AzMotorNews

If the Governator gives it a go, California could become the first state in the nation to have a car buyer's bill of rights.

The California Assembly passed the bill last week, and it is now waiting for Gov. Arnold Schwarzenegger's signature.

What makes this bill so impressive is that it's a compromise worked out between consumer groups and the California Motor Car Dealers Association. It doesn't address all the problems consumers potentially face, but it definitely makes a dent.

It establishes a two-day "right of return" for people who buy used cars. Consumers who pay a fee between $75 and $400 (based on the value of the vehicle) will have the right to return that car within two days. They can't drive it more than 250 miles during that period, and they could face a restocking fee.

It makes something called payment packing illegal. That's where unethical dealers add extra items to pump up the monthly payment. Before car buyers leave a California dealership, they'll be given a separate list of everything included in their new car payment.

The bill will limit the amount of profit that car dealers can make on financing. They can only charge an additional 2.5 percent interest on contracts that are less than 60 months, and 2 percent for contracts over 60 months. In other words, if a dealer finds a bank to fund a 48-month loan at 6 percent, by law the consumer wouldn't pay more than 8.5 percent.

Dealers who tell buyers their credit score will also have to disclose how it affects their financing.

According to California dealer spokeswoman Marcella Rojas, "Consumers are generally happy about the car-buying experience. It just provides more protection for both consumers and dealers. It also shows the Legislature is serious about improving the car-buying experience."

The bill also heads off an initiative that was on its way to the ballot. If passed it would have placed even more restrictions on car dealers.

Is it perfect? Of course not. I'm sure consumer groups wanted more and dealers wanted less. But more importantly, it's impressive that both sides were able to agree on a compromise.

There are a lot of wacky things that go on over in California. It doesn't sound like the Car Buyers Bill of Rights is one of them.

Reach Call 12 for Action from 11 a.m. to 1 p.m. weekdays at (602) 260-1212

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