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California wants to regulate state used car Buy Here Pay Here lenders

Jul 09, 2012 Philip Burgess

Used car dealers that aim to help consumers who have poor or no credit could be regulated by the state of California if lawmakers pass the proposed legislation. According to the Los Angeles Times, one of the three potential laws would require that the used car dealers to post fair-market valuations on each car they sell to a consumer. Under the second bill, dealers would have to provide limited warranties of 30 days on every car. The third proposed law would enforce the registration of used car companies as finance lenders with the California Department of Corporations. Additionally, dealers would have an interest cap on loans of 17 percent, says the news source. Many used car businesses across the state believe the bills would force many dealers to close and California would lose millions of dollars per year in sales tax revenue. However, other companies across the nation are continuing their efforts to help consumers with little credit. recently announced it has redesigned its website to aid customers in their search for a used car. The company provides online loan and interest rate tools for individuals to look at when making the decision to purchase a used car.