Used Tire Dealers: Please Read Carefully
Michigan Passes New Law on the Sale of Used Tires
In Michigan, there is a new law for used tire dealers. Governor Snyder signed the bill last week, the new law takes effect in mid-August.
In short, the State of Michigan is trying to crack down on the sale of stolen used tires. The new law significantly changes the rules for buying used tires in Michigan.
Rowleys wants to make sure our dealers (that sell used tires) know about the law.
The new law creates a lot of restrictions on how a used tire dealer can buy from used tire suppliers. It does not legislate anything about how used tire dealers sell to retail customers.
Record keeping. When a used tire dealer buys / receives used tires, that dealer is now required to keep the following records:
- A general description of every used tire they purchase from a used tire distributor.
- The identification number of the vehicle from which each used tire came.
- The used tire’s state of origin.
- The date that the used tire dealer bought the used tire.
- The name of the individual selling the tires to the used tire dealer, their date of birth, their driver’s license number, their street address, and a legible copy of their right thumb print.
Used tire dealers can no longer purchase their used tires with cash. The new law forbids used tire dealers to buy their used tires (from their used tire source) with cash. Under the new law, when a used tire dealer is buying tires form their source, the used tire dealer must pay with a check, credit card or money order – basically making the purchases traceable to the police.
Displaying used tires. The new law reads that used tires on display in a showroom must be displayed with a “tag” that shows the transaction number in which the used tires were purchased.
Fines and jail time. Used tire dealers violating the law would be guilty of a misdemeanor punishable by up to one year in prison, a fine of up to $1,000, or both. A second or subsequent violation would be a felony punishable by up to two years in prison, a fine of up to $5,000, or both.