Senate Bill 95, introduced January 27, 2009, by Senator Ellen Corbett (D-San Leandro) woudl increase the bond amount dealers have to pay and require dealers to pay off liens on trade-in vehicles BEFORE reselling them.
This bill was initiated to combat the problem with dealers going out of business before they pay off remaning loan balances on trade-in vehicles. A problem which will continue to grow during this recession.
The Bill will require dealers to pay off liens prior to transferring vehicles to a new owner or before the next payment is due, whichever comes first. The dealer bond will would increase from $50,000 to $250,000 for franchised new-car dealers and $100,000 for independent car dealers.
Contact Senator Ellen Corbett to support this SB 95.
