"Used Car Buyers' Bill of Rights"; prohibits certain "as is" sales of used motor vehicles.
The bill modifies existing consumer protection laws related to the sale of used vehicles, specifically amending P.L.1995, c.373. It eliminates the allowance for 'as is' sales, requiring dealers to provide at least limited warranty coverage depending on the vehicle's mileage. Under the revised law, consumers can expect a minimum 90-day warranty on vehicles with less than 40,000 miles, and warranties decrease in duration as mileage increases. By shifting the burden of warranty obligations onto dealers, the bill aims to ensure that consumers are more informed about the condition of the vehicles they purchase.
Assembly Bill A3808, also known as the "Used Car Buyers' Bill of Rights," aims to enhance consumer protections in the sale of used motor vehicles. The bill prohibits dealers from selling used vehicles 'as is' without a warranty and mandates that they offer a contract cancellation option agreement for vehicles priced below $40,000. This agreement allows consumers to return the vehicle without cause within a specified period, and it outlines the required conditions, including restocking fees and maximum mileage limits during the trial period. Important information such as deadlines for contract cancellation must be clearly stated in writing to consumers.
Debates surrounding the bill center on the balance between consumer protection and the operational challenges it poses for used car dealerships. Supporters argue that these measures protect consumers from potential fraud and ensure they have the opportunity to reverse impulsive purchases. Critics, however, suggest that it may increase costs for dealers who must adjust their sales practices and potentially pass those costs onto consumers. There are concerns that the new regulations could reduce the availability of affordable used cars in the market, particularly for lower-income families.