Ever have identical vehicles on your lot? Same make, model, and even color? Better be careful with your paperwork! Good news: A dealer sold two identical cars in two days. The bad news? The paperwork got mixed up and the vehicles' VINs were registered in the wrong customer names.
So what solutions does the dealer have? Unfortunately there is no easy solution. The dealer has to unwind both deals and re-register the cars in the appropriate names. If a vehicle is sold by a dealer, the title must be transferred into the correct customer's name, or the deal must be unwound.
Unwinds refer to a dealership's taking back a vehicle, either because the customer and the dealer mutually agree to do so, or because one party is legally entitled to that result. Sometimes, it is in the best interest of the dealer to unwind a deal due to title, lien, or other transactional issues. Of course, accepting a returned vehicle isn't as simple as repackaging some shoes and bringing it back to the store with the original receipt. The return of the vehicle is, generally, at the discretion of the dealer on a case-by-case basis.
An unwind refers to an incomplete vehicle transaction where the sale is not formally consummated for registration purposes, but a new or used Report of Sale has been fully or partially completed. With an unwind, the customer is deemed to have never taken delivery of the vehicle. An unwind may occur, for example, because the customer changed his mind about the purchase after realizing that the vehicle wouldn't fit properly in his garage or that he wanted a different model. Processing an unwind is a paperwork issue that involves the following: void the Application for Registration of New Vehicle (REG 397) or the Used Report of Sale (REG 51) and complete a Statement of Facts (REG 256) that confirms the vehicle never left the dealership's possession and was not operated. Beware, however, that if the customer took delivery of and operated that vehicle, this transaction must be treated as a rollback.