Sec. 78.1. Introduction

(a) Section 415 of the Vehicle and Traffic Law, as amended effective January 1, 1963, provides that no person shall engage in business as a dealer, or represent or advertise that he is engaged or intends to engage in such business in New York State unless there shall have been issued to him a certificate of registration as provided in subdivision 7 of section 415 of the Vehicle and Traffic Law. Therefore, any individual, firm, corporation, copartnership or association engaged in the business of buying, selling or dealing in motor vehicles, motorcycles or trailers, other than mobile home trailers, at retail or wholesale, shall be required to make application for registration with the Commissioner of Motor Vehicles and shall not be permitted to engage in the business unless the application is approved and a certificate of registration issued. Any person who sells, or offers for sale, more than five motor vehicles, motorcycles or trailers, other than mobile home trailers, in any calendar year or who displays or permits the display of three or more motor vehicles, motorcycles, or trailers, other than mobile home trailers, for sale at any one time or within any one calendar month upon premises owned or controlled by him, if such vehicles were purchased, acquired or otherwise obtained by such person for the purpose of resale, will be regarded as a dealer.

(b) A dealer engaged in business consisting in whole or in part of buying, selling or dealing in motor vehicles, motorcycles or trailers at retail shall be required to register as a retail dealer.

(c) A dealer engaged in business consisting exclusively of buying, selling or dealing in motor vehicles, motorcycles or trailers at wholesale is required to register as a wholesale dealer.

(d) A person engaged in the business of buying motor vehicles, motorcycles or trailers for the purpose of dismantling the same for parts, or reselling such vehicles as scrap is not considered to be a dealer, and is not required to register as a dealer solely by reason of such business. In any month, a dealer who classifies 25 percent or more of vehicles sold as salvage on the certificates of sale, form MV-50, must register as a vehicle dismantler.