For how long should a dealer retain records related to vehicles sold or leased?

Dealers are required to retain records related to vehicles sold or leased for a period of six years. This duration is established to ensure compliance with various regulatory requirements, including consumer protection laws and financial auditing processes. Keeping records for this length of time helps in tracing transactions, addressing potential disputes, and providing necessary documentation if issues arise with the sale or lease of a vehicle. Adequate retention of these records is crucial for maintaining transparency and accountability within the auto industry.

While shorter retention periods may seem practical, they do not adequately support the need for comprehensive record-keeping, which can be vital for potential investigations or warranty claims that may surface after a sale. Retaining records indefinitely may pose risks related to data privacy and storage, whereas retaining them for two years or five years does not align with the established requirements set forth by regulatory bodies that govern automotive sales and leases.