Tee Up Your Next Deal with Black Book Mobile Now with Complete Market Report availability.
www.usedcarnews.com
June 4, 2012
Free Trial 888-760-2667
Buy-Here, Pay-Here Bills Move Forward By Jeffrey Bellant
Rush - Dated Material
The California State Assembly is nearing a vote on two of three bills that would change the way buy-here, pay-here dealers do business in the nation’s largest car market. A.B. 1447, sponsored by Democrat Assemblyman Mike Feur, was being scheduled for a third reading before the full assembly at press time after passing through the judiciary and appropriations committees. The bill would require dealers using GPS or tracking units on vehicles to have a buyer’s written consent. It would also set parameters on the use of starter interrupt devices. The bill would also prohibit dealers from requiring a buyer to make
payments to the seller in person, except for the down payment. It would also require a dealer to provide a buyer with a written limited warranty that covers most major components and lasts for at least 30 days or 1,000 miles. Violations of the proposed law would result in a misdemeanor offense punishable by up to six months in sale and/or a fine of up to $1,000. A second bill, A.B. 1534, sponsored by Assemblyman Bob Wieckowski (D-Fremont), also passed the appropriations committee. It would require that dealers affix a label to each vehicle for sale stating its “average market value,” determined within the last 60 days. It would also require the dealer to provide the purchaser with a copy of any information obtained by a nationally recognized pricing guide that was used to determine the average market value. A third bill introduced in the state Senate, S.B. 956, would require buy-here, pay-here dealers to obtain a California Finance Lender’s license. It would also change grace periods on repossessions and make it easier for buyers to reinstate a repossessed car and impose a cap on interest rates.
Photo by Andrew Craft REVVED UP: Chris Martin stands on the lot at his store in North Carolina. The second-generation dealer takes the reins of the NIADA at this month’s convention.
NIADA President Brings Finance Background (Chris Martin, president of E-Z Auto, in Fayetteville, N.C., is the incoming president of the National Independent Automobile Dealers Association.) UCN: Tell us about your background and how you got into the used-car business. Martin: After graduating from North Carolina State University in 1988 with degrees in business management and economics, I went to work for Wachovia Bank in Burlington, N.C. I started in the sales finance department as a field representative, collecting past due accounts, counseling customers and reacquiring cars. While I was with Wachovia, I was able to move from sales finance into retail and finally corporate banking prior to leaving in 1995 to join dad at E-Z Auto in Fayetteville, N.C. Dad, a former drag racer (Buddy Martin of Sox and Martin), has been involved in the car business since he was a teenager. So I have been around cars and the car business all of my life, but I didn’t start really living, breathing and loving the car business until I went to work for dad in 1995.
Continued on page 8
IN THIS ISSUE b 5 0" 0,+ % ))"+$"0 * +6 dealers this year. – Page 3
b +%"&* %,010 ,**"/ & ) )&K ents meeting. – Page 14
b %,+,/0 - &/ ,# &+K%,20" finance pioneers. – Page 12
b "4 4" 0&1" ,##"/0 !" )"/0 #/"" online listings. – Page 20
TD Auto Finance
The first step to helping you grow your business? Going to the last page.
CYAN UCN_01.indd 1
TD Canada Trust
MAGENTA
YELLOW
BLACK 5/29/12 4:30 PM