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Dealer Information

To run a car dealership in Massachusetts, there are certain requirements and documentations necessary for your business.

Table of Contents

Dealer reassignments (DRT-1)

Massachusetts Automobile Dealers use Dealer Reassignment of Title (DRT-1) for:

Reassignment of Title. - When all other reassignments on the Title have been completed, the selling Massachusetts dealer completes the front side.  Do not use the DRT-1 if:

  • There is an available assignment on the back of the Title.
  • There is an available reassignment on any attached Dealer Reassignment form.  This includes forms from another state.

Always use the first available reassignment.

Authorization for Loan Payoff. - Complete the back side as an assignment and authorization for payoff.  The vehicles owner(s) must sign, print name, date, and disclose the mileage on the form.  This authorizes the dealer to pay off the lien and get the title from the lienholder.  Provide the lien holder a copy of the form along with payment.  When you receive the title, attach the original DRT-1 to it.

Authorization for Duplicate Title. - Complete the back side as an assignment for duplicate certificate of title.  Also, complete an application for duplicate certificate of title form. Attach a copy of the DRT-1 form to the duplicate title application and bring it to the RMV or mail to the address on the application.  When you receive the duplicate title, attach the original DRT-1 to the title

Additional Resources

Registry of Motor Vehicles (RMV) Reminder Regarding Lease Buyouts  

The RMV has received inquiries concerning the process of purchasing a vehicle at the conclusion of a lease agreement, a practice commonly known as a Lease Buyout. The inquiries reflect instances where the buyout has taken an extended amount of time (e.g., more than twenty (20) business days) and the purchaser/lessee had to rent a vehicle between the lease ending and when the dealer obtained the proper documentation to process a new Registration and Title transaction in the new owner’s (former lessee’s) name.  

This Advisory is to remind dealerships that the law requires a dealer to have the Title in hand before they can sell and deliver the vehicle to a customer.  

Several Lease Buyout questions were asked by dealers and agents as part of implementing the RMV’s Vehicle Owner’s Limited Power of Attorney Form and Policy. These questions were collected, and responses were provided. 

Review the Lease Buyouts Questions and Answers (Q&As) document for scenarios and a list of questions and answers related to each scenario. 

Additional Resources

Dealer laws and regulations

Towing Regulations - Trucks, Trailers & Dollies

For trucks, trailers, and tow dollies, there are certain laws and regulations that must be followed to make sure you are legally towing properly.


Commercial plate

A tow- truck displaying a "commercial" registration plate cannot tow an unregistered vehicle if any of the towed vehicle’s wheels are in contact with the road. A "Dealer" plate may be attached to the towed-vehicle if that vehicle is owned by the dealer to whom the Dealer plate was issued. An "Owner-Contractor" plate may be attached to the towed-vehicle if that vehicle is owned by the Owner-Contractor to whom the plate was issued and the vehicle qualifies to display an Owner-Contractor plate. A "Repair" plate may be attached to the towed-vehicle if that towed-vehicle is owned by the repairer to whom the plate was issued, or if the towed-vehicle is owned by a customer of the repairer, or if the towing vehicle is owned by the repairer whose plate is affixed to the towed-vehicle. A "Transporter" plate may be attached to the towed-vehicle if the plate was issued to the Transporter and the transportation of the towed-vehicle has been arranged by the transporter.

Repair plate

 

A Repairer who is operating a vehicle owned by the repairer which is designed to draw, tow or transport motor vehicles and displays a compliance decal issued in accordance with 540 CMR 18.03 may tow or transport an unregistered motor vehicle pursuant to M.G.L. c. 90, § 9, if the towing vehicle is properly registered, displays the valid repair plate, maintains insurance which also provides coverage for the motor vehicle being towed and displays a valid compliance decal. Like the "repair"-plated tow-vehicle described above, a "ramp truck" displaying the valid compliance decal can tow an unregistered vehicle without a plate if the repairer has insurance coverage that protects the towing vehicle and the vehicle being towed.

A "Dealer" plate may not be used on either a tow truck or ramp truck for the purpose of transporting other vehicles. A Dealer who transports his/her own vehicle through the use of a tow truck or ramp truck must obtain a "commercial" registration for such tow truck or ramp truck. A "Dealer" who purchases a tow truck or ramp truck for resale may attach the "Dealer" plate to the tow truck or ramp truck for demonstration or sale-related purposes or for transport of the tow or ramp truck itself to or from an auction.

Trailer

A trailer is defined as: "Any vehicle or object on wheels and having no motive power of its own, but which is drawn by, or used in combination with, a motor vehicle. It should not include a pole dolly or pole dickey, nor a pair of wheels commonly used as an implement for other purposes than transportation. It should not a portable, collapsible or separate two-wheel tow dolly limited only to the purpose of transporting or towing a registered vehicle." It also does not include farm machinery or implements when used in connection with the operation of a farm or estate, nor any vehicle when towed behind a farm tractor and used in connection with the operation of a farm or estate.

Tow dolly

A tow dolly is defined as: "A portable, collapsible or separate two-wheel tow dolly limited only to the purpose of transporting or towing a registered vehicle."

  • A Dealer may tow a vehicle on a two-wheel tow-dolly if the towed-vehicle displays a "Dealer" plate but the towing-vehicle cannot display a "Dealer" plate or a "passenger plate" but should display a "commercial plate."
  • A repairer displaying "commercial plates" on the towing-vehicle can tow a vehicle on a two-wheel tow-dolly but the towed-vehicle must be properly registered or have the "Repair" plate displayed on the towed-vehicle. A repairer displaying "Repair" plates on the towing-vehicle can tow a vehicle on a two-wheel tow-dolly without plates on the towed-vehicle if the towing-vehicle is properly registered, displays the valid repair plate, maintains insurance which also provides coverage for the motor vehicle being towed on the dolly and displays a valid compliance decal.
  • A Transporter can tow a vehicle on a two-wheeled tow-dolly if the vehicle being towed displays the "Transporter" plate. The towing-vehicle must be properly registered (not a passenger registration).
  • An Owner-Contractor generally will have vehicles that will be too large for towing on a two-wheeled tow-dolly but if the registrant does have one that safely fits it needs to display the O/C plate and the towing-vehicle must also display the O/C plate.
  • Tow dollies themselves are exempt from registration requirements.

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