AB 1447 (Feuer)
Automobile sales finance: sellers.
The Rees-Levering Motor Vehicle Sales and Finance Act regulates conditional sales contracts for motor vehicles, and, among other things, requires a person selling or leasing a motor vehicle under a conditional sale contract to disclose certain information to the buyer of the vehicle.
A willful violation of those provisions is a misdemeanor and may render the contract unenforceable. A seller who violates the provisions of the act may also be liable to the buyer for monetary damages.
This bill requires a buy-here-pay-here dealer, as defined, to issue a 30-day or 1,000-mile warranty to the buyer or lessee of a used vehicle bought or leased at retail price, and would require the warranty to cover the engine, transmission, drive axle, front and rear wheel drive components, engine cooling system, brakes, front and rear suspension systems, steering, seatbelts, inflatable restraint systems, catalytic converter or other emissions components, heater, seals and gaskets, electrical, electronic, and computer components, alternator, generator, starter, and ignition system.
The bill requires the buy-here-pay-here dealer to either repair those covered parts that fail or, at the buy-here-pay-here dealers election, to cancel the sale or lease and reimburse the buyer or lessee, as specified.
The bill requires the buy-here-pay-here dealer to pay 100% of the cost of labor and parts for any repairs under the warranty.
The bill voids any sales agreement for the purchase or lease of a vehicle that waives, limits, or disclaims these requirements.
The bill provides that a warranty is deemed to have been issued if a buy-here-pay-here dealer fails to issue a warranty pursuant to these provisions.
The bill prohibits a buy-here-pay-here dealer from requiring the buyer to make payments in person, with the exception of the downpayment for the vehicle,
The bill prohibits the buy-here-pay-here dealer from repossessing the vehicle or charging a penalty following timely payment of a deferred downpayment.
The bill prohibits the buy-here-pay-here dealer from, after the sale of the vehicle, tracking the vehicle using electronic tracking technology and from disabling the vehicle with starter interrupt technology, except as specified, and would make a violation of these prohibitions a misdemeanor punishable by a fine of up to $1,000.
The bill also makes findings and declarations related to buy-here-pay-here dealers, and would authorize the Department of Motor Vehicles to promulgate any necessary regulations.
The federal buyers guide must be posted to reflect a 30 day 1000 mile warranty if buy here pay here financing is offered within the dealership.
AB 1534 (Wieckowski)
Vehicles: dealers: used vehicle sales: labeling requirements.
Existing law regulates the accuracy of information provided to consumers during vehicle sales, including the information contained in advertising, brochures, and manuals, as specified.
Existing law also requires manufacturers, as specified, to disclose certain information regarding a vehicles engine, as specified, by affixing a label on the vehicle. A violation of these provisions is an infraction.
This bill requires a licensed dealer, as defined, to affix to and to prominently and conspicuously display a label on any used vehicle offered for retail sale that states the reasonable market value of the vehicle.
The bill requires the label to contain specified information used to determine the vehicles reasonable market value and the date the value was determined.
The bill requires a licensed dealer to provide to a prospective buyer of the used vehicle a copy of any information obtained from a nationally recognized pricing guide that the licensed dealer used to determine the reasonable market value of the vehicle.
The bill requires the label to meet all the following conditions:
a) Be in writing with a heading that reads “REASONABLE
MARKET VALUE OF THIS VEHICLE” in at least 16-point bold
type and text in at least 12-point type.
b) Be located adjacent to the window sticker identifying
the equipment provided with the vehicle, or if none,
located prominently and conspicuously on the vehicle.
c) Contain the information used to determine the reasonable
market value, including, but not limited to, use of a
nationally recognized pricing guide for used vehicles, and
the date the reasonable market value was determined.
d) Indicate that the reasonable market value is being
provided only for comparison shopping and is not the retail
sale price or the advertised price of the vehicle.
The bill defines “nationally recognized pricing guide” as including,
but not limited to, the Kelley Blue Book, Edmunds, the Black
Book, or the National Automobile Dealers’ Association (NADA)
we make it simple for you
car dealer education