What can happen if a dealer consistently fails to pay collected fees on time?

If a dealer consistently fails to pay collected fees on time, the repercussions can be quite serious. The DMV has the authority to enforce regulations that ensure compliance with financial obligations. If a dealer neglects this responsibility repeatedly, it undermines the integrity of the regulatory system and can lead to a loss of trust in that dealership's operations.

The most significant consequence is the potential suspension or revocation of the dealer’s license. This action serves as a corrective measure to uphold the standards expected from dealerships, as timely payment of fees is crucial for maintaining operations and contributing to state revenues. A dealer losing their license means they can no longer legally operate, which could have dire financial implications for the business. Therefore, maintaining good standing with payment obligations is essential for the longevity and legitimacy of a dealership.