Nevada Administrative Code Chapter 97 - Contracts for Sale of Vehicles
Nevada Administrative Code (NAC) – Chapter 97: Contracts for Sale of Vehicles
NAC Chapter 97 establishes regulations related to retail installment contracts for the sale of motor vehicles in Nevada. These rules supplement the statutory framework found in Nevada Revised Statutes (NRS) Chapter 97.
🔑 Key Provisions of NAC Chapter 97
1. Standard Retail Installment Contracts
Dealers and sellers of vehicles must use standardized contract forms approved by the Nevada Commissioner of Financial Institutions.
These contracts must clearly disclose:
Cash price of the vehicle
Down payment
Amount financed
Finance charge and APR
Total of payments and payment schedule
Any late payment charges or default penalties
2. Form and Format Requirements
Contracts must be legible, in plain language, and printed in at least 10-point font.
Required disclosures must be prominently displayed—especially finance charges and payment details.
3. Prepayment Rules
Buyers have the right to prepay the remaining balance at any time without penalty (unless specified and allowed by law).
The contract must disclose any rebates of unearned finance charges if early payoff occurs.
4. Repossession and Default
If a buyer defaults, the seller may repossess the vehicle, but only under procedures that comply with NRS Chapter 104 (UCC) and NRS Chapter 97.
Contracts must include terms regarding default, repossession, and notice to the buyer.
5. Add-On Products
Any optional products (like warranties, GAP insurance, or service contracts) must be:
Itemized separately
Clearly labeled as optional
Included in the total price only if authorized by the buyer in writing
6. Disclosure of Credit Life/Disability Insurance
If offered, credit life or disability insurance must be optional and separately disclosed.
The buyer must sign a statement confirming they understand it is not required for loan approval.
7. Language Requirements
If a contract is negotiated primarily in a language other than English, a translation of the contract must be provided in that language before the buyer signs.
📘 Enforcement and Oversight
These rules are enforced by the Nevada Department of Business and Industry, specifically the Financial Institutions Division.
Violations can result in fines, license suspension, or revocation of the dealership’s license.
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