Governor Inks Strict New Rules for Used-Car Deals

This is from the Los Angeles Times:

SACRAMENTO -- Gov. Arnold Schwarzenegger today approved legislation giving California the nation's strictest rules governing the way car dealers market used cars and pad expenses into financing deals.

Dubbed the "Car Buyers' Bill of Rights," the legislation, which takes effect July 1, 2006, resolves years of disputes between the state's powerful auto dealers and consumer advocates, who struck a compromise that averted a threatened ballot measure that would have sought tougher regulations.

Dealers will be required to explicitly detail all the items in a purchase price and monthly loan payments, where, consumer advocates complained, dealers sometimes included expensive extras such as "theft etch" protection and extended service contracts.

The law also limits which cars can be advertised as "certified used," a term that has gained popularity as a way to persuade customers that the car is in very good shape. Under the new law, it will become a misdemeanor crime to designate as "certified" any car with a damaged frame, rolled-back odometer or "Lemon Law" buyback, as well as cars being sold "as is."

But the signature element of the legislation — allowing displeased car buyers to return used vehicles for a refund — was significantly watered down from its original version in the Legislature.

Instead of guaranteeing that anyone who wanted to return a car within three days of purchase could do so, the law will now allow car buyers to pay extra for the option of returning a car within two days, so long as the car cost less than $40,000 and was driven no more than 250 miles.

Car dealers, who opposed a similar proposal last year, supported this year's version after it was amended to allow dealers to charge up to $250 for the right to return a car after only two days.

Is this a strict new rule governing used-car deals? So if a consumer buys a car, under $40,000, and wants to return in within three days, will have to pay the dealer an additional $250 charge? And I guess if the individual doesn't want to pay that optional $250 charge, he or she is stuck with the car? And if the individual does pay for this option, and still keeps the car, the individual just added another $250 to the dealer's profit. Looks like the Governator caved into the used-car lobby on this "bill of rights." And what if an individual buys a used Hummer (obviously priced above the $40,000), drives it for three days and wants to return it? Is that individual also required to pay a fee?

A used-car bill of rights? What a crock.