AZ HB2278

Exempts public consignment auction dealers from implied warranty of merchantability and emissions inspection requirements, except for vehicles purchased through wholesale auctions.

Requires public consignment auction dealers to post a sign indicating they may be exempt from certain provisions and to notify the Department of Transportation and Department of Revenue within 15 days of each vehicle transfer.

Imposes penalties of $8 for the first month and $4 for each additional month (up to $100 total) for failure to provide required transfer notices within 15 days.

Requires dealers to provide purchasers with written notice including vehicle details, bid price, commissions, and for non-wholesale vehicles, all documents required of used motor vehicle dealers.

Prohibits wholesale motor vehicle dealers from selling vehicles to public consignment auction dealers and prohibits public consignment auction dealers from purchasing vehicles from licensed dealers who have a shared interest in the auction dealer.