California Car Buyers Bill of Rights
(cont'd)

• Certified car prohibitions

Prohibits the sale of many types of problem vehicles as “certified” cars. Makes it a misdemeanor to advertise or sell lemon law buybacks, odometer rollbacks, improperly repaired rebuilt wrecks, or vehicles with frame damage as “certified.” Forbids selling vehicles as “certified” if the seller has disclaimed the warranty of merchantability, or is selling the vehicle “as is,” generally meaning the buyer accepts all its faults and is liable for paying for any repairs.

• Cap on dealer markups

Dealers will be prohibited from accepting more than 2.5 % in kickbacks on auto loans up to 60 months, or 2% for longer loans. This is aimed at curbing the worst predatory and discriminatory auto lending practices.

• Disclosure of credit score

Dealers will be required to provide car buyers who apply for a loan with the dealership’s assistance with a copy of their credit score. This is intended to make it easier for buyers to avoid being scammed by unscrupulous finance and insurance managers, who have been misleading purchasers about their creditworthiness. Most managers get a commission based on the amount of interest the consumer is charged.

• Disclosure of items commonly “packed” into auto loans

Dealers will be required to disclose, in writing, the price to purchase many expensive items commonly hidden in the monthly payment, inflating the amount car buyers pay. The items include “theft etch,” extended service contracts, “GAP” insurance, clear coat, and fabric protection.

• Prohibition on “loan packing”

The practice of adding hidden charges without the buyer’s knowledge and consent is prohibited.

To read the legislation, or check out the official analyses and votes, visit the California Assembly website, at http://www.assembly.ca.gov/acs/acsframeset2text.htm and enter the bill number, AB 68.