Vote Smart's Synopsis:

Bill that would authorize car dealerships to charge a document processing fee that may exceed the previous cap of $70-$85 if the charge does not exceed 1% of the total cost of the vehicle and does not exceed $260.

Highlights:

• Authorizes a vehicle dealer to charge a purchaser or lessee of a vehicle the following charges (Sec. 1):

• A document processing charge; and

• An electronic filing charge, not to exceed the charge of the dealer’s service provider.

• Prohibits any vehicle dealer from the following actions in relation to the sale or lease of a vehicle (Sec. 3-4):

• Advertising a vehicle without disclosing its model, model-year, and either the license number or portion of that number that distinguishes the vehicle from other vehicles of the same model and model-year;

• Advertising the total price of a vehicle without including all costs at the time of the sale;

• Representing the processing charge, electronic filing charge, or emission charge as a governmental fee;

• Failing to sell or lease a vehicle to a customer at the advertised price;

• Advertising or selling a vehicle of a model that the dealer does not hold a franchise agreement;

• Selling a park trailer without informing the vehicle purchaser that a permit under their respective jurisdiction is required to operate such a vehicle; 

• Advertising free merchandise contingent on the purchase of a vehicle;

• Advertising vehicles at a specified dealer price with the intent to inflate demand;

• Using “rebate,” or similar words, in the sale of a vehicle unless the rebate is in a specific dollar amount;

• Requiring a purchaser or lessee of a vehicle to pay a higher price for a vehicle with credit terms than the cash price a purchaser or lessee would have to pay;

• Advertising a guaranteed trade-in allowance;

• Misrepresenting the authority of a salesperson to finalize a transaction of a vehicle or goods and services;

• Using terms that refer to a dealer’s price for a vehicle as above, below, or at the manufacturer's invoice price to a dealer or the dealer’s cost;  

• Violating a law prohibiting bait and switch advertising or sale of a vehicle; 

• Making an untrue or misleading statement that a vehicle is fully factory equipped;

• Attaching to a vehicle a supplemental price sticker that exceeds the manufacturer's suggested retail price;

• Advertising an underselling claim without survey proof;

• Advertising an incentive offered by the manufacturer if the dealer is required to contribute to the payment of the cost as a part of the incentive program;

• Failing to disclose in writing to the franchisee the name of the vehicle’s purchaser, the date of sale, and the vehicle identification number; 

• Entering into contract for the retail sale of a vehicle that does not disclose whether the vehicle is new or used;

• Using a simulated check;

• Failing to disclose that a transaction is subject to a fee received by an autobroker; and

• Selling or leasing a vehicle, after October 1, 2012, unless the vehicle dealer has a contract with the Department of Motor Vehicles to be a private industry partner.

• Specifies that this Section takes effect January 1, 2031 (Sec. 4).

Full Bill Text

Vote Smart's Synopsis:

Bill that would authorize car dealerships to charge a document processing fee that may exceed the previous cap of $70-$85 if the charge does not exceed 1% of the total cost of the vehicle and does not exceed $260.

Highlights:

• Authorizes a vehicle dealer to charge a purchaser or lessee of a vehicle the following charges (Sec. 1):

• A document processing charge; and

• An electronic filing charge, not to exceed the charge of the dealer’s service provider.

• Prohibits any vehicle dealer from the following actions in relation to the sale or lease of a vehicle (Sec. 3-4):

• Advertising a vehicle without disclosing its model, model-year, and either the license number or portion of that number that distinguishes the vehicle from other vehicles of the same model and model-year;

• Advertising the total price of a vehicle without including all costs at the time of the sale;

• Representing the processing charge, electronic filing charge, or emission charge as a governmental fee;

• Failing to sell or lease a vehicle to a customer at the advertised price;

• Advertising or selling a vehicle of a model that the dealer does not hold a franchise agreement;

• Selling a park trailer without informing the vehicle purchaser that a permit under their respective jurisdiction is required to operate such a vehicle; 

• Advertising free merchandise contingent on the purchase of a vehicle;

• Advertising vehicles at a specified dealer price with the intent to inflate demand;

• Using “rebate,” or similar words, in the sale of a vehicle unless the rebate is in a specific dollar amount;

• Requiring a purchaser or lessee of a vehicle to pay a higher price for a vehicle with credit terms than the cash price a purchaser or lessee would have to pay;

• Advertising a guaranteed trade-in allowance;

• Misrepresenting the authority of a salesperson to finalize a transaction of a vehicle or goods and services;

• Using terms that refer to a dealer’s price for a vehicle as above, below, or at the manufacturer's invoice price to a dealer or the dealer’s cost;  

• Violating a law prohibiting bait and switch advertising or sale of a vehicle; 

• Making an untrue or misleading statement that a vehicle is fully factory equipped;

• Attaching to a vehicle a supplemental price sticker that exceeds the manufacturer's suggested retail price;

• Advertising an underselling claim without survey proof;

• Advertising an incentive offered by the manufacturer if the dealer is required to contribute to the payment of the cost as a part of the incentive program;

• Failing to disclose in writing to the franchisee the name of the vehicle’s purchaser, the date of sale, and the vehicle identification number; 

• Entering into contract for the retail sale of a vehicle that does not disclose whether the vehicle is new or used;

• Using a simulated check;

• Failing to disclose that a transaction is subject to a fee received by an autobroker; and

• Selling or leasing a vehicle, after October 1, 2012, unless the vehicle dealer has a contract with the Department of Motor Vehicles to be a private industry partner.

• Specifies that this Section takes effect January 1, 2031 (Sec. 4).

Full Bill Text

Vote Smart's Synopsis:

Bill that would authorize car dealerships to charge a document processing fee that may exceed the previous cap of $70-$85 if the charge does not exceed 1% of the total cost of the vehicle and does not exceed $260.

Highlights:

• Authorizes a vehicle dealer to charge a purchaser or lessee of a vehicle the following charges (Sec. 1):

• A document processing charge; and

• An electronic filing charge, not to exceed the charge of the dealer’s service provider.

• Prohibits any vehicle dealer from the following actions in relation to the sale or lease of a vehicle (Sec. 3-4):

• Advertising a vehicle without disclosing its model, model-year, and either the license number or portion of that number that distinguishes the vehicle from other vehicles of the same model and model-year;

• Advertising the total price of a vehicle without including all costs at the time of the sale;

• Representing the processing charge, electronic filing charge, or emission charge as a governmental fee;

• Failing to sell or lease a vehicle to a customer at the advertised price;

• Advertising or selling a vehicle of a model that the dealer does not hold a franchise agreement;

• Selling a park trailer without informing the vehicle purchaser that a permit under their respective jurisdiction is required to operate such a vehicle; 

• Advertising free merchandise contingent on the purchase of a vehicle;

• Advertising vehicles at a specified dealer price with the intent to inflate demand;

• Using “rebate,” or similar words, in the sale of a vehicle unless the rebate is in a specific dollar amount;

• Requiring a purchaser or lessee of a vehicle to pay a higher price for a vehicle with credit terms than the cash price a purchaser or lessee would have to pay;

• Advertising a guaranteed trade-in allowance;

• Misrepresenting the authority of a salesperson to finalize a transaction of a vehicle or goods and services;

• Using terms that refer to a dealer’s price for a vehicle as above, below, or at the manufacturer's invoice price to a dealer or the dealer’s cost;  

• Violating a law prohibiting bait and switch advertising or sale of a vehicle; 

• Making an untrue or misleading statement that a vehicle is fully factory equipped;

• Attaching to a vehicle a supplemental price sticker that exceeds the manufacturer's suggested retail price;

• Advertising an underselling claim without survey proof;

• Advertising an incentive offered by the manufacturer if the dealer is required to contribute to the payment of the cost as a part of the incentive program;

• Failing to disclose in writing to the franchisee the name of the vehicle’s purchaser, the date of sale, and the vehicle identification number; 

• Entering into contract for the retail sale of a vehicle that does not disclose whether the vehicle is new or used;

• Using a simulated check;

• Failing to disclose that a transaction is subject to a fee received by an autobroker; and

• Selling or leasing a vehicle, after October 1, 2012, unless the vehicle dealer has a contract with the Department of Motor Vehicles to be a private industry partner.

• Specifies that this Section takes effect January 1, 2031 (Sec. 4).

Full Bill Text