Protect Consumers
2006 CHANGES IN CALIFORNIA LAW
California Car Buyer’s Bill of Rights became
law on July 1, 2006. The new law applies to motor vehicles
(cars,
mini-vans, SUVs and trucks) bought in California from a dealer
for personal, family or household use. (It does not cover
private sales between individuals, leased autos, vehicles
purchased or registered in another state, commercial vehicles,
recreational vehicles or motorcycles.)
Some provisions of the law:
1. You can purchase a two-day return option for used vehicles
that cost $40,000 or less. The return option charge may run from $75
to $400. The dealer may also charge buyers for the return option AND
a restocking fee if the vehicle is returned. Some dealers may offer
the return option and restocking fee for a lower price, or even for
free. You may want to purchase the return option if you did not get
the car inspected by your own trusted technician BEFORE you purchased
it, or if you are buying the car “As Is”. The return option
is a bargain if you will be faced with repair charges of thousands
of dollars. Be careful: you are only allowed limited use of the vehicle
before you return it under the option.
2. Auto dealers are required to make certain disclosures:
a. The price of the vehicle without the add-ons.
b. The specific price for add-ons like anti-theft devices,
fabric protection, extended service contracts and “gap” insurance.
These “extras” are often overpriced and unnecessary.
c. A copy of your credit score if you are getting a loan.
3. Auto dealers are limited on the percentage they can make
in arranging your auto loan: not more than 2.5% for a loan up to 60 months
long, or 2% for a longer loan. (Remember, dealers make money on the loans
and on the add-ons which can be a greater profit than on the car.)
Consumers for Auto Reliability and Safety (CARS) and Consumer
Action have a brochure which gives more detail. www.carconsumers.com
Delivery of Motor Homes outside California... Case law.
The California Court of Appeals, Second Appellate District,
made a decision which is not good for consumers.
Motor home dealers in California selling motor homes in California,
usually encourage their customers to take delivery of the motor home
outside of California. The dealer will take the motor home to Arizona
or Nevada for the customer to pick up. The buyer then leaves the motor
home outside of California for 90 days before bringing it back into California,
thereby avoiding paying California sales tax. This is legal according
to California’s State Franchise Tax Board. The dealers have preprinted
forms and procedures they use to accomplish this.
The problem is that in January, 2006, a Court of Appeal ruled
that even though the sale of the motor home was negotiated in California,
the motor home was in California and the contract signed in California,
taking delivery outside of California meant that the sale occurred outside
California and therefore California’s lemon law does not apply.
Davis vs. Newmar Corporation (2006) 136 Cal.App.275. The out-of-state
delivery scheme is a great benefit for the dealers and manufacturers
because they make a sale based on the sales tax savings AND do not have
to abide by California warranty laws even though they are doing business
in California. Financially this ruling is very good for the dealers and
manufacturers.
If you have a motor home which is defective and you took
delivery outside of California, you may still be able to enforce the
warranty through the federal laws.
2001 CHANGES IN CALIFORNIA LAW
The presumption that the manufacturer has had a reasonable number of attempts to repair a new motor vehicle now specifically addresses motor vehicles with a safety defect, allowing the manufacturer only two repair attempts.
2000 CHANGES IN CALIFORNIA LAW
The "presumption" that the manufacturer has had a reasonable number of attempts to repair has been enlarged from 12,000 miles/12 months to 18,000 miles or 18 months.
1999 CHANGES IN CALIFORNIA LAW FOR SMALL BUSINESS OWNERS!!
Until January 1, 1999, personal, family or household use (consumer) was protected under California's Song-Beverly Consumer Warranty Act. This meant that if a vehicle was used for business, it was not covered. The law was changed so that a person may have up to five (5) vehicle used for business and these will be covered under the Act.
It is important for independent business people to understand the difference between business use and consumer (personal, family or household) use.
Also, the 1999 revisions prohibit auto makers from forcing consumers to sign confidentiality agreements as a condition of having vehicles repurchased under lemon_law buyback provisions. California is the first state to prohibit confidentiality agreements. Now, when a consumer settles his case, he will be able to tell people about the defects.
Please contact your State Assembly representatives and State Senators
The manufacturers’ lobby has attempted to water down the Song Beverly Act (California’s lemon law) to make it more difficult for consumers to be successful in enforcing their warranties. Consumers need to work together to protect their laws!"
Consumer lobby vs. Manufacturer's lobby ...
There are a few people trying very hard to protect consumers, but there is certainly not a well-paid machine such as the manufacturers and insurance companies have.
If you are interested in supporting future legislation, contact your State Assembly representative, your state Senator and Consumers for Auto Reliability and Safety (CARS):
Consumers for Auto Reliability and Safety (CARS)
1303 J Street, Suite 270
Sacramento, CA 95814
Consumers cannot compete with the automobile giants and need the power/authority of the law to put them on a more level playing field should they purchase a "lemon".
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