New Jersey Motor Vehicle Commission Proposes Changes to Temporary Tag System Amidst Concerns

The New Jersey Motor Vehicle Commission (NJMVC) has proposed amendments to the rules governing the temporary tag system for selling used cars. The move comes amidst concerns over the misuse of the system by smaller dealerships. The proposed changes aim to provide the NJMVC with more oversight power, but some industry experts believe that without additional resources for enforcement, the issues may persist.

SOUTH JERSEY — In a bid to address the growing concerns surrounding the misuse of the temporary tag system for selling used cars, the New Jersey Motor Vehicle Commission (NJMVC) has put forth a series of proposed changes. The state currently boasts over 4,000 licensed car dealers, with a significant number of them being smaller dealerships. According to Jim Appleton, president of the New Jersey Coalition of Automotive Retailers, many smaller entities issue more temporary tags than the number of cars they sell. This has led to a situation where these dealerships act more as short-term, month-to-month leasing agents rather than traditional car sellers.

Appleton shed light on the issue, stating, “Temporary registrations are going on much longer than the 30 days or 60 days permitted because it’s really not a sale of a used car vehicle.” He further emphasized the risks associated with this practice, noting that many of these vehicles are not adequately insured. “They have no reason to be on the temp tag system other than to abuse the system and use it for purposes for which it was not intended,” Appleton added.

The proposed amendments by the NJMVC include provisions for:

1. Extending the Nonresident Temporary Registration: A nonresident temporary registration will now expire at the end of 30 days, an increase from the previous 20 days. This registration will expire as soon as the registrant has received the permanent registration for the vehicle from their state or Federal district of residence.
2. Restrictions on Altering Registrations: A licensee cannot alter a previously issued nonresident temporary registration. A second temporary registration, valid for an additional 30-day period, can only be issued when permanent vehicle registration is delayed due to reasons like the original title being lost or the lien holder delaying the provision of the original title.
3. Conformance to Statutory Changes: The proposed amendments aim to conform to statutory changes, which increase the validity period of a non-resident temporary registration from 20 to 30 days. They also allow the issuance of a second 30-day temporary registration in cases where permanent registration is delayed.
4. Increased Oversight: The amendments also clarify the Chief Administrator’s authority to examine a licensee’s nonresident temporary registration records on demand.

However, Appleton remains skeptical about the effectiveness of these changes in curbing the misuse. He remarked, “Making something double secret illegal doesn’t change behavior. What we really should be trying to do is create a new category of licensure for wholesalers.”

The proposed changes have been made public in the New Jersey Monitor. The NJMVC will be accepting public comments on these proposals until September 15, 2023. Officials from the commission have assured that they will address specific concerns raised post this date.

Source: This article is based on information provided by KYW Newsradio and the New Jersey Motor Vehicle Commission's official document.

For those interested in delving deeper into the proposed changes, the detailed document can be accessed here.