Used car buyers get help in California

Buying a used car is always somewhat of a risk for buyers. Unlike purchases of new cars, which are protected by lemon law statutes in all 50 states, buyers of used cars are generally on their own. Few states have any sort of protection for used car buyers at all. As such, anyone who decides to buy a second hand car is at the mercy of the honesty of the dealer.

Buyers in California can now breathe a little easier as state legislators have passed what has been called a Bill of Rights for used car buyers. The law, which took effect in July, 2006, offers protections for buyers of second hand cars that are at the forefront of consumer protection in the United States.

While the law has a number of provisions, the most significant of them is the two day return privilege that buyers may opt to purchase. The return privilege, which is sold as an option by dealers, allows buyers to return a car within two days of purchase for any reason whatsoever, provided that the car has not been driven more than 250 miles. The price of the option will vary according to the price of the car, with a cap of $250 on cars priced at up to $30,000. Cars that sell for more than $30,000 are exempt from the law in order to prevent customers from buying and returning cars just for joyrides.

In addition to the option, dealers may also charge a restocking fee if the customer elects to return the car. The option price is deductible from the restocking fee. Dealers insisted upon a restocking fee because a returned car must be cleaned, tested for safety, and inspected in order to make sure that the temporary owner didn’t replace any parts while he or she had the vehicle.

The price of the option is negotiable; it is possible, though unlikely, that some dealers may not charge for it. The ability to return cars will protect consumers from what is undoubtedly their biggest fear - that the car will break down the minute that they drive it off the lot. In many states, used cars are sold on an as-is basis, and cars that break down after leaving the dealership become the problem of the new buyer.

Other provisions of the new law limit the amount of money a dealer may make from financing through a third party and require dealers to present potential buyers with a price list of the vehicle both with and without additional options.

California was at the forefront of the creation of lemon laws for used vehicles. Perhaps this new Bill of Rights will be the start of some sweeping changes throughout the country regarding the sale of used cars. More consumer protection is always a good thing.

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