Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, October 27, 1995 TAG: 9510270069
SECTION: VIRGINIA PAGE: C-3 EDITION: NEW RIVER VALLEY
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
The Department of Motor Vehicles wrote the board in July, saying that it had been advised by Attorney General Jim Gilmore that prices must include the fees, which can range from $99 to nearly $200.
Last month, the board decided to abide by that advice until a formal opinion is issued.
But board member Frank Cowles Jr., president of Cowles Nissan Chrysler Plymouth in Woodbridge, argued Wednesday that dealers should go back to listing the fees in a footnote until a formal opinion is issued by Gilmore's office. The board voted 14-3 to reverse itself.
The flip-flop worried some board members.
``I'm worried about the publicity. To reverse our earlier decision before we get a formal opinion from the attorney general would be an unfortunate action for this board to take,'' said Richard Sharp, president of CarMax: The Auto Superstore.
The Virginia Citizens Consumer Council has asked Gilmore for an investigation of the fees, which the group says are optional but often are listed on buyer orders as if they are part of car prices.
``My fear is that the dealers are trying to have it both ways by arguing that the fee is optional while preserving it as part of a standardized contract,'' council President Jean Ann Fox said after the vote.
The dealers' board, which held its first meeting this summer, took over regulatory power over dealers from DMV.
The 1995 General Assembly and Republican Gov. George Allen approved legislation creating the board, despite criticism from consumers who said it could lead to conflicts of interest because 16 of the board's 19 members represent the car industry.
The board also voted Wednesday to look into toughening the test for people who want to sell cars for a living. Currently, the test is a 50-question open-book exam with a 92 percent to 98 percent pass rate.
``We're not saying a whole lot about our image when we take an open-book test,'' said Daniel Wilkins, the board's executive director, .
The board voted to create a committee to revise licensing procedures and the test by next year - when the board takes responsibility for licensing dealers and sales workers.
Memo: NOTE: Shorter version ran in Metro edition.