California lemon law aided by Bill of Rights

California lemon law aided by Bill of Rights

California’s lemon law, one of the first in the nation, has now been “accessorized” by the addition of the Car Buyer’s Bill of Rights, which will aid those who buy used cars.

Car Buyer’s Bill of Rights a big help for used car buyers

California became the first state in the country to pass an auto “lemon law” in 1982, and that pioneering legislation remains one of the most powerful, consumer-friendly laws in the country. It has, without a doubt, saved millions of dollars in headaches for consumers who have been troubled by defective automobiles who would otherwise have had to just “live with it.” Unfortunately, the California lemon law covers new cars only, and those who purchase used cars in California have still been expected to take risks. What if the car has hidden defects? What if the seller knows something bad about the car that he or she isn’t saying? Until now, the sole responsibility fell upon the buyer.

Signed into law by Governor Arnold Schwarzenegger in late July, the Car Buyer’s Bill of Rights offers a significant change in the way used cars are sold in California। Buyers will now have the option of returning a used vehicle to the point of purchase after a two day “cooling off” period. This gives buyers an opportunity to get to know their vehicles and, with luck, a chance to find any defects or problems with the vehicle that were either unknown or undisclosed at the time of sale.

Those in the used auto industry have expressed concern over the legislation, which has been steadily refined over the past several years. As originally written, the law would allow any buyer to return a car after two days with no charge and no penalty. This, dealers argued, would effectively allow consumers to “borrow” a car for two days for free, spawning fears that people who just needed a car for a weekend trip to Palm Springs would “borrow” one rather than rent one.

The legislature listened to these concerns and others and addressed them in the new law. Buyers will pay a fee in order to enable the return privilege. This fee may not exceed $250. This will still give buyers the opportunity to save a bit of money should they be willing to take the traditional risks associated with buying a used vehicle. In addition to the upfront fee, dealers will be permitted to charge a restocking fee for any returned vehicle. This fee is capped at a maximum of $500. The law applies to all used cars of under $40,000, including certified used cars.

While the law allows consumers to return a car for any reason at all, the bill does require that the vehicle in question be driven no more than 250 miles during the cooling off period. This is an attempt to further restrict consumers from simply “borrowing” the car for two days.

Legislators hope that this new law will add more transparency to the process of selling cars and will entice sellers to be more forthright about any problems the vehicles on their lot might have. There’s no point in hiding a defect if the consumer has the right to find it and return it two days later. In addition, consumers are now protected against “buyer’s remorse”, should they decide, for whatever reason, that buying the vehicle just wasn’t a good idea.

This law seems like a good compromise, protecting consumers against fraud while protecting dealers against abuse by buyers. We hope to see similar laws passed in other states soon.

If you have a car, van or truck, you must insure your investment. Auto insurance may be pricey, but why pay too much if you don't have to? InsureMe can provide a speedy price quote from an insurance company near where you live at a price that is competitive.

California lemon law aided by Bill of Rights

California’s lemon law, one of the first in the nation, has now been “accessorized” by the addition of the Car Buyer’s Bill of Rights, which will aid those who buy used cars.

Car Buyer’s Bill of Rights a big help for used car buyers

California became the first state in the country to pass an auto “lemon law” in 1982, and that pioneering legislation remains one of the most powerful, consumer-friendly laws in the country. It has, without a doubt, saved millions of dollars in headaches for consumers who have been troubled by defective automobiles who would otherwise have had to just “live with it.” Unfortunately, the California lemon law covers new cars only, and those who purchase used cars in California have still been expected to take risks. What if the car has hidden defects? What if the seller knows something bad about the car that he or she isn’t saying? Until now, the sole responsibility fell upon the buyer.

Signed into law by Governor Arnold Schwarzenegger in late July, the Car Buyer’s Bill of Rights offers a significant change in the way used cars are sold in California। Buyers will now have the option of returning a used vehicle to the point of purchase after a two day “cooling off” period. This gives buyers an opportunity to get to know their vehicles and, with luck, a chance to find any defects or problems with the vehicle that were either unknown or undisclosed at the time of sale.

Those in the used auto industry have expressed concern over the legislation, which has been steadily refined over the past several years. As originally written, the law would allow any buyer to return a car after two days with no charge and no penalty. This, dealers argued, would effectively allow consumers to “borrow” a car for two days for free, spawning fears that people who just needed a car for a weekend trip to Palm Springs would “borrow” one rather than rent one.

The legislature listened to these concerns and others and addressed them in the new law. Buyers will pay a fee in order to enable the return privilege. This fee may not exceed $250. This will still give buyers the opportunity to save a bit of money should they be willing to take the traditional risks associated with buying a used vehicle. In addition to the upfront fee, dealers will be permitted to charge a restocking fee for any returned vehicle. This fee is capped at a maximum of $500. The law applies to all used cars of under $40,000, including certified used cars.

While the law allows consumers to return a car for any reason at all, the bill does require that the vehicle in question be driven no more than 250 miles during the cooling off period. This is an attempt to further restrict consumers from simply “borrowing” the car for two days.

Legislators hope that this new law will add more transparency to the process of selling cars and will entice sellers to be more forthright about any problems the vehicles on their lot might have. There’s no point in hiding a defect if the consumer has the right to find it and return it two days later. In addition, consumers are now protected against “buyer’s remorse”, should they decide, for whatever reason, that buying the vehicle just wasn’t a good idea.

This law seems like a good compromise, protecting consumers against fraud while protecting dealers against abuse by buyers. We hope to see similar laws passed in other states soon.

If you have a car, van or truck, you must insure your investment. Auto insurance may be pricey, but why pay too much if you don't have to? InsureMe can provide a speedy price quote from an insurance company near where you live at a price that is competitive.