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Dealers Spared Huge Bond Requirement Increase |
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Written by Ted Craig
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Thursday, 22 October 2009 09:39 |
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California added yet another requirement for car dealers, but eliminated language from the new law that would have required a $100,000 independent dealer bond.
An early version of the so-called California Car Buyers’ Protection Act called fro a dealer bond of $100,000 for independents and $250,000 for franchise dealers. Both currently pay $50,000.
The end effect on the law as passed is dealers must pay outstanding liens on traded-in vehicles before they trade or sell the vehicle, and payment must occur within 21 days.
An extra $25 was tacked onto dealers' original license application fees and renewal fees. That money goes directly to the Department of Motor Vehicles’ Division of Investigations, said Bill Dohring, lobbyist for the Independent Automobile Dealers Association of California.
Dohring said the association pushed hard for earmarking the money to root out problem dealers.
“You’re really after a small number of dealers,” he said.
Dealers dodged a bullet this time, Dohring said, but California legislators continue placing new restrictions on car sales high on their agendas. |
