Calif. Consumer Group Withdraws Fee Cap Proposal
The Alliance for a Better Calfornia withdrew a proposal it made that would limit car dealers' finance profits to $150 and allow customers to cancel their used-car sales contracts within a three-day cooling period.
The Alliance for a Better California withdrew a proposal it made that would limit car dealers' finance profits to $150 and allow customers to cancel their used-car sales contracts within a three-day cooling period.
The consumer group collected enough signatures to put the "Car Buyer's Bill of Rights" on the November 2005 ballot, but struck a compromise with the California Motor Car Dealers Association(CMCDA) and state legislators. The compromised terms will be incorporated into new state legislation.
This legislation would limit dealers to a 2.5 percent markup on interest rates for loans up to 60 months, and a 2 percent markup on rates for longer loans. Also, dealers will be required to give customers the option to cancel their contracts within three days but will be able to charge up to $250 for the service.
Joe Nunez, chair of the alliance, and Peter Welch, executive director of the CMCDA, both agree this compromise is fair to both consumers and dealers.
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