Understand the California Laws for Buying a Used Car
Just an invention yesterday, an absolute inevitability today! Since the simple steam engine automobiles in 1769 to the present day mean machines. Cars have been a thing of awe in past and a total necessity now.
California is the third largest U.S. state. A beautiful Mediterranean climate makes it optimal for road trips. A wide network of freeways, expressways and highways is another reason why Californians truly need a car.
As buying a new car is very expensive, going for a used one is a good option. But most of us are apprehensive of buying a car. We all have been deceived by car dealers for long.
You don't have to worry anymore as the California Car Buyer's Bill of Rights will help you. The bill which came into practice on July 1, 2006 has had a great impact on the purchase of new and used vehicles.
The Law provides you with the following privileges:
Two-Day Return Option On Used Cars
You have the option of returning the car in two days or as per the duration decided by the seller. So, now you don't have the "three-day cooling off period" which was previously offered by the dealers for canceling a contract.
The only condition for availing this right is that the value of the car should be $40,000 or less than that.
If you want to avail the Return Option, the dealer will ask for a Restocking Fee. When you return the car, the dealer will deduct the Return Option Charge and pay back the balance. The Return Option Charge and Restocking Fee are based on the price of the car. Some dealers may also offer you the Return Option for free.
But keep in mind that there are few rules for returning the car. They are as follows:
1) The car should be in the same condition as you purchased it from the dealer. Normal wear and tear is allowed but nothing more than that.
2) You shouldn't drive the vehicle for more than 250 miles. You can only exceed the limit with the permission of the dealer.
2) You must return the car and the original documents vis-à-vis before the due date although you can keep contract copies with you.
If you have bought the used car in a trade-in and the dealer sold your car, you will get the fair market value or the price listed in the agreement, whichever is greater. Keep in mind that you won't get the car back.
Under the new Law, dealers must provide you the following in writing:
>> The actual price of the car exclusive of extra options and add-ons.
>> The price for add-ons like anti-theft devices, safety devices, service contracts, extended dealer warranty, etc. should be given separately.
>> A copy of your credit history if you are getting a car loan from the dealer himself. The dealer will have to mention the credit reporting agency also.
There are several other laws which help you while buying a used car. One of them is the California State "Lemon Law". It gives you the right to refund or replace your new or used car if it has some serious fault.
We have the Bill of Rights, but what about the Responsibilities?
Everyone is responsible for their own fate. The State of California assures that you will be safe while buying a car. But you also need to be alert.
It is essential that you meticulously check the car. A used car may have major problems so it is crucial that you ask your mechanic to inspect it.
Verify that the car meets the California standards and is currently registered in the State.
When you buy a car, make sure that the seller provides you with a Smog Certificate.
Do not sign any documents until you have understood them. You can also get a copy of the contract in the same language in which you communicated with the dealer. This will make certain that you understand every term accurately.
You also have the task of finding affordable financing for a car. You can avail it from a dealer or a financial institution. You also have the choice of internet. When you go for an online search, make sure that you compare car loan rates and go for the best available option.
Alert today, happy driving tomorrow!
Rapid Car Loans provides car loans in California at reasonable rates. We specialize in providing loans for used cars. Visit www.rapidcarloans.net to know more about the wide range of loans that we offer.