Auto Financing on Used Car Lots Said to be Predatory
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.
Image via Wikipedia
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.
Related articles
- Buyers Choosing Car Dealer Finance (confused.com)
- Used-car leases on upswing, but pitfalls abound (seattletimes.nwsource.com)
Related posts on loans for people with bad credit:
- How to Get an Auto Loan Despite Bad Credit How to Get an Auto Loan Despite Bad Credit It may be difficult to get approved for Auto loans when you have a splendid FICO score, but imagine just how much more difficult it would be when you have bad credit. So if…...
- Even with Bad Credit You Can Still Find Dealers in Buying a Car Even with Bad Credit You Can Still Find Dealers in Buying a Car Our Service The only way you can solve your problem in buying a car if you have a bad credit is to contact a dealer that engage on in-house…...
- Dealer, Buyer Argue About Failed Car Financing Plan Dealer, Buyer Argue About Failed Car Financing Plan At the Texas Truck Headquarters located in San Pedro, Rafael Diaz wanted to buy a 2004 Mazda RX8. According to Diaz, he gave a down payment of $2,000 on the car. Then, someone told…...
- Knowing the Three Great Financing Options for Car Finance Knowing the Three Great Financing Options for Car Finance In terms of buying your new or used car, there is more than one way you can fund your purchase. While it is possible to repay cash for a vehicle, 80% of…...
- How You Can Get a Blank Check Auto Loan Even with Poor Credit History? How You Can Get a Blank Check Auto Loan Even with Poor Credit History? A blank check will help you to buy the ideal car despite of your bad credit history. The best place to look for blank check auto loans…...
Tagged with: automobile • California • Car dealership • Los Angeles Times • Used car • Vehicle
Filed under: auto loans
Like this post? Subscribe to my RSS feed and get loads more!