Good day, friends. Today we come to you with some interesting, if upsetting news. But before you prepare yourself for doom and gloom, remember that here at eTags we strive to find the silver lining and share it with you. So take heart…today’s topic is no exception to that practice.
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Okay, out with the upsetting development:
The California Senate just passed a bill called SB-791 which states that car dealers would be allowed to increase their paperwork fees from an amount capped at $85 to a whopping $500. Yes, this means dealerships would be in their legal right to ask for $500 (depending on the cost of the car itself) just to complete the corresponding paperwork.
And in case we have percentage and numbers folks reading this, we’re looking at a jump of about 600%. Six hundred percent! 
So why have the dealers lobbied for this? Well, they claim that the fee is meant to cover documentation processing and costs. They cite circumstances such as inflation and new state regulations that have made it more expensive for dealers to facilitate transactions on behalf of their consumers.
Whether or not the reasons for the increase are valid or true, the bill has been passed, and it stands to be seen what will come of it on the buyers’ end. Will dealers actually hike up their fees by this incredible proportion…especially in a climate of rising automobile costs and in the wake of the new tariffs?
Well, no one can be sure of the actual outcome. But in order to ease the minds of anyone in the market for a vehicle in the state of California – particularly people hunting for a quality used car – we thought we’d share a few consumer rights you ought to know about before heading to a dealership. 
Your Rights in California When Buying a Used Car
- If you purchase a “certified” used vehicle, the dealer must ensure that it meets the following requirements and provide proof that these issues do not apply to the car:
- Odometer does not reflect actual mileage
- Car was reacquired by the manufacturer due to the Lemon Law
- Vehicle was involved in a collision, flood, or fire
- It is being sold “as is” due to frame damage
Upon purchasing a “certified” vehicle, remember that the dealer must provide you with a copy of the inspection report! If a used car is not labeled as “certified,” you have the right to ask why, to understand what is standing in the way of this label.
- When buying a used vehicle for under $40,000 you have the right to change your mind. Meaning, your dealer must offer you a two-day grace period in which you are allowed to cancel the contract agreement. This only applies to price tags under $40k, and you have to agree to pay for the contract cancelation option upon purchasing the vehicle. You can expect to pay the following for contract cancelations:
- $75 for cars under $5,000
- $150 for cars up to $10,000
- $250 for cars up to $30,000
- 1% for cars between $30k and $39,999
Of course, if you change your mind, remember that the dealer may charge a restocking fee anywhere from $150 to $500. 
Knowing your rights as a consumer is important, and if you find yourself faced with a dealer that is somewhat less than honest, you can file a complaint with the California DMV here.
For now, it’s our hope that this new bill is not wholly accepted by dealers across California, that businesses will take into account the already rising costs of buying a car and realize that a little grace goes a long way. We’ll be keeping an eye on the situation, of course, and will keep our lovely readers posted with any developments.
In the meantime, for all your tag and title needs in the Golden State, we’ve got your back. From registration renewals and replacements to title transfers and duplicates, come on over and let us lend a hand. Because as always, at eTags, we’re here to help!
