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October 15, 2012
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Dealers Win Out: Worst of Three Bills Gets Vetoed 6 ,3"/+,/ By Jeffrey Bellant
Rush - Dated Material
California buy-here, payhere dealers and related industries were able to limit the impact of three proposed laws that would have placed strict restrictions on their operations. California Gov. Jerry Brown vetoed the most burdensome of the three bills passed by the legislature, although the two remaining bills will change how the buy-here, pay-here business is done. The Independent Automobile Dealers Association of California was relieved that Brown vetoed Sen. Ted Lieu’s SB 956, which would have required buy-here, pay-here dealers to obtain a finance lenders license. The bill also would have also capped interest on buy-here, pay-here retail installment contracts at the federal funds rate plus 17
percentage points. However, Brown signed two other bills addressing the buy-here, pay-here industry. AB 1447 will require buyhere, pay-here dealers to provide a 30-day, 1,000mile warranty. It also requires disclosure of payment assurance devices, warning before repossession and bars dealers from taking payments at their stores. AB 1534 will require posting of the retail valuation in File photo the window of the vehicle. STATE WARRIOR: California lobbyist Bill Dohring discusses legislation at this year’s Larry Laskowski, IADAC’s GOLDEN National Independent Automobile Dealers Association convention. The IADA of California and executive director, said his other groups managed to limit the extent of new buy-here, pay-here laws. group would work with the Department of Motor Ve- ness. New-car dealers have partment of Motor Vehicles to PATA executive director hicles to discuss the imple- a third party to administer is working on, or put a bill Jack Tracey. mentation and enforcement their warranties, Dohring in,” Dohring said. The PATA represents sellof the bills. said. He said there has to be ers of start-interrupt and Dohring said one of the Dohring believes there some way to explain to cus- GPS devices. larger concerns is AB 1447’s is some room to work with tomers why a vehicle’s price The educational prowarranty requirement. state officials. might be higher than what a cess included a white pa“We’re not opposed to givHe added that AB 1534 value guide states. per written by the Hudson ing a warranty,” he said, “as requiring dealers to post The Feuer bill was much Cook law firm. long as we can (recoup the a retail valuation on a ve- more challenging for dealTracey said he found cost of it).” hicle is difficult, since even ers in its original form. It Feuer’s staff had an open Dohring said the problem two identical vehicles, with completely banned the use mind about the technology. is the bill places no caps or similar mileage would have if any payment assurance What the legislation enddeductible restrictions on different values if one was technology. ed up requiring is already the warranty. owned by a smoker, for exHowever, the Payment As- recommended by most Even though a warranty ample. surance Technology Asso- PATA members. is not a service contract, a “We’ll either have to work ciation worked hard to edu“It’s reasonable to think dealer would have to act as a out an implementation cate legislative staff about there is some need for regucarrier to back up that war- (suggestion), which the De- their business, according lation,” Tracey said. ranty. The association wants the IN THIS ISSUE state to require that a third b %" 1&,+ ) 21, 2 1&,+ 00,K b 2 -/&*" #&+ + &+$ &0 /" !6 #,/ party administer the warciation meets in Florida. – Page 3 prime time. – Page 10 ranty, which would have to be an admitted carrier, b +!& + + *"0 3"1"/ + ,-"/ 1,/ b 0 )"0 1 5 /2)&+$ &0 !/&3&+$ 0 )"0 to protect the customer if as quality dealer. – Page 5 out of one state. – Page 16 4 10/8/12 11:15 PM a dealerDU-usedCarZineFrontAd2012-10DMS.pdf went out of busi-
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