I Don't Need An OCCC License, Or Do I?
This blog comes to you with some good news and some not so good news.
This blog comes to you with some good news and some not so good news. The good news is we have several new members who have joined the association in the last four months. TIADA seems to be playing the role of a lighthouse for some dealers trying to navigate the current choppy waters created by this pandemic. It is a role we welcome, and we are happy to provide that sense of security.
We have also seen an uptick in compliance calls over the last four months. Nothing wrong with that, right? Of course not, it is a member benefit--you might as well use it. During most compliance calls our team will ask some basic questions or offer some unsolicited advice. Especially if we learn the dealer is new to the industry. It may sound like this; you're filing your special inventory tax monthly, correct? Or, remember you will need to renew your Motor Vehicle Seller Finance License (MVSF) in October from now on…not July. That one is usually followed up with, yes that is the license issued by OCCC.
Now for the not so good news. On more than one occasion we have been challenged by dealers who are convinced they do not need the MVSF license issued by OCCC because:
1. They only take additional payments to help customers out if they can't pay for the entire vehicle at one time. And most of the time, it's only one additional payment and it's always cash.
2. They do not charge interest.
3. They are not a BHPH dealer.
Let me debunk all three of these myths, usually spread at the wholesale auto auction by the dealer who is using his buddy's auction pass. They are all false. And if you don't believe us, when OCCC issues a $10,000 fine for financing without a license, it may become clearer.