Bill > SB1283

This bill proposes to amend the definition of a "buy-here-pay-here" dealer, which refers to a car dealership that finances its own sales rather than selling the loan to a third-party finance company. Currently, a dealer is considered "buy-here-pay-here" if they assign less than 90% of their conditional sale contracts (agreements where a buyer makes payments over time to purchase a vehicle) and lease contracts to unaffiliated third parties within 45 days of the contract's completion. This bill would extend that deadline to 46 days, meaning a dealer would still be considered "buy-here-pay-here" if they assign less than 90% of these contracts within 46 days. This change is significant because "buy-here-pay-here" dealers are subject to specific regulations, including prohibitions on disabling vehicles with starter interrupt technology unless certain conditions are met, and violations can result in criminal penalties. By slightly expanding the timeframe for assigning contracts, this bill could potentially bring more dealers under the "buy-here-pay-here" designation and thus subject them to these existing consumer protection laws, though the bill also states that no reimbursement is required for local agencies as the changes relate to existing criminal definitions.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB1283