CAR BUYERS’ BILL OF RIGHTS ACT (cont'd)

(e) Car dealers often attempt to sell after-market items such as service contracts, fabric protection, alarms and vehicle theft products to consumers without disclosing the true monthly cost of those items. Dealers commonly engage in "loan packing" to disguise the actual monthly cost of these products. Car dealers should be required to disclose the actual monthly cost of after-market items, so that consumers can make an informed decision about purchasing these products.

Section 3: Purpose and Intent.

          In order to ensure that used car buyers have the same rights as the buyers of many other products, to ensure that they are not overcharged by dealers for arranging a loan or for the purchase of after-market items, and to ensure that the "certified" used cars they buy meet specified standards for quality, the people of the State of California do hereby enact the Car Buyers’ Bill of Rights Act. This measure is intended to accomplish its purposes by amending the Civil Code to:

(a) Permit buyers of used cars to return a car to a car dealer within three days of purchase, for a full refund, minus a reasonable charge for mileage, and require car dealers to disclose this right in the sales contract;

(b) Require car dealers who arrange loans for buyers of cars to disclose the buyer’s credit score and the lowest interest rate for which the buyer qualifies from the lender and prohibit car dealers from charging more than $150 to arrange a loan for the buyer;

(c) Require that "certified" used cars be inspected by technicians qualified to inspect for collision repair and mechanical condition and prohibit car dealers from advertising or selling "chop jobs," "gray market" cars, daily rental cars, taxicabs, police cars, fleet vehicles, or cars that that have sustained material damage or that have had their odometers rolled back, as "certified" used cars; and

(d) Require that car dealers disclose to car buyers the actual monthly cost to the buyer of after-market items.

Section 4: Section 2982.2 is added to the Civil Code to read as follows:

           Section 2982.2. (a) For the purposes of this section, "seller" means a person engaged in the business of selling or leasing motor vehicles under any motor vehicle sale contract, including a conditional sale contract. "Seller" does not include a private individual who is not required to be licensed to sell vehicles in California.

(b) Notwithstanding Section 2982 or any other provision of law, the buyer of any used or pre-owned motor vehicle has the right to cancel a motor vehicle sale contract, including a motor vehicle conditional sale contract, until midnight of the third "business day" after the day on which the buyer signs an agreement or offer to purchase.