Golf Cart, Utility Vehicle or LSV? Five Steps to a Quick ID

The recent tax incentives for low speed vehicles have everyone running to the trough of compliance culminating in ads selling LSV’s supported by pictures that aren’t. With the fast paced rise of this vehicle class it seemed reasonable to abandon our tendency to focus on people and instead focus more on product and how you could be putting assets at risk by the absence of verification.

Many great golf cart dealers have thrived in one of the most unregulated business segments available in motorized products by entering into LSV’s which require a highly specific code of transacting business. LSV’s are automobiles for use on public roads and governed with strict guidelines on distribution, pricing and training. Not knowing these guidelines can have a devastating impact to your dealership long after the short term gain of a quick sale.

Window Sticker?

Did your car arrive with a Monroney sticker commonly referred to as a Window Sticker? The US Code Title 15 Chapter 28 requires it. Were the seat belts tested to ANSI standards or shipped to you in a box to be bolted on in an effort to turn existing inventory into LSV’s? The later may well put you at significant risk. Transitioning from dealer to manufacturer from a legal position is remarkably simple and free of any alerts that would otherwise cause you to pause.

The Five Step Challenge Before Saying YES
1: Look at the first 3 digits of the 17 digit VIN code commonly known as the WMI code. Write it down and be sure to go look it up at www.nhtsa.dot.gov/cars/rules/manufacture/ to make sure it matches the company selling it to you. No VIN, No LSV!
2: Visit the NHTSA web site at www.nhtsa.gov and search for FMVSS 500. The LSV standard will only take a few minutes to run through. If anyone is selling you a vehicle without a windshield, they aren’t selling an LSV. Be extremely leery of transitioning existing inventory from golf cars to LSV’s. While an LSV can be a golf cart, it can be quite difficult the other way around.
3: Ask for a copy of their product liability insurance. Does it cover the LSV category? What insurance company currently insures them for on-road use?
4: Review their MSO to assure it is compliant with your own state standards. In some states this is fairly complex.
5: Clues it’s not an LSV: Container discounts, bolt on lights, stick on mirrors, folding windshield, lift kit, off road tires, negotiated sale, no tag holder, glued on VIN number, no visible conformance label stating it is an LSV.

Don’t let the IRS letter fool you, they merely approve what the company submitting the application states it is. Additionally, there are reporting requirements and failure to follow them may void the credit being provided.

Protect Deep Pockets

Some dealers are larger than the company selling the product and unknowingly could be the “deep pockets” in the business transaction. Risk containment is a new process historically of little concern because it was handled by the manufacturers but those assumptions are no longer valid. Don’t confuse quality with size. Several emerging companies are doing it right and building great products. If you are offered a ridiculously low price for today’s LSV which was yesterday’s golf car, put them to the thirty minute test.

Safety Sells

Safe operation will continue to enhance and grow this segment but it does require an investment. Emergency brakes that are interlocked to the ignition, and pedal groupings that do away with the traditional golf car toe brake, are positive features along with Occupant Protection Systems with tip over bars tied to the frame and lateral stability tests. These features all assist in enhancing a safe ride.

Safe rides will sell more cars. As the dealer you play a key role in both the selection process prior to selling a brand, and in training prior to making the sale. Just check and inspect. That simple thirty minute research on your part may well be the most profitable time of your day.

Questions or comments should be directed to plottingthecourse@tomberlin.net.