THE
CAR BUYER'S BILL OF RIGHTS(AB - 68)
California's General Assembly passed the Car
Buyer's Bill of Rights on July 13th
The Legislation offers a contract cancellation option to consumers for a
three-day cooling-off period for used vehicles worth less than $40,000.
Dealers may charge up to $250 to a customer for this option. The consumer
must return the vehicle to the dealership in the same condition as it was
when purchased with all accompanying title contract and related documents.
Also, the dealer may charge up to a $500 restocking fee ($350 for vehicles
under $10,000), against which the consumer may credit the contract cancellation
price, if any, and the consumer assumes all legal liability for damage,
liens, tickets, etc. occurring prior to returning the vehicle. The dealer
need only offer the cooling-off period to a consumer once in a 30-day period
(to prevent repeated purchases and returns). Dealer finance income is also
limited to 2.5 percent for contracts of 60 months or less and 2 percent
for contracts more than 60 months. The final version of the Bill was accepted
by both consumer and dealer representatives.
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