SB498 Alabama 2010 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Larry MeansMayor
Democrat
Session: Regular Session 2010
Title: Used motor vehicle dealer, licensing of, definition to include licensees of State Banking Department, Sec. 40-12-390 am'd.
Summary: SB498 clarifies who must be licensed as a used motor vehicle dealer in Alabama and outlines exemptions for banks, finance companies, and rental/leasing firms.
What This Bill Does
It amends the licensing definitions for motor vehicles to specify who qualifies as a used motor vehicle dealer. A used motor vehicle dealer is defined as any person, firm, or corporation that buys, sells, exchanges, advertises, or negotiates the sale of five or more motor vehicles at retail in a calendar year, with lease-purchase transactions included in this sale count. The bill also clarifies exemptions, stating that banks licensed by the State Banking Department and finance companies acquiring vehicles as part of their regular business are not considered used motor vehicle dealers, and rental/leasing companies are not included in this category. The act becomes effective immediately after passage and approval by the Governor.

Who It Affects
Used motor vehicle dealers and potential dealers who sell five or more motor vehicles at retail in a calendar year would be subject to licensing under this definition.
Banks licensed by the State Banking Department and finance companies that acquire vehicles as part of their regular business are not considered used motor vehicle dealers, and motor vehicle rental and leasing companies are also excluded from the used motor vehicle dealer definition.

Key Provisions
Amends Section 40-12-390 to redefine licensing definitions related to motor vehicles.
Defines Used Motor Vehicle Dealer as a person/firm/corporation that sells or negotiates the sale of five or more motor vehicles at retail during a calendar year, including lease-purchase transactions.
Explicitly excludes banks licensed by the State Banking Department and finance companies that acquire vehicles incident to their regular business from being classified as used motor vehicle dealers.
Explicitly excludes motor vehicle rental and leasing companies from the used motor vehicle dealer definition.
Clarifies related terms such as Permanent Location and Ultimate Purchaser to support licensing interpretation.
Effective date: immediately following passage and Governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Motor Vehicles