Rules and Regulations for Displaying Your Inventory & Storage Lots
Last week we discussed how multiple dealers can share a location with other dealers or businesses.
Last week we discussed how multiple dealers can share a location with other dealers or businesses. In this week's blog we will focus on how you should display your inventory, and what you can and cannot do with storage lots.
Multiple dealers or business at one location
Even if you share a location with another dealer your display area must be large enough for you to fit at least 5 vehicles of the type you're licensed to sell. These spaces must be reserved just for your inventory.
If you share space with another business, a public parking area, a driveway into the office, or another dealer's display area, you must separate your inventory with a physical barrier that cannot be easily moved. If someone from the state stops to visit, they will need to be able to easily identify all the vehicles you have for sale on your lot and which vehicles belong to each dealer.
According to the Administrative Rules, a display area may not be on a public easement, right-of-way, or a driveway unless the governing body having any jurisdiction of that easement, right-of-way, or driveway expressly consents in writing to use it. That is very rarely the case. The best rule of thumb here is – DON”T PARK ON THE EASEMENT.
A retail dealer must have a display area designated for the dealer's inventory. Your display area must be located AT the dealer's business address or contiguous with that address. Contiguous meaning connected with.
Many dealers will have a storage lot, especially leading up to tax season. A non-contiguous storage lot IS permissible, but only if there is no public access and no sales activity occurs at the storage lot. You are permitted to have a sign stating the dealership name, the phone number, and the fact that it is your storage lot. If your storage lot is across the street or road from your dealership, it is NOT contiguous, and sales activity should not occur at that location.
Before you go
You may also have your display area inside of a building, and if your lot is open after sundown, then it must be adequately illuminated.