SACRAMENTO, Calif. -- California’s Senate Judiciary Committee has joined the State Assembly, car dealers and consumer groups to support AB 68 (Montañez), known as the Car Buyer’s Bill of Rights. The bill requires credit score disclosure, defines certified used cars and provides additional consumer benefits and protections.
"As amended, the bill is a win-win situation for consumers and dealers," said Peter Welch, president of the California Motor Car Dealers Association. "It provides first in the nation protections to new- and used-car buyers while preserving the ability for dealers to sell cars, and continue their contributions to the state’s economy."
The bill addresses a long list of issues that improve the car buying experience. Two of these include:
2-day Contract Cancellation Option. Dealers will be required to offer and charge no more than $250 for a contract cancellation option agreement that would permit the buyer to cancel the purchase of a used vehicle priced under $40,000 within two days following the sale. To make the contract cancellation option more affordable, Senate amendments include a tiered pricing system for lower-cost vehicles. (Example: $75 maximum contract cancellation fee for vehicles whose cash price is $5,000 or less, or $150 for vehicles between $5,000 and $10,000.)
Payment Packing. The bill prohibits the deceptive practice of packing products into a contract for the purchase of a vehicle without the customer’s knowledge or consent. The bill also requires dealers to provide consumers with a document comparing the "Installment Payment Including Listed Items" and the "Installment Payment Excluding Listed Items." This will allow consumers to make a side-by-side comparison of the proposed monthly payment with and without such additional items.
With this new version, AB 68 is now expected to move back to the Assembly and on to the governor’s desk.
