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California is known for protecting consumers from dishonest or defective sales, especially in its detailed lemon law. Those shopping for a used car in California will feel even more assured by the announcement of a new addition to the law as it applies to used cars: dealers will now be required to check the vehicle identification number, or VIN, of the used cars they are selling against a database that lists any issues or accidents the car has had in the past.
This law will go into effect in July 2012, and will require dealers to complete the VIN check against the National Motor Vehicle Title Information System database before listing a car for sale. While the addition to the lemon law is designed to protect those purchasing a used car from encountering hidden problems in the future, even new cars will need to be run through the database before being sold. The National Motor Vehicle Title Information System database, a database compiled by the federal government, is more detailed than other vehicle history reports because it includes a compilation of information from a variety of sources, including insurance companies, salvage yards, and junkyards.
How will Californians know if they’re purchasing a car that has been shown to have a negative history? Any problems must be clearly marked on a red sticker on the vehicle, making it easy for buyers to know if they’re purchasing a car with issues. Both new and used-car dealer associations in California have spoken in favor of the new lemon law, noting that the law will help them boost sales by giving their customers peace of mind when purchasing a vehicle.
The law does come with a small price to consumers: car dealers are now allowed to charge up to $80 in document fees for a car purchase, where the previous maximum had been $55 for new car sales and $45 for used car sales. It is possible for buyers to negotiate the $80 fee down; the figure is simply a maximum.
The consumer protection law is the first of its kind in the country, and California hopes that other states follow suit to protect used car buyers.
