BOOK IT. BANK IT. M
www.usedcarnews.com
September 17, 2012
O
B
I
L
E
Try it FREE. www.GoBlackBookMobile.com/Free
Buy-Here, Pay-Here Bills Move Ahead By Jeffrey Bellant
Rush - Dated Material
Representatives of the used-car industry warned the recent passage of three California bills dictating new rules for buy-here, payhere dealers would hurt the industry and drain state coffers of tax revenue. At press time, bills awaited Gov. Jerry Brown’s signature to make the measures law. The bills, AB 1447, AB 1534 and SB 956, could be signed into law before the end of September. At press time, Larry Laskowski, executive director of the Independent Automobile Dealers Association of California, said it still was “up in the air” as to what Brown would do. Laskowski immediately
issued a “call to action” email to dealers in the state. “It is not too late to stop these bills from becoming law,” his email states. “The governor can veto the bills, but we must act to let him know how bad they will be.” Laskowski warned that even dealers who sell subprime notes could be affected under recourse agreements. “There would be a ripple effect that would go out through the industry,” Laskowski said. The bills address various aspects of buy-here, payhere transactions. AB 1447, authored by Assemblyman Mike Feuer (D-Los Angeles), would require buy-here, pay-here dealers to provide a written warranty covering most major components that lasts 30 days or 1,000 miles. It also prohibits requiring customers to make regular payments in person and requires dealers to receive written consent from the buyer prior to selling a vehicle equipped with electronic tracking technology. The bill also adds requirements regarding disclosure of starter-interrupt technology in the vehicle, along with providing advanced warning to the driver prior to the car being disabled. AB 1534, written by As-
Photo by The Associated Press LAST HOPE: Gov. Jerry Brown discusses current legislation. The last chance for dealers to stop new buy-here, pay-here regulations is a veto from the governor.
semblyman Bob Wieckowski (D-Fremont), would require dealers to post window stickers on inventory stating the “reasonable market value.” The third bill, SB 956, from Sen. Ted Lieu (D-Torrance), would require buyhere, pay-here dealers to obtain a California Finance Lenders license. It also would limit usedcar installment loans to no more than 17 percent interest, plus a variable interest rate, which is 0.25 percent at press time. The bill would require
these dealers to offer grace periods and make it easier to reinstate a repo. Bill Dohring, a lobbyist for the IADAC, said of the three bills, SB 956 is the worst since it also requires dealers to obtain an additional $2,500 bond. Dohring was upset that he couldn’t persuade any member of the Democratic Party on the issue. “Well it is simply amazing that I could not get one ‘no’ vote from the (Democrats),” he said. Dohring also said nondealers must make their
voices heard, too. “Every vendor who does repair, smog (checks), and mechanic work should write letters in opposition because of the revenue they will lose and the loss of jobs they love,” Dohring said. He said an injunction could be possible since he believes all three bills violate the Equal Protection Clause of the Constitution. Brown has until the end of the month to sign the bills. If he neither signs nor vetoes the bills, he could allow them to take effect on Jan. 1, 2013 without his signature.
IN THIS ISSUE b +"4 ) 4 /".2&/"0 "*&00&,+0 1"01 for used cars. – Page 3
b " %+,),$6 !/&3"0 % +$"0 &+ 1%" transport business. – Page 8
b ,6,1 +! ,)(04 $"+ )"! .2 )K &16 / +(&+$0F M $" <
b !3 + "0 &+ )&$%1&+$ %")- * (" inventory shine. – Page 17
• No fees. No hassles. Just savings. • Save thousands per month. • Join today at no cost!
Sign up today at: DealersUnited.com