Car Dealers in Capitol's Fast Lane
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But the governor and the dealers opposed last year's bill by Assemblywoman Cindy Montanez (D-San Fernando) that would have allowed car buyers to return their vehicles within three days for a refund. The bill also capped the amount dealers could charge in financing cars, and required that they disclose to buyers how dealer rates compared with what they could get elsewhere.

In late July, as the proposal seemed likely to win legislative approval, the Department of Motor Vehicles condemned it in a strongly worded letter to lawmakers. Among other criticisms, the DMV faulted the bill's loan rules for placing "an unfair limitation on car dealers."

Even before the bill reached Schwarzenegger's desk, the dealers nearly persuaded Democratic senators to scuttle it.

"We heard from lawmakers that they were just being barraged," said Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a Sacramento group that's often at odds with the dealers. "They're in everybody's district. They're more powerful than the auto manufacturers are for that reason, because they're in everybody's face."

The Senate ultimately passed it after removing the three-day cooling-off period, but Schwarzenegger vetoed it in September. Montanez resurrected her bill this month with the cooling-off period restored.

Meanwhile, on behalf of an anonymous client, a San Leandro law firm with Democratic ties has filed paperwork with the state to begin collecting signatures for a "Car Buyers' Bill of Rights" initiative.

If enough signatures are collected, the measure could go before voters if Schwarzenegger calls a special election. The proposal would allow car returns within three days, prohibit dealers from charging more than $150 for arranging a loan, require dealers to itemize the monthly costs "of certain commonly overpriced add-on items" such as antitheft devices, and require that certified used cars come with "significant" warranties.

Welch, of the California Motor Car Dealers Assn., said dealers oppose a three-day return policy, as well as itemizations that would "probably add another foot and a half of disclosures" to sales documents that are "like 2 1/2 feet long right now."

But he noted that the group supported legislation last year to restrict unscrupulous dealers from adding unwanted charges to a contract, a tactic known as payment packing. Welch said dealers want to find agreement with legislators on financing rules and on what kinds of cars can be advertised as certified, but that they do not plan to launch any campaigns on the level of Proposition 64.

"Now that [Proposition 64] is fixed, we're more than willing to go back under the radar screen and just get down to business, selling cars," he said.

Others believe the dealers' heightened influence will continue."I think they've seen that, 'Wow, if we become mobilized and energized, we can become effective,' " said Campbell, the Republican senator. "I don't think they're going to go away."