For how long must dealers retain their business records?

Dealers are required to retain their business records for a minimum of four years to comply with federal and state regulations. This retention period is essential as it allows for the auditing of business transactions and ensures that all sales, purchases, and financial activities can be reviewed if necessary. Retaining records for this duration is important not just for compliance but also for resolving potential disputes or discrepancies that may arise after a sale. Keeping records for longer than the required period can be impractical and can consume significant storage space; thus, the four-year timeframe strikes a balance between legal requirements and practical management.