Trade: vehicles; used motor vehicle cancellation option agreement; provide for. Creates new act.
Impact
The act stipulates that any used vehicle sold or leased for a purchase price of $50,000 or less must include this cancellation option. Additionally, the law lays down rules concerning the maximum fees that can be charged for this cancellation option, as well as any restocking fees incurred should a consumer decide to return the vehicle. This measure is expected to shift certain practices within the automotive industry, particularly impacting dealer operating procedures and enhancing consumer security.
Summary
House Bill 5984, titled the 'Used Motor Vehicle Warranty Act', is designed to enhance consumer protections for individuals purchasing or leasing used motor vehicles in Michigan. The bill mandates that used motor vehicle dealers offer a contract cancellation option agreement, which allows consumers to return a vehicle within two days of purchase without cause. This legislation aims to address the challenges consumers face after purchasing used cars, providing them with greater confidence during the buying process.
Contention
Notable points of contention surrounding HB5984 may include concerns from used motor vehicle dealers regarding the financial implications of implementing these cancellation options. Dealers might argue that the requirement adds complexities to transactions and could financially burden their operations. Additionally, there may be debates over which vehicles are exempt from this act, such as motorcycles or high-cost used vehicles, and whether private sales should be included under the same regulations, which the bill currently excludes.