Overview of Administrative Service Fees (ASF)
In California, the Department of Motor Vehicles (DMV) enforces Administrative Service Fees (ASF) on vehicle dealers for failing to adhere to critical reporting deadlines as per the California Vehicle Code §4456. These penalties are designed to ensure prompt vehicle registration and compliance with state regulations.
Deadline Guidelines
- 5-Day Rule: Dealers must mail the notice-of-sale stub (REG 51) to the DMV no later than the fifth calendar day after the sale, excluding the sale date.
- 20/30-Day Rule: Submission of the full application and fees must happen within 20 days for new vehicles or 30 days for used vehicles.
- 40/50-Day Rule: Applications for new vehicles must be cleared within 40 days, or 20 days after DMV returns them, whichever is later. For used vehicles, clearance should occur within 50 days, or 30 days after return, whichever is later.
Penalty Structure
Failure to comply with these deadlines results in ASF penalties:
- $5 for a late notice-of-sale or application submission.
- $25 for not clearing applications within the specified 40/50-day windows.
It is illegal to transfer these fees onto the customer. Unpaid ASFs can lead to further consequences like bond claims or licensing issues.
Best Practices for Dealers
- Maintain a daily log to track sale dates and deadline adherence.
- Submit incomplete applications with a Fee Deposit Report if the title is unavailable.
- Audit weekly to identify unresolved applications and immediately resubmit any returned by the DMV.
- Ensure staff is trained that ASF penalties are the dealer’s responsibility, not the buyer’s.
Staying within statutory deadlines protects your dealership’s bond, avoids unnecessary penalties, and maintains smooth registration processes.
