Last year, representatives of the government of California passed the "red label law" which had a significant effect on the market for used cars that consumers can benefit. for those familiar with the logistics of this new law, I'll explain it simply. in its basic understanding of the law of California red tag requires dealers to place a red sticker on any vehicle that was recovered in a junk yard or suffered flood damage.
These vehicles must also be enrolled in federal database which is also open to the public. with this type of law in affect helps make people looking to buy a used car much more comfortable about acquiring a reliable automobile. It there are also people who can get bad credit car loans to the law of the red label of California because they will be more confident that the vehicle will last for the duration of the loan.
used car loan request in California
most people can still qualify for auto financing in California, even with bad credit, but very few dealers would be up to the task because they had too much to lose. Before this law, if a used car dealer allowed someone to buy and finance a vehicle that had flood damage, and it broke down after a month, they would be out of a investment that most lemon laws do not require you to continue to make payments.
now that dealers can provide more reliable vehicles, it will be easier to qualify for bad credit used car loans for over credit lenders will be more relaxed. It also helps that another part of this new California law allows dealers to pay the same fees for leases and real applications of vehicles sold. Originally many cars would only pay $ 45 for leases and add another $ 10 if you were going to make a full purchase; However, the sentence prices rose to $ 80 which made many dealers happy.
The only real drawback auto finance in California under the law of the red tag is that it has yet to be applied nationally. It is said that the US government will discuss it, but it actually goes into effect they will need to get concessions on board as well. If they are able to accomplish this, we could see a lot more people feel comfortable about buying used cars and apply for bad credit auto loans.
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