There are three bills pending in the California state legislature that could negatively impact dealers and consumers.
According to "The Coalition to to Protect our Freedom to Drive," these bills are SB 956, AB 1534 and AB 1447. The Coalition's website states that some of the results of these bills would be:
- SB 956 will cap interest rates on retail installment sales and leases (which, in fact, don’t even have an “interest rate”) at a floating rate that, at the moment would be 17.25%. The current rate is far lower than the average credit card rate. The dealer in this case would be expected to carry a much higher amount financed at a lower rate, compared to credit cards that have a higher rate and lower average balances.
- AB 1447 will require an ambiguous and costly warranty mandate on all used cars sold in a Buy-Here, Pay Here, transaction. This mandate conflicts with existing California’s Uniform Commercial Code and Federal regulations permitting the sale of goods “AS IS.”
- AB 1534 will impose a regulation requiring dealers to affix a label to every car stating its “reasonable market value” – a vague term at best not taking into account the enormous differences between two similar make/model/year cars in vastly different condition. A disservice to consumers placing an equal value on two very different automobiles.
These are only a few of the changes these bills propose. You can read more on the Coalition's website. http://www.protectfreedomtodrive.com/#!bad-bills/vstc1=ab-1534
For Californians, the site also provides an easy way to get in touch with local assembly members and senators to ask them to vote No on these bills. Please share this, especially with those you know in California, to get the word out.