Interpretation ID: nht79-1.33

DATE: 01/12/79

FROM: AUTHOR UNAVAILABLE; John Womack; NHTSA

TO: Lori Malinovsky

TITLE: FMVSR INTERPRETATION

TEXT:

12 JAN 1979 NOA 30 (KDe)

Lori Malinovsky Gladiator Southeast 1250 8th Street Jacksonville, Florida 32205

Dear Ms. Malinovsky:

This is in response to your letter of October 30, 1978, requesting information on the Federal Odometer Mileage Statement. Section 580.5(b) of Title 49 Code of Federal Regulations provides

A transferor of a new vehicle prior to its first transferor for purposes other than resale need not disclose the vehicle's odometer mileage.

Manufacturers of vehicles fall within this section and are exempt from the disclosure requirements because they sell vehicles to dealers who intend only to resell the vehicles. Since Gladiator, Inc. purchased the vans new with the intent to resell them and since the vans are being sold to dealers only who also intend only to resell them, Gladiator is likewise exempt from the disclosure requirements. The dealerships, however, will be selling the vans to customers who will use them for some purpose other than resale. Consequently, the dealerships are required to issue disclosure statements each time they sell a van.

Sincerely,

John Womack Assistant Chief Counsel