Understanding Reg 496: Listing New Items
What is a reg 496 and why does the contract need to list new items?
REG496 Demo Certificate Guidelines
A REG496 is a Demo Certificate that must be submitted when a new car was used as a demo. It is crucial to ensure that the contract accurately reflects any new items included in the transaction for proper documentation and compliance purposes.
Purpose of DMV Regulation 496 (Reg 496)
The purpose of DMV regulation 496 (Reg 496) is to verify that a Used Demonstrator vehicle with significant mileage at the time of sale meets the requirements set by the DMV. This regulation mandates that a Demo Cert be signed by an authorized Agent of the dealership and the customer, validating its usage as a demonstrator vehicle.
Important Notes:
- A Reg 496 is still required for a previously leased demo vehicle.
- You can purchase this demo-plated car as new with a regular 496 retail contract.
Dealing with Refusals to Sign REG 496
If the lessee refuses to sign the REG 496 used vehicle certification, it's essential to address their concerns and understand why they are unwilling to sign. You may need to explain the form's purpose and any legal obligations associated with it. If needed, consult your superiors or legal team for guidance on how to proceed in such situations.
Note:
Yes, the REG 496 Demo Cert can be signed by the lessor if necessary.