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

WPTV listens to the concerns of local car dealers who are selling fewer cars after a new rule implemented by the Florida Department of Highway Safety and Motor Vehicles that will require people who want to register a car to have a valid document authorizing their legal presence in the United States. .

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

Michael Melendez, owner of Mike Auto Sales, estimated that his sales are down 75 percent in the past month. He said the administrative rule, which does not require a new law to take effect, makes it more difficult to sell cars to undocumented migrants, even if they are past customers.

“They’re great, hardworking people,” Melendez said. “Recently, someone came who bought a car from me previously and didn’t know about (the rule). I said “Look, I’d love to sell you another car and I can’t. I’m losing this whole business. It drives me crazy.”

Melendez, who brought in two other smaller car dealers, spoke with WPTV reporter Ethan Stein about two other local smaller car dealers with similar stories of losing business. They believe undocumented migrants will start paying people with proper ID to buy a car, then drive without registration or insurance.

“They hit somebody, they hurt somebody, nobody’s going to pay,” said Andres Cedeno and Eduardo Sued, owners of Auto Sales Center and Delta Car Trade.

The rule was not passed by the legislature, but was created by a state agency overseen by the Governor’s Office. Emails obtained by WPTV show the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) asking county toll collectors on Sept. 5 to implement the rule beginning Sept. 23, giving car dealers just two weeks to adapt to the rule.

WPTV contacted the FLHSMV, who directed us to documents posted on the Florida Administrative Code and Administrative Registry website. Those documents show the state believed the policy was necessary to “provide clarity regarding documentation” for the term “valid passport” in state law.

“The purpose of this rule is to provide clarity regarding the documentation that must be presented prior to the registration of a vehicle,” the document states. “The effect will be to allow the department to ensure compliance with state law when processing a vehicle registration application.”

According to the document, and despite concerns from Melendez, Cadeno, Sued and other local auto dealers, the agency determined it would not increase regulatory costs by $200,000 or hurt small businesses.

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