Auto dealers will be able to charge consumers at least $25 more for documentation fees if Gov. Jerry Brown signs a state bill already passed in both houses of the California Legislature, the Los Angeles Times reported on September 2, 2011. However, AB 1215 would also require car dealers to “run the vehicle identification number of any used auto for sale on their lots through the National Motor Vehicle Title Information System to check whether the auto has a so-called branded title.” Any vehicle identified as “salvage,” “junk,” “flood,” or a “buyback” under California lemon law, the dealership would have to affix a red window sticker warning potential buyers of the auto’s history.

Capitol Weekly noted that had the bill’s electronic registration requirement been in effect last year, it could have saved California nearly $10 million by cutting DMV car registrations in half. While AB 1215 would, for the first time in five years, “raise the statutory cap on what dealers can charge consumers for processing their vehicle transactions, completing title and registration work and complying with the new requirements of the bill,” Capitol Weekly also noted that the state would still have the second-lowest cap in the nation.

AB 1215 has the support of law enforcement agencies, consumer advocate groups and the California New Car Dealers Association. Despite the additional documentation fees, the bill would hopefully help reduce or eliminate numerous forms of auto dealership fraud involving used vehicle disclosure and “certified” vehicles.

If you believe that you already entered into a bad car contract and need a knowledgeable California lemon lawyer to help perform a car audit, contact our office today for a free consultation.

Rosner, Barry & Babbitt, LLP — California lemon law attorneys