California Auto Dealers Craft Compromise “Car Buyer’s Bill of Rights”

Washington DC June 1, 2005; AIADA's newsletter reported that the California Motor Car Dealers Association (CMCDA) has crafted a compromise bill with legislators supporting a "Car Buyer’s Bill of Rights." The new bill, AB68, replaces the original legislation sponsored by Assemblywoman Cindy Montanez (D-39).

Ms. Monanez supports the compromise bill, which imposes fees and restrictions on the three-day "cooling off period" issue, where consumers can return used vehicles bought for under $40,000. The new bill allows dealers to charge $250 to consumers to purchase this right, and also permits a $350 to $500 restocking fee to be charge as well. The compromise bill also agrees to limit dealer finance charges to 2.5 percent for contracts of 60 months or less and 2 percent for contracts over 60 months.

These as well as other key provisions are supported by the CMCDA. Senator Jackie Speier (D-San Francisco/San Mateo) is the bill’s principal coauthor, which now has a July 1, 2006 operative date.