Calif. BHPH Bills Clear Hurdles
SACRAMENTO — The three legislative proposals aimed at setting new restrictions for California’s buy-here, pay-here dealers passed out of their respected houses of origin this week, with the Assembly passing two of the bills on Tuesday and the Senate passing the third bill two days later.
Assembly bills 1447 and 1534 were referred to the Senate Rules Committee after passing the Assembly by a majority vote. The third bill, SB 956, was approved by the Senate by a 23-12 vote on Thursday and was heard by the Assembly the same day.
“The rules committee looks at each measure and determines where they’ll need to be heard and we refer them to the appropriate policy committees,” said Jane Brown, committee assistant to the Senate Rules Committee.
All three bills, which faced a June 1 deadline to make it out of the respective houses of origin, must pass the policy committee level by July 6 and both houses by Aug. 31. Governor Jerry Brown will then have until Sept. 30 to pass or veto the bills.
If passed, AB 1447, introduced by Assemblyman Mike Feuer (D-Torrance), will require that BHPH dealers provide a limited warranty for all major components on vehicles sold. It will also implement new disclosures when ignition shutdown technology is present in a vehicle.
Assemblyman Bob Wieckowski (D-Fremont)’s legislation, AB 1534, mandates that dealers display a window sticker with the reasonable market value on all vehicles for sale, among other requirements.
Senate Bill 956, proposed by Senator Ted Lieu (D-Torrance), would lower the cap on interest rates from 30 to 17.25 percent, which would become the lowest cap in the nation if the measure is passed.
Buy-here, pay-here dealers caught the attention of state lawmakers last November after the Los Angeles Times published a series of articles critical of the segment. The three lawmakers introduced their bills in January, about four months before the Consumer Financial Protection Bureau announced its interest in learning more about the BHPH industry.
More Industry

Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →