Assembly Passes Buy Here, Pay Here Consumer Bill

Sacramento – Assemblymember Bob Wieckowski’s (D-Fremont) bill to require “Buy Here, Pay Here” lots to have window stickers disclosing the reasonable market value on their vehicles passed the state Assembly this afternoon 46-27 and now goes before the Governor.

“Buy Here, Pay Here” lots comprise a growing segment of the used car industry, focusing on high interest loans for people with poor credit. Too often, customers end up with overpriced cars and exorbitant interest rates. The industry also uses predatory lending and pricing practices with harsh default terms and swift repossession practices.

“The process of buying a car is already one often filled with anxiety,” Wieckowski said. “This bill, (AB 1534) would not dictate the sale price asked by the dealer, but it would help level the playing field by requiring the sticker. This gives the consumers more information as they consider whether or not to purchase a vehicle. In these difficult economic times, it’s especially important that consumer protection measures are in place to assist low-income families and our military personnel who are too often victims of predatory practices.”

New cars have displayed the Manufacturers Suggested Retail Price on all new cars since 1958 with the passage of the federal Automobile Information Act.

Consumer groups are in strong support of increased regulations over the “Buy Here, Pay Here” lots. AB 1534 is supported by Consumers for Auto Reliability and Safety, Consumer Federation of California, California State Commanders Veterans Association, Consumer Action, the Center for Responsible Lending and the Auto Fraud Legal Center.