Review on Used Car Industry in California

A major development in the used car industry in California is the California Lemon Law (here after the Law). This law applies to all used cars sold with a written and specific warranty. The law is not applicable if the car has been purchased for commercial use. The Law only covers a second-hand car that was purchased for personal, family or household use. The law is also applicable to leased vehicles, as long as they have been leased under warranty. Under the Law, one can get a refund or complete satisfactory repairs done for a used car or leased vehicle as easily as one can for a brand-new car, if the used car was purchased for private, non-commercial use.

Secondhand cars are not the only vehicles covered by the California Used Car Lemon Law. It applies equally to recreational vehicles (RVs), motor homes of all kinds, motorcycles, boats and other vehicles. You must ensure that the defects and inherent problems of the car are recognized by a certified mechanic at the time of purchase. If the vehicle was bought without warranty that covers these defects, then the buyer will have a very difficult time making a case under the California Used Car Lemon Law.

California car buyers have important new rights beginning July 1, 2006. California has lately put into effect a car buyer’s Bill of Rights. The Car Buyer’s Bill of Rights will change the way millions of cars are bought and sold in California. The new Bill applies to motor vehicles bought in California from a dealer for personal, family or household use, including cars, minivans, SUVs and trucks. Some provisions in the law cover only used cars, while others cover both new and used cars.
This new law offers a number of protections for buyers of used cars. The bill is yet to take a perfect shape – however it is a step in the right direction. There are numerous provisions in the bill, but perhaps the most significant is the option offered to buyers to return the car to the dealer within two days if they are not satisfied with it. There is no need for any defect to be present in the car; buyers may return it for any reason or for no reason at all. This will protect buyers against any problems that suddenly manifest immediately after the car is taken delivery. The dealers are permitted to charge a small fee for the return privilege. Highly priced cars are however exempt from this law.

To return the car within the stipulated two days, you must have driven the car fewer than 250 miles. You should make sure the vehicle is in the same condition it was when you bought it. Make copies of the contract and other purchase documents because you are required to deliver your originals to the dealer. Keep your copies in a safe place. Return the vehicle and the original paperwork in person before the date and time noted on your contract. Sign the written notice of cancellation which the dealer provides and keep your copy.

While the option to return the car may involve some fees, many used car buyers are still be grateful for this favorable aspect of the law. Other provisions of the law require dealers to show prospective buyers price lists for the vehicle both with and without any additional fittings. The law also restricts the quantum of money that the dealer may make for financing a vehicle through a third party.This law does not apply to private sales between individuals, leased autos, vehicles purchased or registered in another state, commercial vehicles, recreational vehicles and motorcycles.