Cars

Beginning on July 1 2006 California granted its carbuying residents a new set of protections under the Car Buyers Bill of Rights Not only will these new rights change the way cars are bought and sold in California theyre already spreading across the
Beginning on July 1 2006 California granted its carbuying residents a new set of protections under the Car Buyers Bill of Rights Not only will these new rights change the way cars are bought and sold in California theyre already spreading across the country and being adopted by other states as well

The protections under the new law apply to vehicles cars trucks SUVs purchased in California for personal use from a dealerdealership They do not apply to private sales out of state purchases commercial vehicles RVs and motorcycles

What are the protections

1 The Two Day Return

Used car buyers now have the opportunity to protect themselves with a twoday return option This is designed to help buyers who may not have had the time to have the vehicle properly inspected by a mechanic for those who are purchasing a car as is or for those car buyers who might have succumbed to the pressure to buy on the spot

There are a few limits on the twoday return protection First the option only applies to used vehicles purchased through a dealership for personal use that cost 40000 or less Second the dealership can charge you for this option anywhere from 75 to 400 plus a restocking fee all depending on the price of the vehicle Additionally the vehicle must be returned within two days having been driven fewer than 250 miles and be in the same condition as when it was purchased

2 TradeIns

With the twoday return option the dealer is required to hold onto your tradein until the option expires If the dealer sells your tradein early youre entitled to the vehicles fair market value or the price listed in the cancellation agreement whichever is more

3 Certified Used Cars

In the past any used car that a dealer has had inspected by a mechanic could be advertised as a certified preowned vehicle This is no longer the case Dealers can no longer advertise or sell certain problem cars as certified preowned vehicles

4 Seller Disclosures

Under the new law auto dealers must provide the following in writing

a The price of the vehicle without extra options and addons

b The specific price for addons such as antitheft devices fabric protection extended service contracts and gap insurance

c A copy of your credit score if youre getting a loan through the dealership Your credit score will range from 300 to 900 and reflect your credit worthiness as primarily determined by the timeliness of your past loan payments If your credit score is high enough you can often benefit from lower interest rates

5 Limit On Interest Rate Markups

Its a common practice in the industry for auto lenders to pay dealers an incentive for getting buyers to pay a higher interest rate than they should be paying according to their credit history This additional boost in the interest rate is referred to as a markup The new California Car Buyers Bill of Rights limits the markup a dealer can receive from a lender to a maximum of 25 for loans up to 60 months and to 2 for longer loans

The New California Car Buyers Bill of Rights is designed to make it safer for you to purchase your next used vehicle through a dealership without fear that youre going to get stuck with something you either dont want or something that doesnt live up to its advertising Knowing your rights can save you both months of headaches and significant money but only if you take advantage of them