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MARBLEHEAD, Mass. — As potential buy-here, pay-here
dealership regulation is deliberated by California lawmakers, the leadership of
FinCo Management reiterated how products and services are readily available and
geared toward helping stores no matter how many new rules are adopted in the
Golden State.

"Although designed to bring needed improvement to what is
currently a minimally regulated industry, BHPH dealer regulation legislation approved
by the California Senate and Assembly committees has prompted overall feelings
of concern rather than applause by car dealers in the BHPH industry," FinCo
Management president Toby Reiley pointed out.

"California dealers, who may rightfully feel inconvenienced
by the legislation, need not worry about substantial business loss," Reiley
emphasized. "Products and services available for BHPH dealers already exist
which not only address each element of the proposed California law, but also
provide solutions for BHPH dealers which maintain or even increase unit sales
and profitability. Companies offering these services such as FinCo Management
provide immediate compliance, and an opportunity to increase efficiency and
profitability with outsourced, centralized BHPH operations. 

"The characterization by California lawmakers of BHPH as an
industry unfairly taking advantage of the deep subprime customer neglects to
highlight the reality of the BHPH industry as a necessity for what is the riskiest
market," Reiley went on to say. "BHPH dealers provide access to transportation
to the customer who may not have reasonable public transit options and would
otherwise be unable to get financed. Companies like FinCo Management recognize
this need and offer finance programs designed to benefit both the dealer and
the consumer."

As California lawmakers near finalization of their state
budget, they're turning their attention back to bills that could significantly
regulate the state's BHPH dealers.

With legislators ready to consider measures from the
opposite legislative chamber, Senate Bill 956 is scheduled to be discussed by
the Assembly's Banking and Finance Committee today.

Specifically, Senate Bill 956 has three main goals:

—Impose first-ever regulations on dealers offering buy-here,
pay-here installment loans by requiring them to obtain a California Finance
Lender's license.

—Limit used-vehicle installment loans to an interest rate of
no more than 17.25 percent, which would give California the strongest cap in
the nation.

—Change the way BHPH dealers are able to repossess vehicles
to include grace periods and make it easier for buyers to reinstate a
repossessed unit.

Meanwhile, there are more measures percolating in California's
capital that could change how BHPH conduct business.

Some of the regulations AB 1447 would create include:

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

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

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

-Require BHPH dealers to provide notice to the buyer of the
presence of ignition shutdown technology in the vehicle and that such
technology be set to provide advance warnings to the driver to help avoid
stranding drivers.

Furthermore, AB 1534 is in the works, too

This bill would require a BHPH dealer to display a label on
any used vehicle offered for retail sale that states the "reasonable market
value" of the unit. The bill would require the label to contain specified
information used to determine the vehicle's reasonable market value and the
date the value was determined.

Moreover, AB 1534 would require a BHPH dealer to provide to
a prospective buyer of the used vehicle a copy of any information obtained from
a nationally recognized pricing guide the dealer utilized to determine the
reasonable market value of the vehicle.

Reiley highlighted that FinCo Management offers a suite of
products to help BHPH dealers handle tasks associated with doing business or to
meet components of additional regulation such as payments, issues with vehicle
reliability and warranties, tracking and ignition shutdown technology devices
as well as repossessions.

More details about the company's products can be found at www.fincomanagement.com.