Section § 9990

Explanation

This law explains when damage to a motor vehicle is considered significant or 'material'. Damage is considered material if the cost of repair exceeds 3% of the car's retail price or $500, whichever is higher. Some exceptions apply, like the cost of replacing new original manufacturer parts, unless those repairs make up over 10% of the vehicle's value.

Additionally, damage is material if it affects the car's frame or drive train, occurs during vehicle theft, or involves the suspension requiring more than just wheel alignment or balancing.

For purposes of this chapter, damage sustained by a motor vehicle is material under any of the following circumstances:
(a)CA Vehicle Code § 9990(a) The damage required repairs having a value, including parts and labor calculated at the repairer’s cost, exceeding 3 percent of the manufacturer’s suggested retail price of the vehicle or five hundred dollars ($500), whichever is greater. The replacement of damaged or stolen components, excluding the cost of repainting or refinishing those components, if replaced by the installation of new original manufacturer’s equipment, parts, or accessories that are bolted or otherwise attached as a unit to the vehicle, including, but not limited to, the hood, bumpers, fenders, mechanical parts, instrument panels, moldings, glass, tires, wheels, and electronic instruments, shall be excluded from the damage calculation, except that any damage having a cumulative repair or replacement value which exceeds 10 percent of the manufacturer’s suggested retail price of the vehicle shall be deemed material.
(b)CA Vehicle Code § 9990(b) The damage was to the frame or drive train of the motor vehicle.
(c)CA Vehicle Code § 9990(c) The damage occurred in connection with a theft of the entire vehicle.
(d)CA Vehicle Code § 9990(d) The damage was to the suspension of the vehicle requiring repairs other than wheel balancing or alignment.

Section § 9991

Explanation

This law requires car dealers to let buyers know in writing about any major damage that a new or previously unregistered vehicle has had and been fixed before the sale contract or before handing over the car, if they didn't know earlier.

Every dealer shall disclose in writing to the purchaser of a new or previously unregistered motor vehicle, prior to entering into a contract for the vehicle or, if unknown at that time, prior to delivery of the vehicle, any material damage known by the dealer to have been sustained by the vehicle and subsequently repaired.

Section § 9992

Explanation

If you're buying a new or previously unregistered vehicle, the dealer must tell you in writing about any damage the vehicle has, like dents or anything more serious, before you make the purchase or receive the car. This rule applies if the dealer knows about the damage and it hasn't been fixed.

Every dealer shall disclose in writing to the purchaser of a new or previously unregistered motor vehicle, prior to entering into a contract for the vehicle or, if unknown at that time, prior to delivery of the vehicle, any damage, including, but not limited to, material damage, known by the dealer to have been sustained by the vehicle and not repaired.

Section § 9993

Explanation

This law states that car dealers cannot give false or misleading answers to potential buyers' questions.

Nothing in this chapter permits any dealer to respond to the inquiry of a purchaser in any untrue or misleading manner.