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10-18-2009, 10:32 PM | #1 |
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New law in California will require liens to be paid before trade-ins are resold
A new law which will go into effect on January 1, 2010 requires California dealers to payoff liens before reselling or auctioning a vehicle they took in on trade.
The law also stipulates that 21 days is the maximum time allowed to process a lien pay-off. Here's a link to the news report - click here I wonder what effect this law will have on California dealers? It seems like it would be frustrating for a Sales Manager to have a great trade vehicle sitting in the back-lot for a week while the office processes the lien payoff. |
10-19-2009, 10:37 AM | #2 |
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I'd like to see how CA defines "selling the vehicle" and whether or not it is symbolized by the signature and date on the contract or some other criteria.
If there is no definition of what "selling" the trade in means, I'd just put the customer in a borrowed vehicle agreement or similar agreement until the trade is paid off and I can get the customer back into the store to process final paperwork. |
10-19-2009, 01:54 PM | #3 | |
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It will be interesting to learn how strict this law really is. While I agree there's a need to crack-down on dealers who don't pay-off trade liens and use that money to capitalize their business, this seems like an over-reaction. |
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10-19-2009, 03:04 PM | #4 |
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I would think "selling" also includes a wholesale Dealer wanting to pick up his deal.
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10-20-2009, 10:26 AM | #5 | |
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Maybe one of our California dealers can provide some insight into how this law will affect their operations? |
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