N.C. Gen. Stat. » Chapter 20
NC General Statutes

N.C. Gen. Stat. § 20-75.1 (2026)

Conditional delivery of motor vehicles

✓ laws through the 2026 session (checked Oct. 2026)
Find cases: SyfertCases citing this section NCLEGncleg.gov (official) JustiaChapter 20 CornellLII Search CasesGoogle Scholar

Notwithstanding G.S. 20-52.1, 20-72, and 20-75, nothing contained in those sections prohibits a dealer from entering into a contract with any purchaser for the sale of a vehicle and delivering the vehicle to the purchaser under terms by which the dealer's obligation to execute the manufacturer's certificate of origin or the certificate of title is conditioned on the purchaser obtaining financing for the purchase of the vehicle. Liability, collision, and comprehensive insurance on a vehicle sold and delivered conditioned on the purchaser obtaining financing for the purchaser of the vehicle shall be covered by the dealer's insurance policy until such financing is finally approved and execution of the manufacturer's certificate of origin or execution of the certificate of title. Upon final approval and execution of the manufacturer's certificate of origin or the certificate of title, and upon the purchaser having liability insurance on another vehicle, the delivered vehicle shall be covered by the purchaser's insurance policy beginning at the time of final financial approval and execution of the manufacturer's certificate of origin or the certificate of title. For conditionally delivered vehicles, the dealer shall execute the manufacturer's certificate of origin or the certificate of title. The purchaser or lessee shall be responsible for notification of the insurer or insurance agency servicing the purchaser's or lessee's insurance policy of the purchase or lease on the date the approval notice is received, or if the insurer or insurance agency is not open for business that day, on the next business day following approval of the purchaser's or lessee's financing. The purchaser shall be solely responsible for obtaining and paying for insurance on the purchased or leased vehicle, and the dealer shall under no circumstances be liable to the purchaser, lessee, or any third parties in the event the purchaser or lessee fails to timely obtain insurance on the purchased or leased vehicle. This subsection is in addition to any other provisions of law or insurance policies and does not repeal or supersede those provisions. (1993, c. 328, s. 1; 2023-116, s. 8(a).)

 

Notes of Decisions
Cited in 6 cases (2 in the last 5 years), 2009–2021 · leading case: Smith v. USAA Cas. Ins. Co., 819 S.E.2d 610 (N.C. Ct. App. 2018).
Sort: Relevance Newest Treatment
Smith v. USAA Cas. Ins. Co., 819 S.E.2d 610 (N.C. Ct. App. 2018). · cites it 12× “The trial court's determination as to the respective coverage obligations of Universal and Erie was based on the court's ruling that N.C. Gen. Stat. § 20-75.1 governed the sale of the Beetle to Pinto.”
Erie Ins. Exch. v. Smith, 856 S.E.2d 874 (N.C. Ct. App. 2021). · cites it 46× “The trial court determined “all necessary parties to this dispute have been joined and provided the opportunity to be heard in this matter.” Then, the trial court concluded the transaction between Pinto and Valley, as the dealer, was a conditional sale and delivery and “Pinto…”
Erie Ins. Exch. v. Smith, 856 S.E.2d 874 (N.C. Ct. App. 2021). · cites it 46× “The trial court determined “all necessary parties to this dispute have been joined and provided the opportunity to be heard in this matter.” Then, the trial court concluded the transaction between Pinto and Valley, as the dealer, was a conditional sale and delivery and “Pinto…”
Patterson v. Univ. Ford, Inc., No. 13-585 (N.C. Ct. App. Mar. 4, 2014). · cites it 5× “Instead, Plaintiff acknowledged that the trial court’s proposed instructions based on N.C. Gen. Stat. §§ 20-75.1 and 20-3-3(a) were correct statements of the law and stated, instead, that she could “make that work in [the] closing argument.”
Hester v. Hubert Vester Ford, Inc., 239 N.C. App. 22 (N.C. Ct. App. 2015). “Plaintiff correctly points out that transferring auto insurance to a consumer’s policy is only supposed to occur once financing is finalized and the consumer has taken title to the vehicle.”
Hicks v. Dunn-benson Ford, Inc., 680 S.E.2d 272 (N.C. Ct. App. 2009). · cites it 2× “N.C. Gen. Stat. § 20-75.1 (2007). Here, plaintiff obtained her own insurance for the Explorer.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.