Salem RV dealership surrenders vehicle dealer certificate

Oct. 4, 2016
ODOT News Release No. 16-101
News media contact: David House, 503-945-5270 or david.j.house@odot.state.or.us

Salem RV dealership surrenders vehicle dealer certificate

Northwest RV Sales ceases all dealer activity immediately

A Salem vehicle dealer agreed to surrender its Oregon vehicle dealer certificate and cease all dealer activity as of Sept. 28.
Oregon DMV entered into a settlement with Northwest RV Sales Inc. of Salem after the DMV Business Regulation and Fraud Prevention Section conducted multiple investigations of consumer complaints. The complaints related primarily to the dealership taking excessive time to pay owners of consigned vehicles and to submit title and registration documents to DMV.
Northwest RV Sales Inc. operated its dealership at 6492 Portland Road NE in Salem. It also operated a parts supply and RV repair shop at the location. The business was first issued a Vehicle Dealer Certificate in 2005. A majority of the dealership’s business involved selling RVs that were consigned to the dealership by RV owners.
Oregon law requires a written agreement between the owner of an RV and the dealership at the time of consignment, which shows how much the owner is to be paid once the RV is sold. Once the dealership sells the RV, the dealership is required by law to pay the owner and any lienholders the agreed upon amount within 10 days. The dealership is also required to submit title and registration documents to DMV within 30 days of the date of sale.
When a dealership fails to meet these obligations, it can cause significant harm to the owner, buyer and any lienholders.
Northwest RV Sales Inc. has paid multiple fines for similar violations since 2012. In November 2014, DMV placed the dealership on one year of probation of its dealer certificate. In August 2015, the dealership violated terms of the probation, and DMV imposed a seven-day suspension of the dealer certificate. During that suspension, the dealership was prohibited from engaging in any dealer activity.
DMV Business Regulation uncovered multiple new violations in February 2016 and again in August 2016. 
Under the terms of the settlement agreement, Northwest RV Sales Inc. will pay an $8,000 fine and its vehicle dealer certificate will be suspended for a three-year period. The owner of Northwest RV Sales Inc. may not obtain a new certificate for another dealer business during the term of the suspension.
Part of DMV’s mission is to protect financial and ownership interests in vehicles. When a vehicle dealer shows an ongoing inability to comply with safeguards put in place to protect those interests, DMV takes the necessary steps to minimize or remove that potential harm.

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