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How does this new rule regarding vehicle registration affect vehicle sales?
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How does this new rule regarding vehicle registration affect vehicle sales?

WPTV is listening to the concerns of local auto dealers who are selling fewer cars following a new rule implemented by the Florida Department of Highway Safety and Motor Vehicles that requires people who want to register a car to have a valid document that allows them to be legally in the United States. .

Those trying to register the car with a passport must be of United States origin or have an unexpired passport issued by the government of another country, marked by the United States Department of Homeland Security (DHS). Other valid documents include an unexpired I-94, a valid permanent resident card, and an unexpired immigrant visa issued by DHS.

Michael Melendez, owner of Mike Auto Sales, estimates his sales were down 75% last month. He said the administrative rule, which does not require the enactment of a new law, makes it harder to sell cars to undocumented immigrants, even if they are former customers.

“They are great, hard-working people,” Melendez said. “Recently, I had a guy come to me who had bought a car before me and didn’t know about this rule. I said, ‘Listen, I’d love to sell you another car, but I can’t.’ I’m losing this whole business. It’s driving me crazy.”

Melendez, who brought in two other small car dealerships, spoke with WPTV Reporter Ethan Stein about two other local small car dealerships with similar stories of business loss. They believe undocumented immigrants will start paying people with proper identification to buy cars, then drive without registration or insurance.

“They hit someone, they injured someone, no one will pay,” said Andres Cedeno and Eduardo Sued, owners of Automobile Sales Center and Delta Car Trade.

The rule was not adopted by the legislature but was created by a state agency overseen by the Governor’s Office. Emails obtained by WPTV show that the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) on Sept. 5 asked state tax collectors to enforce the rule starting Sept. 23. Car dealers are given just two weeks to comply with the rule.

WPTV reached out to FLHSMV, which directed us to documents posted on the Florida Administrative Code and Administrative Record website. These documents show that the state felt the policy was necessary to “provide documentation clarity” for the term “valid passport” in state law.

“The purpose of this rule is to clarify the documents that must be submitted before registration of a vehicle,” the document said. “The effect of this will be to allow the department to ensure compliance with state law when processing the vehicle registration application.”

Despite concerns from Melendez, Cadeno, Sued and other local auto dealers, the agency determined it would not increase regulatory costs by as much as $200,000 or harm small businesses, according to the document.

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