Assembly Bill 68
The Car Buyer’s Bill of Rights Effective July 01, 2006
The new law includes a provision which mandates the dealer to offer a contract cancellation option for the buyer of a used motor vehicle.
The maximum purchase price for the contract cancellation option is based on the cash price of the vehicle.
A dealer may offer the contract cancellation option at no charge to the buyer. If the dealer does charge for the option, the allowable fees:
- $75 cash price of $5,000 or less.
- $150 cash price of $5,000 but less than $10,000.
- $250 cash price of $10,000 but less than $30,000.
- 1% of purchase price cash price of $30,000 but not more than $40,000.
– For Contract Cancellation Option Agreement Disclosure Form go to: https://www.gotplates.com/pdfs/ab68disclosureformApril2006.pdf
