Lawmakers are Setting Strict Rules on Buy Here Pay Here lots

Lawmakers of California are setting strict and new regulations on Buy Here Pay Here lots. This is a category of the used car business that sells cars with high mileage to individuals with bad credit.

Buy Here Pay Here lots are said to be exploiting many people and families because they oftentimes sell cars for prices that are greater than its market value and charge interest of as much as 30% for those who will take a loan for the purchase of the car. Moreover, these used car dealersare also known for their aggressiveness in repossessing unpaid cars in order to resell them again and again.

English: Caerleon Cars, Ponthir Road Used car ...

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The usual customers of this business are those belonging to low-paying jobs that require a vehicle to be able to go to work but cannot qualify for traditional auto financing. Since these car dealers offer their own loans without the need for external financing, they are able to sell their vehicles to those who do not have much choice.

Assemblyman Mike Feuer introduced AB 1447, a legislation that targets some collection and sales practices of Buy Here Pay Here dealers. Senator Ted Lieu and Assemblyman Bob Wieckowski also expressed their plan to introduce different bills aimed at regulating the practices of Buy Here Pay Here dealers. The move of these lawmakers came as a response to the different stories featured in the Los Angeles Times that discussed the practices of this type of used car lots.

Feuer’s bill will ask the dealers to visibly put the price of the vehicle on the car. Moreover, it will prohibit dealers from asking its customers to pay their car in person. Also, the dealers will not be permitted to contact personal references after the completion of the sale. Finally, the dealers are not allowed to install GPS devices or trackers on the vehicles that can shut them down remotely.

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