California lawmakers are are hoping to protect working families by imposing tough new rules on “Buy Here Pay Here” automobile dealerships. Assemblyman Mike Feuer introduced the bill last week saying that it would limit unfair sales and collection practices used by these dealerships. Some of the changes include:
- Dealerships would be required to display the price of the vehicles on the car where customers can see it.
- Customers would not be forced to make payments in person at the dealership.
- Dealers would not be allowed to call personal references after the sale is complete.
- Dealerships would not be allowed to install GPS trackers or devices that can remotely shut down vehicles.
Lobbyist for the Independent Automobile Dealers Assn. of California, say that enforcement, rather than new regulations, would be a better way to handle problems with Buy Here Pay Here dealers. They say that the new bill would impose additional costs on all dealerships, putting legitimate dealers out of business. In the end, people with bad credit will find it even harder to get an affordable and reliable vehicle.