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SACRAMENTO, Calif. — Buy-here, pay-here dealers in
California began 2013 with more state regulations. But reflecting back on what
the potential rules might have been, the National Independent Automobile
Dealers Association explained how they could have been much more cumbersome.

To recap, one new law forces Golden State BHPH dealers to comply
with several mandates, including:

—Require BHPH dealers to provide a written warranty that
covers most major components and lasts for at least 30 days or 1,000 miles,
whichever happens first.

—Prohibit BHPH dealers from requiring a buyer to make
regular payments in person.

—Require BHPH dealers to receive written consent from the
buyer prior to selling a vehicle equipped with electronic tracking technology.

—Require BHPH dealers to provide notice to the buyer of the
presence of "starter interrupt" technology in the vehicle, ensuring that
advance warnings are provided to the driver – prior to the vehicle being
disabled – in order to help avoid stranding a driver in dangerous
circumstances.

Another measure signed into law by Gov. Jerry Brown requires
a BHPH dealer to display a label on any used vehicle offered for retail sale
that states the "reasonable market value" of the unit from outlets such as
Kelley Blue Book or NADA Used Car Guide. The law also calls that the label contain
specified information used to determine the vehicle's reasonable market value
and the date the value was determined.

However, what the governor vetoed left the California BHPH
dealer community relieved. A bill specifically targeted the financing of BHPH
transactions, including a cap of interest rates at 17 percent as well as a
grace period for repossessing the unit.

"Many of us worked
hard lobbying against this bill and fighting for its veto," NIADA chief
operating officer Steve Jordan said. "We are proud of the efforts put forth by
our dealers, our state association leaders in California and NIADA's Coalition
to ‘Protect Our Freedom to Drive.' This would not have happened without the
combined efforts of the industry's stakeholders working together nationally and
in California, marshaling our resources and making our collective voice heard
on behalf of our dealers and their customers."