Car-deal law has power, hitches

http://www.sacbee.com/content/politics/ca/story/13304843p-14147119c.html

Car-deal law has power, hitches

Governor, consumer groups compromise on buyer protections.

By Gary Delsohn -- Bee Capitol Bureau

Published 2:15 am PDT Wednesday, July 27, 2005

Gov. Arnold Schwarzenegger signed legislation Tuesday that provides new protections to Californians against unscrupulous car dealers, but consumer activists called it watered down.

"There's no question that come July 1 of next year, when a person goes to buy a car, they will have significantly stronger protections than they do today," the bill's author, Assemblywoman Cindy Montañez, D-San Fernando, said after Schwarzenegger signed the legislation.

Among other things, the "Car Buyer's Bill of Rights," Assembly Bill 68, requires dealers to offer a two-day "cooling off" period, during which customers could return a used car that sold for $40,000 or less and get a full refund.

Dealers could charge up to $250 for the option in a nonreturnable, upfront fee, as well as a "restocking" charge of up to $500.

Consumer activists originally sought a three-day "cooling off" period with no fees owed to the dealer other than mileage.

Montañez's bill - the result of an intensely negotiated compromise among her, car dealers, Schwarzenegger's office, legislative Democrats and consumer activists - headed off a much tougher pro-consumer version that had been targeted for November's special-election ballot.

"The ballot initiative was a lot stronger on all points," said Rosemary Shahan, president of Consumers for Auto Reliability and Safety, which sponsored the legislation. "That would have been a model for other states.

continued