Martinez, 053119 NMAGO, IAL 05312019

• Case Date: May 31, 2019
• Court: New Mexico

Representative Javier Martinez IAL 05312019 New Mexico Attorney General Opinion State of New Mexico Office of the Attorney General May 31, 2019          Representative Javier Martinez          Re: Fees Covered by Office of Attorney General Rules Governing Advertising and Sale of Motor Vehicles          Dear Representative Martinez:          You requested our advice regarding provisions of the Office of the Attorney General's rule governing the advertising and sale of motor vehicles, including certain fees charged by motor vehicle dealers. Rule 12.2.4 NMAC (1998, recompiled 2001) ("Rule"). In particular, you asked (1) for clarification of the Rule's requirements for dealer transfer services fees, documentary fees, and dealer preparation fees; and (2) whether those fees may include a profit component. Discussed below are the Rule's requirements for each of the fees mentioned in your request. The Rule does not permit a dealer to add any charges that represent additional dealer profit after the dealer negotiates the terms of a sale.          The OAG promulgated the Rule under the authority vested in the Attorney General by Section 57-12-13 of the New Mexico Unfair Practices Act, NMSA 1978, §§ 57-12-1 to -26 (1967, and as amended), and Section 57-15-7 of the New Mexico False Advertising Act, NMSA 1978, §§ 57-15-1 to -10 (1965, and as amended), " to issue and file all regulations necessary to implement and enforce any provision of the acts. The purpose of the Rule is to address unfair and deceptive practices connected to the advertising and sale of motor vehicles. See 12.2.4.6 NMAC.          Two provisions of the Rule address the fees specified in your request. First, Section 12.2.4.21(A) makes it "an unfair or deceptive trade practice for a dealer to advertise the price of a new motor vehicle unless the advertised price is the full cash price for which the dealer will sell the vehicle." It states in relevant part:          The only charges that may be excluded from the advertised price are:

(1) federal and state taxes;

(2) license fees;

(3) vehicle registration; and

(4)

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