Every year brings new rules, requirements and information for vehicle transactions. Here are a few reminders for 2021:
RD-108. The Michigan Department of State released an updated version of the RD-108 that must be in use no later than January 1, 2021. The updated version should already be in place for CVR transactions. A copy of the new RD-108 is available here, with a video-walkthrough of the changes here.
Sales Tax on the Difference. For vehicles delivered in 2021, owners trading in a motor vehicle receive a sales tax credit for a vehicle’s trade-in value up to a max. of $7,000. This is a $1,000 increase from the 2020 max. Trade-in Sales Tax Credit FAQs
Odometer Disclosure. Effective Jan. 1, 2021, there will be new requirements in place for odometer disclosure upon a transfer of vehicle ownership. The new federal rules require the seller to disclose the mileage of the vehicle being sold for a period of 20 years following the production model year of the vehicle (previously 10 years). This will be done in a phase-in process, so one model year will be added to the rule each year, beginning with model year 2011 on Jan. 1, 2021. After 10 years, all model years will be phased into the 20 year disclosure rule.
2021 Fuel Economy Guide. Federal law requires new car dealers to provide this guide to customers upon request. You can download the latest guide by visiting the dealer page. It is updated periodically to include newly released vehicle models and current fuel cost estimates.
Standard Mileage Rates. The IRS has issued the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. See the 2021 rates here.
Form 8300, Cash Transactions. Dealers who receive more than $10,000 in cash in a single transaction or in related transactions must provide a written statement to each party whose name was included on the Form 8300 by Jan. 31 of the year following the reportable transaction. Read more here.