| New car dealers sit out fight on Buy Here Pay Here bills With legislation to impose new regulations on Buy Here Pay Here dealers marching through the statehouse, California's used car industry is redoubling efforts to block their passage. Supporters of the legislation include the Center for Responsible Lending, Consumers for Auto Reliability and Safety, and the Torrance Chamber of Commerce. Larry Grooms, a Lancaster consultant who is working for the opposition coalition, said the group had already garnered powerful support, including from the National Independent Auto Dealers Assn. The legislation was introduced early this year to regulate the large Buy Here Pay Here industry that operated mostly out of the spotlight. Critics say that the dealers charge interest rates that can top 30%, mark up the cost of cars far beyond their value and sell vehicles in poor condition. Assemblyman Tim Donnelly (R-San Bernardino), who isn't a member of the coaltion but opposes the bills, posted a comment on Facebook after voting against the Feuer bill last month. "The state should have nothing to do with it. The Coalition to Protect Our Freedom to Drive argues that the bills, which last month passed floor votes in their originating houses, would cost the state hundreds of millions of dollars in lost sales tax revenue and keep working families from gaining access to vehicles. Among other provisions, the bills would cap interest rates on loans issued by the dealers at 17% plus the federal funds rate, presently at 0. The bills may come up for final floor votes in time to be sent to Gov. topic> in late August. The California New Car Dealers Assn. Sen. "They have provided no evidence that charging a 17. "We've agreed that as long as we're excluded from the bills, we will stand down from the fight," said Welch, whose association counts 1,200 new car dealers - responsible for a huge chunk of the state's sales tax receipts - as members. When they talk, legislators listen. All three bills sailed through committee and floor votes in their respective houses this spring. The actions were bankrolled by a group of Buy Here Pay Here dealerships and industry groups and received endorsements from several local chambers of commerce and politicians, including a member of the State Board of Equalization. "I think there would be more sales because cars will be less expensive. To date, 12 dealers have joined the coalition, as has the National Alliance of Buy Here Pay Here Dealers, the Antelope Valley Chambers of Commerce and the Palmdale Chamber of Commerce. The coalition recently launched a website, opened Twitter and Facebook accounts and on Thursday began sending out press releases. |
Sunday, 10 June 2012
New car dealers sit out fight on Buy Here Pay Here bills
