AB 1447 (Feuer)
Automobile sales finance: sellers.
The Rees-Levering Motor Vehicle Sales and Finance Act regulates conditional sales contracts for motor vehicles, and, among other things, requires a person selling or leasing a motor vehicle under a conditional sale contract to disclose certain information to the buyer of the vehicle.
A willful violation of those provisions is a misdemeanor and may render the contract unenforceable. A seller who violates the provisions of the act may also be liable to the buyer for monetary damages.
This bill requires a buy-here-pay-here dealer, as defined, to issue a 30-day or 1,000-mile warranty to the buyer or lessee of a used vehicle bought or leased at retail price, and would require the warranty to cover the engine, transmission, drive axle, front and rear wheel drive components, engine cooling system, brakes, front and rear suspension systems, steering, seatbelts, inflatable restraint systems, catalytic converter or other emissions components, heater, seals and gaskets, electrical, electronic, and computer components, alternator, generator, starter, and ignition system.
The bill requires the buy-here-pay-here dealer to either repair those covered parts that fail or, at the buy-here-pay-here dealers election, to cancel the sale or lease and reimburse the buyer or lessee, as specified.
The bill requires the buy-here-pay-here dealer to pay 100% of the cost of labor and parts for any repairs under the warranty.
The bill voids any sales agreement for the purchase or lease of a vehicle that waives, limits, or disclaims these requirements.
The bill provides that a warranty is deemed to have been issued if a buy-here-pay-here dealer fails to issue a warranty pursuant to these provisions.
The bill prohibits a buy-here-pay-here dealer from requiring the buyer to make payments in person, with the exception of the downpayment for the vehicle,
The bill prohibits the buy-here-pay-here dealer from repossessing the vehicle or charging a penalty following timely payment of a deferred downpayment.
The bill prohibits the buy-here-pay-here dealer from, after the sale of the vehicle, tracking the vehicle using electronic tracking technology and from disabling the vehicle with starter interrupt technology, except as specified, and would make a violation of these prohibitions a misdemeanor punishable by a fine of up to $1,000.
The bill also makes findings and declarations related to buy-here-pay-here dealers, and would authorize the Department of Motor Vehicles to promulgate any necessary regulations.
The federal buyers guide must be posted to reflect a 30 day 1000 mile warranty if buy here pay here financing is offered within the dealership.
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