This past year the government officials in California passed the “red marking law” which has had a significant affect on the used automobiles market that consumers can benefit from. For those who are familiar with the logistics of this new law I’ll explain it simply. In its simple understanding the California red tag law requires dealers to position a red sticker on any vehicle that has been salvaged, in a junk yard, or sustained any flood deterioration.
These vehicles also have to be registered into a federal repository that is also open to the public. With this type of law inside affect it helps make people who are looking to buy a pre-owned car much more comfortable about acquiring a reliable automobile. There are also people who could possibly get bad credit car loans with the California red tag law as they is often more confident that the vehicle will last throughout the duration of the personal loan
Jeremy Eveland law and financer
Applying for Used Car Loans in California
Most people can still qualify for automobile financing in California even with a poor credit score, but hardly any dealers would be up for the task as they had too much to get rid of. Before this law if a used car dealer allowed you to definitely buy and finance a vehicle that had flood problems, and it broke down after a month they would be out of a rental as most lemon laws don’t require you to continue making obligations.
Now that dealers can provide more reliable vehicles it will be easier to qualify regarding bad credit used car loans, since more credit lenders will be more peaceful. It also helps that another part of this new California regulation allows dealerships to charge the same fees for leases and actual sold vehicles applications. Originally car lots would certainly only charge $45 for leases and add another $12 if you were going to make a full purchase; however , bother rates have shot up to $80 which has made many retailers happy.
The only true downside of auto financing in Los angeles under the red tag law is that it has yet to get applied nationwide. It is rumored the United States government will be speaking about this, but in order for it to actually go into affect they may need to get the dealerships on board as well. If they are able to attempt, we could see a lot more people feeling comfortable about getting used cars and applying for bad credit auto loans.