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Legislature Approves Holden’s Consumer Bill to Protect Used Car Buyers at ‘Buy Here, Pay Here’ Lots
News Jul 22, 2015
- Photo by Terry Miller
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On July 16, the state Assembly gave final approval to Assemblymember Chris Holden’s (D-Pasadena) bill to rein in predatory used car dealerships. AB 265 – Buy Here, Pay Here – now goes to Governor Brown for signature.
“There is a growing segment of the used car business that targets low income workers with poor credit – these are the lenders of last resort for many Californians. But the cost for this kind of credit is steep and defaults are common,” stated Assemblymember Holden. “This measure provides hard working Californians the extra flexibility they need to make payments, stay in their vehicles, and provide for their families.”
Under AB 265, Buy Here, Pay Here dealerships must provide a five to 10-day notification period before a remote kill device can be used to disable a car for lack of payment. Current law requires only a 48 hour warning before a car can be disabled due to late payments, or insurance cancellation or even a clerical error. The bill also increases penalties for violations of these laws.
According to the National Alliance of Buy Here, Pay Here Dealers, the average dealer sold 610 cars in 2013 with an average profit of more than $4,500. There are more than 33,000 dealerships across the country.
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