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Used Car Buyers Bill Of Rights:
This law gives buyers new protections when buying a used car, including the right to cancel the contract within 2 days.
Effective July 1, 2006
This law is known as the “Used Car Buyers Bill of Rights.” It applies mostly to used car sales, but some provisions apply to new car sales too. These are some of the most important points:
- Right To Cancel (Vehicle Code 11709.2): Dealers are now required to give used car buyers the right to buy an option to cancel the sale within 2 days if they change their mind. The fee for this option is $75 to $250, depending on the price of the car. If the buyer returns the car, the dealer can also charge him a return fee of $100 to $250. This law does not apply to new cars or used cars that are sold “As Is.”
- Packing (Civil Code 2982): Packing happens when a dealer adds items such as alarms, fabric protection, and window tinting to the price of the car so that the buyer does not really know how much he is paying for these add-ons. The law now requires dealers to itemize the add-ons to let the buyer decide whether he wants to buy them. This law applies to all car sales, new and used.
- Best Interest Rate (Insurance Code 11713.20): Dealers often charge buyers interest rates that are higher than they qualify for. The law now requires dealers to tell buyers their credit score, and the loans they qualify for based on it. This law applies to new and used car sales.
- High Interest Rates (Civil Code 2982): The law used to let dealers negotiate the interest rate they charged buyers. The finance company or bank would then give the dealer a portion of the overcharge (the difference of what the buyer qualified for and what he was charged). The law now caps the amount the dealer can get back from the finance company or bank to no more than 2.5%. This is supposed to reduce the incentive for dealers to charge buyers interest rates that are much higher than what they qualify for. This law applies to new and used car purchases.
- Certified Used Cars (Vehicle Code 11713.18): Dealers or manufacturers used to be able to call any vehicle “certified.” The law now prohibits them from calling “certified” vehicles that are repurchased lemons, have salvage or junk titles, have had their odometers rolled back, or have had frame damage. The law also requires dealers to give buyers a copy of the inspection report done to “certify” the car.
Action: DCA’s Consumer Services Unit takes complaints against dealers that break this law. They also take complaints against dealers for purchase-related violations.
For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
web site: dca.lacounty.gov