that provides financing solely for customers of the BHPH.  A BHPH may

sell a vehicle for cash or by other traditional financing methods.  However, the

promotion, advertisement, solicitation, and general engagement in the sales

transactions performed by the BHPH and its associated financing entity must

reflect that the customer may purchase the vehicle on a payment plan basis,

within a specified period of time, from the associated financing entity in

which the BHPH has a financial stake.

d)         Each BHPH

is required to submit the appropriate certificate of title and registration

fees and taxes to the Secretary of State (SOS) and the Department of Revenue,

respectively, for each sales or lease transaction, with the application for

certificate of title and registration reflecting the date of purchase the

customer agreed to the terms of the sale or lease and took possession of the

vehicle, regardless of how the sale was financed or the vehicle was transferred

to the customer

and taxes to the Secretary of State (SOS) and the Department of Revenue,

respectively, for each sales or lease transaction, with the application for

certificate of title and registration reflecting the date of purchase the

customer agreed to the terms of the sale or lease and took possession of the

vehicle, regardless of how the sale was financed or the vehicle was transferred

to the customer.

e)         Beginning

January 1, 2020, all BHPH must electronically submit titling and registration

applications to SOS, either through an ERT program or online through the SOS

website:  cyberdriveillinois.com/departments/vehicles/title_

and_registration/pert.html.