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Originally Posted by chassis
ScottyRyan, thanks. You said the dealer titles the vehicle with the state of MN, correct? That means the state of MN views the dealer as the lawful owner, in which case ownership has passed from the manufacturer to the dealer. Do you agree?
Is this how "punching" works? Title passing from manufacturer to dealer?
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Common practice. The dealer does own the vehicle once it is licensed, no different than any other entity.
Dealers delineate how the cars are “punched” in the Manufactuer’s sales reporting system. For example they have retail, fleet and a code for loaners amongst other types of punches.
In Minnesota, like most states, it is illegal to let customers driver cars as loaners with a dealer plate. A healthy fine. Dealer plates are for demonstration purposes. The state also wants to collect tax and license fees too for each loaner too. So the service loaners as others have pointed out normally are sold as CPO when they come out of the loaner pool.
Most manufacturers that have a service loaner program and likely operate it similarly. Seems like a money grab for the government.