Car buyer Bill of Rights takes effect
By Erica Holt, Bay City News Service
July 1, 2006
Californians who buy a used car from auto dealers will be allowed
to return it within two days for a full refund, under a new law
that takes effect July 1 requiring dealers to offer the option
for a fee.
Gov. Arnold Schwarzenegger signed the California Car Buyers Bill
of Rights into law last year.
Californians are the now the only ones in the nation who can
pay a fee and have the option to return a used car valued below
$40,000 to a dealer's lot within two days of purchase, according
to the legislation.
"This law gives car buyers significant new rights, but also
allows dealers to charge consumers for the used car return option,''
said Joe Ridout in a statement, manager at Consumer Action, a
nonprofit advocacy group supporting the bill.
The law also prohibits "loan packing,'' a common scam that
involves deceiving a buyer about a car's price so that they think
certain add-ons are free, according to the Consumer Action.
The bill includes a cap of 2.5 percent on kickbacks for dealers
on loans of less than 60 months and 2 percent for longer loans
to prevent inflated interest rates for consumers.
Consumer Action advises potential car buyers to get cars checked
out independently before making a purchase and to review its brochure
on the bill of rights at http://www.consumer
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