In an arbitration case, Auto Legal Group successfully defended a Sacramento dealership against claims that the dealership made a false statement that a new hybrid battery had been installed on the vehicle just before sale and sold it with a defective hybrid battery. The dispute started after the Sacramento dealership sold a 2012 Prius, which...Read More

Tariffs are expected to be implemented shortly on imported vehicles. This is causing a significant effect on vehicle sales and prices. Here is some information that has been shared with DealerXT. As of last weekend (March 29-30, 2025), sales of vehicles at new car dealerships have skyrocketed because customers expect a 20-25% increase in price...Read More

In the state of California, vehicle license fees (VLF) are a type of annual tax that is assessed on the ownership of a vehicle. The fee is based on the vehicle’s current market value and is typically paid when the vehicle is registered or when the registration is renewed. The VLF is collected by the California...Read More

The vehicle license fee is the annual fee on the ownership of a registered vehicle in CA in place of a personal property tax. Vehicle licensing fees and registration laws are ever-changing in California. In hopes of giving you an update on where fees currently stand and in order to protect yourselves, we are summarizing parts...Read More

It is important for used car dealers to comply with the provisions of the California Vehicle Code §5753, Chapter 2 because it sets forth some of the legal requirements for transferring ownership of a vehicle in the state of California. This includes requirements for transferring the title of the vehicle in a timely manner, providing...Read More

How DealerXT’s Arbitration Addendum Helps Dealerships Reduce Legal Costs and Risk When it comes to managing legal risk, one overlooked but critical detail in a dealership’s retail installment sales contract and paperwork is the Arbitration Agreement. Many dealers assume that these contracts and agreements are standard. They are not!! Strategic Faults and Higher Costs in Arbitration...Read More

The arbitrator in this case highlighted that the outcome “ultimately turns on the credibility of the witnesses”. When disputes rely solely on one party’s word against another, dealers are exposed to uncertainty, extended litigation, and unnecessary costs. Credibility competitions are unpredictable and rarely end quickly. Even if a dealer prevails, the process is time-consuming and...Read More

In an arbitration ruling on January 13, 2025, Auto Legal Group (ALG) secured a complete victory for Nick Motors and ABC Credit, a key client in a dispute involving a plaintiff’s claims of failure to provide Spanish translations of documents as well as failure to disclose prior damage in Spanish. The plaintiff’s claims were not only denied, but the Arbitrator also...Read More

GEICO announces closure of California operations due to economic challenges The announcement One of the biggest insurers in the U.S., GEICO, has announced the closure of all its California locations. The company cites economic challenges as the reason behind the decision. The move will result in over 100 employees losing their jobs. The affected employees...Read More

Safeguarding Consumer Trust and Compliance in Trade-In Transactions In the automotive industry, trade-in transactions are a common practice, allowing customers to exchange their existing vehicles for a new purchase. However, failure to disclose pertinent information and properly identify trade-in vehicles can lead to legal repercussions and damage the reputation of dealerships. In this article, we...Read More