California Bill Would Prohibit Dealer Reserves
SACRAMENTO--The California Assembly Judiciary Committee recently passed AB 1839, a bill that seeks to regulate auto dealers. The so-called "Car Buyer's Bill of Rights" would forbid commissions, up-charges, dealer reserves or other compensation for arranging financing. The bill was re-referred to the Assembly Appropriations Committee on April 14.
SACRAMENTO--The California Assembly Judiciary Committee recently passed AB 1839, a bill that seeks to regulate auto dealers. The so-called "Car Buyer's Bill of Rights" would forbid commissions, up-charges, dealer reserves or other compensation for arranging financing. The bill was re-referred to the Assembly Appropriations Committee on April 14.
Assemblywoman Cindy Montanez introduced the legislation in January with the support of several consumer protection groups. If passed, the proposed law would also:
Give car buyers a three-day period to cancel the contract for any reason
Force dealers to disclose a buyer's credit score
Force dealers to disclose the lowest rate the buyer qualified for from a lender
Define what qualifies as a certified used or pre-owned vehicle
Opponents of the bill include:
Alliance of Automobile Manufacturers
California Bankers Association
California Financial Services Association
California Motor Car Dealers Association
California Motorcycle Dealers Association
California Recreation Vehicle Dealers Association
CarMax Auto Superstores
General Motors Acceptance Corporation
General Motors Corporation
Independent Auto Dealers Association
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