SB95 - California

RDKG said

the problem is that the auctions are not held resposible for anything,titles,etc.they have the bond money,and there own insurance company,guarenteeing there money.called AIA INSURANCE.THE AUCTIONS SELL THE CARS WITH NO TITLE!DEALER BUYS IT THEN RETAILS IT!U TAKE IT FROM THERE WHAT HAPPENS"THE BK ATTY ABOVE LEAVE # I WOULD LOVE TO TALH TO U.

anonymous said

I support the bill because, as a bankruptcy atty, I see too many people who are being forced to file simply because car dealers have gone out of business without paying for cars they traded. My clients had no way of knowing the car dealers were struggling & do not even have the cars they are now forced to pay in addition to the new loan created when they bought another car. Many were downsizing from cars they could no longer afford anyway, yet ended up owing more than beforehand. If they would have sold their cars on the street rather than trading them to a licensed dealer, they would not be in this situation. But, that's exactly what California is trying to prevent from happening by restoring consumer's faith in the industry with further protection like this bill. If there is any other solution, I'd love to hear it. I am not in CA, but my state is struggling to put similar rules in place & I'd like to offer other options to the legislature. I don't think that the bond increase is a lot of help, but it is a little. We had a USED car dealer close with over $6mil in bond claims, so no amount of increase is going to protect everyone. We are considering a proposal that would cause higher criminal penalties (such as felony theft by deception or outright fraud) to help deter such huge claims.

anonymous said

The current bond form includes coverage for auto auctions and finance company's. These firms loan
money to auto dealers to purchase vehicles. Many of these loans are made to dealers that do not
qualify for such financing. The loans are made by these firms knowing that they can recover their
loss by submitting a claim against the surety bond. Both of these firms should be excluded from the
bond form. Their risk of doing business should be covered. The only parties to be covered should
be the Department of Motor Vehicles and the consumer. The bond limit should remain at the
current limit of $50,000.00 for the independent dealer. The limit should be increased to at least
$500,000.00 for the new car dealer. Most of the big hits are the result of new car dealers closing
their business.

john oconnor said

i am a very small used car dealer. having had a dealer license since 1973. this bill will effectively put me out of business. i can barely afford the $900 for the bond i have now. it isn't just me that will be affected. the shops i buy my parts and tires from and the body shop and mechanic that do my work will all be affected. with the high rate of unemployment people are not spending like the were a year or so ago which impacts the tax revenues. the high number of foreclosures effect the property tax revenue. everywhere we look it seems that the legislators are doing what they can to shift the financial burden to the few people who still have jobs and own businesses. we alone cannot take up the slack. i think it's time to cut government spending instead of making us poor souls shoulder the burden. let these legislators have some pay cuts and unpaid days off like the rest of us.