FI showroom red and grey logo
MenuMENU
SearchSEARCH

Calif. BHPH Bill Heads to Governor’s Desk; Two Others Inch Closer

Three bills aimed at buy-here, pay-here dealers move closer to becoming law. Assembly Bill 1447 gains approval from both houses and awaits the Gov. Jerry Brown’s signature, while AB 1534 and SB 956 head back to their respective houses for concurrence votes.

by Staff
August 30, 2012
3 min to read


SACRAMENTO, Calif. — Three bills aimed at regulating buy-here, pay-here dealers are moving closer to the finish line, with one of two Assembly bills headed to Gov. Jerry Brown’s office. The other two bills, including a second Assembly bill and a Senate bill, are headed back to their house of origin for one final vote.

Assembly Bill 1447, introduced by Assemblyman Mike Feuer (D-Torrance), awaits the Governor’s signature after gaining approval from both houses. As described in a press release, the legislation aims to protect buyers from harassment and invasions of privacy. It must be signed into law or vetoed by Gov. Brown by Sept. 30.

Ad Loading...

“Without the protections included in AB 1447, mostly low-income buy-here, pay-here customers can’t be sure they are buying dependable vehicles,” Feuer said in a press release. “This bill requires a minimum warranty to help ensure buyers are paying for reliable transportation and other critical safeguards for consumers. I urge the governor to sign this critical measure.”

Feuer’s bill prohibits BHPH dealers from requiring customers to make car payments in person. It also mandates that BHPH operations offer a minimum warranty of at least 30 days or 1,000 miles. The bill also requires that BHPH dealers disclose to car buyers when ignition shutdown technology is present in a vehicle. They must also receive written consent from buyers prior to purchase when an electronic tracking device is installed in the vehicle.

AB 1534, authored by Assembly member Bob Wieckowski (D-Fremont), passed through the state Senate by a 23-10 vote. It will be reviewed again by the Assembly on Friday for a concurrence vote. The measure mandates that dealers place a window sticker on each used car showing the vehicles’ suggested market value. If the Assembly approves amendments added by the Senate, AB 1534 will head to Brown’s desk.

The lone Senate Bill, SB 956, was approved by the Assembly by a 52-26 vote. Championed by Senator Ted Lieu (D-Torrance), the bill awaits a final vote from the Senate, which must approve amendments made by the Assembly. If passed, California BHPH dealerships would operate under one of the lowest interest rate caps in the nation — set at a maximum of 17.25 percent.

Each of the bills were introduced in January after a series of articles critical of BHPH dealers was published in the Los Angeles Times late last year.

Ad Loading...

Tom Hudson, of Hudson Cook LLP, claims that Lieu’s legislation will drive a number of BHPH dealers out of business, noting that BHPH dealers were already regulated under the same state laws and regulations that govern all car dealers — citing Automobile Sales Finance Act, California’s Uniform Commercial Code the state’s unfair and deceptive acts and practices law, the federal Truth in Lending Act and Regulation Z.

“California doesn’t need more laws; it needs to enforce the ones it has,” he wrote in an e-mail.

More F&I

F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
F&IFebruary 13, 2026

Business Office Blueprint

Try following these 20 steps to greater success in the dealer F&I office this year.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 11, 2026

Insurance Shopping on the Rise

A TransUnion study found that relationship-driven sales models proved to be important, as consumers who used an agent had a lower shopping intensity than those going it alone.

Read More →
Industryby Hannah MitchellFebruary 4, 2026

Auto Insurance Cost Reprieve

2025 brought consumers relief after years of rate hikes, but 2026 could bring renewed policy pain, depending on how U.S. trade policy affects prices.

Read More →
Reese Dailey from Automotive Training Academy by Assurant
F&IFebruary 4, 2026

Cash Deal Strategies

In this video, Reese Dailey of the Automotive Training Academy by Assurant reveals strategies to make cash deals profitable without relying on monthly payment bumps.

Read More →
Ad Loading...
Cox Automotive and Dealertrack logos displayed over a dealership showroom background.
F&Iby StaffFebruary 3, 2026

Cox Auto Says Dealertrack Offers Greater Finance Efficiency

Suite of new APIs, product enhancements and integrations is designed to help maximize contracting and funding efficiency for lenders and their dealer partners.

Read More →
F&Iby Hannah MitchellJanuary 12, 2026

Auto Credit Access Loosens

December brought some of the best borrowing availability for consumers in years, though lenders tightened their reins on riskier segments of the market.

Read More →
F&IJanuary 7, 2026

Resistance to the Menu

In this video, Reese Dailey of the Automotive Training Academy by Assurant explains how to handle a customer who isn’t willing to listen to your pitch.

Read More →
Ad Loading...
two-vehicle rear-end collision
F&Iby Lauren LawrenceJanuary 7, 2026

EV Collision Claims Spike

Third-quarter battery electric vehicle insurance claims were up 4% year-over-year. A new report says EV claims cost the most due to complex technology and limited after-market parts supply.

Read More →