AB 1447 Provides Needed Regulation for “Buy Here, Pay Here” Auto Sales Industry
January 5, 2012 (SACRAMENTO) – Yesterday Assembly Member Mike Feuer (D-Los Angeles) introduced legislation to rein in abusive practices of the “Buy Here, Pay Here” car loan industry. AB 1447 increases transparency of vehicle sales prices, encourages sellers to make fair deals with buyers, and protects buyers from harassment and invasions of privacy.
“This industry preys on people who have no other options for getting a car,” said Feuer. “In many parts of our state, auto travel is the only way for parents to get to work on time, or to pick their kids up from school. Instead of helping Californians get back on their feet by providing needed transportation, these dealers are promoting an endless cycle of debt and joblessness.”
AB 1447 would:
- Require auto dealers to display the sales price of a vehicle on the vehicle.
- Prohibit dealers from requiring buyers to make scheduled payments to the seller in person.
- Following the sale of a vehicle, prohibits the seller from calling the buyer’s references, tracking the buyer’s vehicle with GPS technology, or disabling the vehicle with ignition override technology.
“Buy Here, Pay Here” auto sales are one of the few means of accessing transportation for consumers who cannot qualify for conventional auto loans because of poor credit or low-paying jobs. As reported in a 3-part series by the Los Angeles Times in late 2011, many individuals agree to burdensome loans because they need cars to get to work and stay employed. But many buyers find themselves unable to pay inflated loans, ending up deeper in debt. And such sellers have little incentive to ensure that loans are paid back, as they can easily repossess cars and re-sell them to new buyers.
Assembly member Mike Feuer’s website: http://www.assembly.ca.gov/a42
