California governor Schwarzenegger has signed a ‘car buyers’ rights’ bill, a comprehensive measure described by a dealers association as “the product of countless hours of negotiations between the governor’s office, legislative leaders, consumer groups and car dealers”.
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Among its provisions, the bill addresses the fraudulent practice of ‘payment packing’ and requires specific monthly payment disclosures to curb the practice, provides for a two-day contract cancellation option for used cars, imposes limits on dealer finance income, requires credit score information be made available to consumers, and defines ‘certified used cars’.
Consumers can purchase the two-day cancellation option for used cars under $US40,000, and return the car for any reason. The tiered pricing system for the option makes the benefit more affordable to low-income consumers and those with poor credit.
The provisions of the bill will become operative on July 1, 2006.
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