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New rule requiring 'valid passport' to register a vehicle could be impacting car sales. Here's why

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WPTV is listening to concerns from local car dealerships that are selling fewer cars after a new rule implemented by the Florida Highway Safety and Motor Vehicles Department that will require individuals wanting to register a car to have a valid document that authorizes lawful presence in the United States.

Those trying to register a car with a passport must originate from the United States, or have an unexpired passport issued by the government of another country with a mark affixed by the United States Department of Homeland Security (DHS). Other valid documents include an unexpired I-94, a current permanent resident card and an unexpired immigrant visa issued by the DHS.

Michael Melendez, owner of Mike Auto Sales, estimated his sales have dropped 75% over the last month. He said the administrative rule, that requires no new law go into effect, is making it more difficult to sell cars to undocumented migrants even if they are past customers.

“They are great, hard-working people,” Melendez said. “Recently, someone came over, who had purchased a car from me previously and he didn’t know about the [rule]. I said 'Listen, I’d love to sell you another car and I can’t. I’m losing all this business. It’s driving me nuts.'” 

Melendez, who brought two other smaller car dealerships, spoke with WPTV Reporter Ethan Stein with two other local smaller car dealers with similar stories of losing business. They believe undocumented migrants will start paying people with the proper identification to buy a car, then drive without registration or insurance.

“They hit somebody, they hurt somebody, nobody’s going to pay,” said Andres Cedeno and Eduardo Sued, owners of Auto Sales Center and Delta Car Trade.

The rule was not passed by legislature, but created by a state agency overseen by the Governor’s Office. Emails WPTV obtained show the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) asking county tax collectors on Sept. 5 to implement the rule starting Sept. 23, giving car dealers only two weeks to adjust to the rule.

WPTV reached out to the FLHSMV, who directed us to documents published on the Florida Administrative Code and Administrative Register’s website. Those documents show the state thought the policy was needed to “provide clarity regarding documentation” for the term “valid passport” in state law.

“The purpose of this rule is to provide clarity regarding documentation to be presented prior to the registering of a vehicle,” the document said. “The effect will be to allow the department to ensure compliance with state law when processing an application for a vehicle registration.”

According to the document, and despite the concerns of Melendez, Cadeno, Sued and other local car dealers, the agency determined it will not increase regulatory costs by $200,000 or harm small business.