Governor Approves New Protection for Car Buyers
Today, Gov Jerry Brown signed into law new protection for California car buyers. The law will help protect consumers from unknowingly buying an unsafe, stolen or junk car.
The new law requires all car dealers post a red sticker any cars that were sold as "junk," salvage," or "flood" vehicles. The warning will tie into a federally mandated database -- the National Motor Vehicle Title Information System (NMVTIS). NMVTIS is maintained by the U.S. Department of Justice. It is the only car database as to which 100 percent of the nation's insurers, junk and salvage yards, and state motor vehicle departments are required to report updated title information every 30 days.
Rosemary Shahan, the sponsor of the bill said that "consumer advocates have long sought the protections offered in this bill. For the first time, auto dealers will be required to provide vital information about a vehicle's safety, reliability, and worth before consumers even start negotiating. In California, millions of the most hazardous cars will be marked with a red sticker to warn consumers that they merit close scrutiny or should be avoided."
Last year, over 800,000 used cars were sold through new car dealerships in California. The new law bill be effective January 1, 2012.
