Again leading the nation in consumer protection and legislation of automobiles, California Governor Arnold Schwarzenegger signed AB68, the California Car Buyer's Bill of Rights, into law on July 26.The new law:
- Requires car dealers to offer a two-day cancellation option for used cars selling for less than $40,000. The maximum a dealer can charge for the option is $250.
- Defines specified standards under which a "certified" or similar term for used or pre-owned motor vehicles can be sold.
- Requires car dealers to tell consumers the lowest finance rate they qualify for, and if the seller of a vehicle arranges a loan for the buyer, the seller must disclose the buyer's credit score as reported by an identified credit reporting agency.
- Requires that dealers cap their finance rate markups at 2.5 percent for loans up to 60 months, and 2 percent for loans over 60 months.
- Requires that dealers must notify buyers of the cash price and the financing cost of any extra items, such as fabric protection or extended service contracts.
- Gets rid of hidden charges in auto loans by prohibiting a dealer from adding charges to the contract after negotiating the terms of a vehicle sale or lease.
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