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New CA Lemon Law Protection For Used Cars

New California Lemon Law for Used Car Buyers from Kurt Delsack on Vimeo.


New California Law Provides Additional Lemon Law Protection for Used Car Buyers

With more than 30 million vehicles registered in the State of California Gov. Jerry Brown signed a significant, new consumer protection bill into California law on Monday, September 28, 2011 aimed at providing better protection for California buyers of used cars.

The bill will become effective July, 2012, and is the first law of its kind in the nation. It will require California new and used car dealers to check the Vehicle Identification Number (VIN) against a federal government database of all used cars to be sold at retail.

The database is administered by the National Motor Vehicle Title Information System (NMVTIS), established in 2008 by Congress and operated by the Department of Justice. California used vehicles which are on the the federal database must be marked with a warning sticker and the selling dealer must provide a copy of the disclosure to the retail purchaser upon request.

Federal law requires all states, insurance companies, salvage yards, and junkyards to promptly provide information to update the database regarding vehicles sustaining serious damage in accidents, flood, or fire. The database is used by the state motor vehicle departments and police departments throughout the nation and is available to the public for small fee.

Unlike commercial systems which mainly get information from state motor vehicle and police departments, the National Motor Vehicle Title Information System is intended to be considerably more comprehensive. This new California bill is supported by the California New Car Dealers Association, used car dealer associations, and other consumer organizations. It is hoped that similar legislation will be adopted by other states.

Until other states do adopt similar laws, however, California consumers will have the advantage of significantly greater protection in purchasing used vehicles.








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