Summary of the New Sales Tax Law for Car Dealerships: Since January 1, 2021 some California used car dealers, must pay the “sales and use tax” on retail sale of used vehicles directly to the Department of Motor Vehicles. The Bills apply to used vehicle dealers falling within the following criteria. This is valid since January 1,...Read More

Addressing Safety Concerns: GMC Sierra HD Recall for Inadequate Diesel Fuel Pump Flow The Recall Issue and Affected Vehicles GM has initiated a product safety recall for select units of the 2017 to 2019 GMC Sierra HD pickup trucks equipped with the 6.6L V8 L5P turbodiesel Duramax engine and featuring the dual fuel tank feature...Read More

A California seller’s permit is required for any business that sells tangible goods in the state of California, including vehicles sold retail. All businesses must have a valid seller’s permit in order to legally sell taxable items or services and collect sales tax from customers. The permit allows businesses to purchase goods without paying sales...Read More

The number of consumer lawyers suing car dealers for selling vehicles with prior damage or accident is still on the rise. In California, Kasra Sadr, Esq. of The Car Law Firm has been suing California auto dealers for years. Sadr seems to target dealers who sell cars that have been involved in prior accidents or sustained prior...Read More

Regulation Z is a federal regulation that applies to consumer credit transactions, including car loans. It is administered by the Consumer Financial Protection Bureau (CFPB) and is designed to protect consumers from unfair or deceptive credit practices. In the context of car dealerships, Regulation Z requires that dealers disclose certain information to consumers, such as the annual...Read More

Vehicle history reports, such as those from CARFAX or AutoCheck, have become an integral part of any used car purchase. These reports can provide valuable information about a given vehicle’s prior history. Currently, California law does not specifically say that a dealer must provide its customers with a CARFAX or AutoCheck Vehicle History Report. However,...Read More

The DMV Release of Liability is a form submitted to the Department of Motor Vehicles (DMV) by a vehicle owner that releases them from any future civil liability for things like traffic violations or accidents that may occur after the sale or transfer. The form must include the vehicle’s make and model, license plate number, vehicle identification number (VIN),...Read More

California vehicle dealerships need to get their financial house in order prior to entering the DMV’s licensing process. Per California law, a dealer bond serves as a protection for customers, protecting them from possible negligence or fraud claims against the dealership. Currently, car dealerships are required to carry a $50,000 bond before they can finalize...Read More

One of the largest consumer law firms in the state specializing in suing car dealerships under the Consumer Legal Remedies Act for selling vehicles with undisclosed “frame damage” was just hit with a judgment of $1.2 million after a trial in Los Angeles. Judge Jon R. Takasugi awarded the Plaintiff, Hawthorne Auto Market, Inc., $200,000...Read More

A breach of contract in a vehicle purchase agreement can occur when one or both parties fail to fulfill their obligations under the terms of an agreement. This can include issues such as non-payment, failure to deliver goods or services, and misrepresentation of facts. A claim for a breach of contract of a vehicle purchase...Read More