Car buyer’s bill of rights passed in California

California became the first state to pass a lemon law for defective cars in the early 1980’s. The state has now taken this effort towards consumer protection one step further by passing a car buyer’s bill of rights, designed to offer even greater protections.

More below.

When a lemon law isn’t enough, a car buyer’s bill of rights is passed

In the twenty five years or so since the first lemon laws were passed, consumer protection law has improved a great deal. The manufacturers of defective automobiles used to have all of the say in whether a car with a problem would be fixed, replaced, or even considered at all. When California passed the first lemon law in 1982, other states took notice, and now all 50 states offer some degree of consumer protection for people who buy new, defective cars.

In the eyes of the California legislature, that law doesn’t go far enough. The state has recently signed into law a new Car Buyer’s Bill of Rights, which is designed to extend and enhance the rights granted by the lemon law.

• The new bill, ten years in the making, offers new protections, including the following:
• A two day return privilege for buyers of used cars - Consumers are no longer stuck if the vehicle dies five minutes after they leave the dealership. The new law permits them to return the vehicle on a no-questions-asked basis for up to two days after they take possession of it. The dealership is permitted to charge for the privilege, as preparing a returned car for resale does take time and resources. Fees are expected to charge between $75 and $400 for this service, although the amount is negotiable.
• The law requires auto dealers to provide potential customers with a comparison list showing the total price of the car both with and without additional options. 
• Buyers who finance their purchase through the dealer must be provided with a copy of their credit score.
• The law provides maximum markups for interest on loans offered through the dealer. The financing is actually done through other lenders, but dealers often take a cut of the financing.
• Cars sold as certified used cars must meet new, tougher regulations that prohibits cars with certain types of damage from being sold as certified.

Few states offer any type of protection for buyers of used cars. For buyers of second hand vehicles, the matter is usually regarded as “buyer beware.” Unless the dealer offers some sort of warranty, buyers are stuck if the vehicle breaks down at any time after it leaves the dealer’s lot. The California law goes a long way towards making it easier to return a car that offers some sort of problem immediately after purchase.

As with the lemon laws, this sort of legislation will probably expand to other states. It seem unlikely that a similar bill of rights will be passed in all states, as some states’ lemon laws come pretty close to being hostile to the consumer already. But it does represent a step in the right direction. Consumers in others states would benefit tremendously if their legislators took California’s lead. The greater the protections are for consumers, the less likely that dangerous or defective vehicles will be offered for sale to the public.