California dealerships must flag salvaged cars with warning sticker

A new law has been signed by California Governor Jerry Brown that will require all dealers in the state to begin marking salvaged vehicles with a red warning sticker as of July 2012.

An additional requirement for the dealers under the law will be for dealers to electronically register all vehicles sold and giving them the capability to assess the fees to the consumer, with approximately half of dealers currently participating in the registration system voluntarily.

The change is supported by consumer advocates and the California New Car Dealers Association. President of the dealer’s association Peter Welch comments “No other state can match the built-in protections and convenience awaiting Californians. Like every small business, dealers want to focus on customers instead of paperwork.”

While charges for the documents will go up to a maximum of $45 for leases, $55 for sales, and $80 for both, they still remain second to lowest in the country, and the wait time for license plates will be cut from 6 months down to one.

California’s new law also works in favor of the consumer, since salvaged, flooded or junked vehicles will be easily identifiable.

– By: Alexandra Koken

Source: Automotive News