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Commission debates fines for unlicensed car sellers; favors $5,000 cap for individuals

Tennessee Motor Vehicle Commission · July 28, 2026
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Summary

Commissioners debated whether to assess $1,000 per vehicle or cap fines at $5,000 for individuals selling more vehicles than allowed. The body moved to standardize some first-time, individual cases at a $5,000 maximum and instructed staff to apply professional judgment for repeat offenders.

Commissioners examined disparities in civil penalties for unlicensed sellers after staff presented cases where individuals sold vehicles without a dealer license. Staff noted an agreed schedule ($1,000 per vehicle over the allowed five) but the commission considered whether a capped penalty is more appropriate for private individuals selling on marketplace platforms.

Commissioner Andrews said a $5,000 cap for a first-time, individual offense would likely get a person’s attention and be more appropriate than a per-vehicle formula in many circumstances. Staff agreed the statute allows a case-by-case approach and pointed to factors the commission should consider when setting penalties.

The commission moved to amend case 188 to a $5,000 civil penalty to align with other similar matters and to adopt consistent practice going forward; staff will clarify guidance for distinguishing repeat offenders from inadvertent individual sellers.