HOLDEN’S NEW RULES FOR BUY HERE, PAY HERE CAR LOTS PASS ASSEMBLY (AB 265)
Sacramento - Assemblymember Chris Holden's (D-Pasadena) bill to reform the Buy Here, Pay Here used car industry has been unanimously approved in the Assembly and now goes to the Senate for consideration. The vote was 75 to 0.
Under AB 265, Buy Here, Pay Here dealerships must provide a 10-day notification before a remote kill device can be used to disable a car for lack of payment. Current law requires only a 48 hour warning before a car can be disabled due to late payments, or insurance cancellation or even a clerical error - and the consequences can be disastrous.
"The people using these dealers of last resort often have bad credit scores and limited incomes making them vulnerable to repossessions when a payment is late. This bill gives them several extra days to figure out how to find the money to make that payment," said Assemblymember Holden. "At the end of the day, keeping people in their cars, going to their jobs enables them to make their payments and that benefits both the driver and the dealer."
According to the National Alliance of Buy Here, Pay Here Dealers, the average dealer sold 610 cars in 2013 with an average profit of more than $4500. There are more than 33,000 dealerships across the country.
AB 265 has support from law enforcement, consumer groups as well as industry groups and has received overwhelming bi-partisan support in both policy and fiscal committees.