Consumer Law

Car Dealer Fee Bill Dies in the California Legislature

By Kemnitzer, Anderson, Barron, Ogilvie & Brewer

California law allows cars dealers to add a so-called document fee of $55 to each auto purchase contract. There is no good reason the law should allow dealers to add this fee because document preparation is just part of the cost of doing business. Not satisfied with the $55 fee, this year, the car dealers sponsored a bill in the California Legislature to raise the fees to $65, which we estimate would cost California car buyers an additional $40 million per year.

The Assembly passed the bill, but this week the author of the bill withdrew the bill in the face of opposition from key senators, including Senator Ellen Corbett, who chairs the Senate Judiciary Committee. Opposition to the bill was led by Rosemary Shahan, who is head of the consumer advocacy group, Cars for Auto Reliability & Safety. Consumers have Rosemary to thank for saving them $40 million!

Full post as published by Lemon Law Blog on June 18, 2008 (boomark / email).