SACRAMENTO, Calif. (AP) — California would restrict the operations of "buy here, pay here" auto dealers under a bill approved by the state Senate.
AB1447 would prohibit dealers from forcing buyers to pay installments in person and require them to provide buyers with warranties covering the vehicle for at least 30 days or 1,000 miles.
The bill also would prohibit dealers from installing tracking devices without the buyer's consent.
Those targeted by the legislation deal primarily in used vehicles and offer their own financing. Sen. Ted Lieu says they charge high interest rates and churn vehicles by constantly repossessing and reselling them.
Democratic Sen. Rod Wright says dealers take the precautions because their buyers have a history of defaulting.
The Senate passed the bill Thursday 22-14, returning it to the Assembly for final action.