Learning More about the Used Car Buyers Bill of Rights

Serving Los Angeles, Riverside, Ventura, San Bernardino Counties & Nearby Areas of California

Starting in July of 2006, consumers purchasing a used vehicle in California were given new protections under the Used Car Buyers Bill of Rights. The following are some of the protections, according to the Department of Consumer Affairs:

 

  • The consumer’s right to cancel the sale. For used vehicles that cost less than $40,000.00, consumers have the right to cancel the sale within two days if they change their mind about the purchase. Depending on the vehicle’s price, the fee for this option is between $75 and one percent of the purchase price for vehicles costing more than $30,000.00 but not more than $39, 999.99. Additionally, if the consumer returns the vehicle, the dealer can charge a restocking fee between $175 and $500 minus the cancellation fee.
  • Written disclosure about your credit score. Dealers must provide a “Notice to Vehicle Credit Applicant” document, which discloses:
    • The credit score obtained and used by the dealer and the name of the credit reporting agency providing the credit score to the dealer;
    • The range of possible credit scores established by the credit reporting agency that provided the credit score;
    • The address and telephone number of each credit reporting agency providing a credit score that was obtained and used by the dealer.
  • Finance fee caps. If a dealer obtains financing on your behalf, the dealer compensation from an institution financing the purchase of a vehicle is limited to no more than:
    • 2 percent of the purchase amount for contracts with a term of more than 60 months; or
    • 2.5 percent of the purchase amount for contracts with a term of 60 months or less.

This limitation does not apply when the assignment requires the dealer to bear the entire risk of financial performance for you or when the assignment is more than six months after the date of the conditional sales contract.
 

Consumers are granted certain rights under the California lemon law that offer them protection if they purchase a sub-standard vehicle. If you believe you have purchased a lemon vehicle in California, contact Howard D. Silver at (855) 341-2611 to learn how Mr. Silver can protect your rights today.

 

Posted Date: 
Wednesday, February 18, 2015