Growing Support for Car Buyer's Bill Includes State Senate

Bill Creates First in the Nation Protections for Consumers

SACRAMENTO, Calif., June 14 -- The California Motor Car Dealers Association (CMCDA) announced today that the Senate Judiciary Committee has joined the State Assembly, car dealers and consumer groups to support AB 68 (Montanez). The bill requires credit score disclosure, defines "certified" used cars, and provides a variety of additional consumer benefits and protections.

"As amended, the bill is a win-win situation for consumers and dealers. It provides first in the nation protections to new and used car buyer's while preserving the ability for dealers to sell cars, and continue their contributions to the state's economy," said Peter Welch, CMCDA president.

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 later this month.

About CMCDA

The California Motor Car Dealers Association (CMCDA) is a statewide trade association that represents the interests of more than 1,400 franchised new car dealer members. For more information, visit CMCDA's Web site: www.cmcda.org.