You’ve heard of ”lemon laws” and, like countless others, wondered why there are no protections in place for used car buyers. Buying a used car requires research, automotive knowledge, and a scrupulous dealer. Unfortunately, the number of scrupulous dealers have been increasing. The California legislature decided to remove little of the guesswork.
”This bill unleashes the power of technology to provide first in the nation consumer protections, cut red tape, and help save the state millions,” said bill author Bob Blumenfield (D-San Fernando Valley) . ”Buying a car, especially a used one, requires some detective work to determine its safety and value. By requiring junk cars and death traps to be flagged with a warning sticker, consumers can see these vehicles for what they really are when shopping for a car.” Here are a few aspects of the new law.
Implements a requirement that car dealers post a red sticker on the used cars they sell if they have been flagged in the National Motor Vehicle Title Information System as a junk, salvage, or flood vehicle. Requires new car dealers to use electronic vehicle registration for new and used car sales starting next July, saving the state $9 million. Reduces to 90 days the time that consumers can drive without permanent license plates.
This law is the result of years of complaints from California auto loan consumers and used car buyers who have seen their investments go sour. Hopefully, other states will see success in California and move to spread the protections to everyone.