The new law requires a two-day cancellation period for used car buyers and allows dealers to charge for the option. Brian Maas with the California Motor Car Dealers Association says the purchase option has made many dealers more accepting of the bill.
“Those that want to offer it for free can continue to do so but those who aren’t interested in offering the product can charge for it and that will allow consumers to shop for the best place to get a two-day option.”
But Rosemary Shahan with Consumers for Auto Reliability and Safety says an initiative supported by the CARS organization included stronger protections. She says her feelings about the new law are mixed.
“We’re still supporting the bill but we want to wait and see how it plays out in the real world."
The new measure also provides other new protections for car buyers including a cap on dealer mark-ups on loans. The new law goes into effect next July.