"Used Car Buyers' Bill of Rights"; prohibits certain "as is" sales of used motor vehicles.
Impact
The proposed legislation modifies existing laws regarding the sale of used vehicles by mandating the presence of warranty conditions. Specifically, it amends the Consumer Fraud Act to classify selling a vehicle as 'certified'—when it is not—under fraudulent practices, thus providing a framework for consumers to seek recourse if misrepresented. The bill also establishes provisions for a contract cancellation option, where buyers can return vehicles under certain conditions, further strengthening consumer rights.
Summary
Senate Bill S2087, known as the 'Used Car Buyers' Bill of Rights,' aims to enhance consumer protection for individuals purchasing used cars in New Jersey. The bill prohibits the sale of used vehicles 'as is' to consumers, meaning that dealers must offer some form of warranty or guarantee. This measure is designed to prevent dealers from evading liability through 'as is' clauses, which frequently leave consumers unprotected against defects and issues related to their purchase.
Contention
While supporters of the bill praise it as a necessary step toward consumer protection in the used car market, detractors worry that it might constrain dealers in how they market vehicles, particularly those with salvage titles or severe prior damage. There is concern regarding the potential for increased vehicle prices passed on to consumers due to added dealer liability and costs associated with compliance.
Additional_info
The legislation does not extend to transactions between private parties or apply to certain vehicle types, including motorcycles and motor homes. The parameters detailed in the bill regarding the cancellation agreements and the limitations on 'as is' sales seek to create a more transparent marketplace while also ensuring that consumers have recourse if they purchase a defective vehicle.