What is the purpose of the Manufacturer's Certificate of Origin (MCO)?

The Manufacturer's Certificate of Origin (MCO) serves as an official document that establishes the chain of ownership from the manufacturer to the dealer. This document is critical in the vehicle registration process, particularly for new vehicles. By proving that the dealer is the first retail owner of the new vehicle, the MCO facilitates the transition of ownership from the manufacturer to the dealership, and ultimately to the consumer once the vehicle is sold.

Due to its function, the MCO plays an important role in establishing clear title and ownership, preventing issues related to ownership disputes. It is essential for the dealer to have the MCO when selling a new vehicle, as it is required by the Department of Motor Vehicles for registration purposes.

Options that refer to insurance coverage, loan agreements, or vehicle safety ratings do not address the primary role of the MCO, which is focused on ownership transfer from manufacturer to dealer. Therefore, the correct understanding recognizes the MCO as a key document in the ownership process rather than in insurance or financing matters.