Chapter 6Sale of Used Vehicles

Section § 11950

Explanation

This California law requires "buy-here-pay-here" car dealers to display a label on used vehicles for sale showing the vehicle's reasonable market value. The label should be clearly printed and placed near the vehicle's window sticker or in a prominent spot. It must include the market value, how it was calculated using a recognized pricing guide, and the date of valuation. This information is for comparison shopping and isn't the vehicle's selling price. Dealers must also give potential buyers a copy of the pricing guide info used. "Reasonable market value" is defined as the average retail value based on the car's specifics and determined recently by a recognized guide like Kelley Blue Book or Edmunds.

(a)CA Vehicle Code § 11950(a) A buy-here-pay-here dealer shall affix a label on any used vehicle being offered for retail sale that states the reasonable market value of that vehicle. The label shall meet all of the following conditions:
(1)CA Vehicle Code § 11950(a)(1) Be in writing.
(2)CA Vehicle Code § 11950(a)(2) Be printed with a heading that reads “REASONABLE MARKET VALUE OF THIS VEHICLE” in at least 16-point bold type and text in at least 12-point type.
(3)CA Vehicle Code § 11950(a)(3) Be located adjacent to the window sticker identifying the equipment provided with the vehicle or, if none, it shall be located prominently and conspicuously on the vehicle so that it is readily readable.
(4)CA Vehicle Code § 11950(a)(4) Contain the information used to determine the reasonable market value of the vehicle, including, but not limited to, the use of a nationally recognized pricing guide for used vehicles.
(5)CA Vehicle Code § 11950(a)(5) Contain the date the reasonable market value was determined.
(6)CA Vehicle Code § 11950(a)(6) Indicate that the reasonable market value is being provided only for comparison shopping and is not the retail sale price or the advertised price of the vehicle.
(b)CA Vehicle Code § 11950(b) A buy-here-pay-here dealer shall provide to a prospective buyer of the used vehicle a copy of any information obtained from a nationally recognized pricing guide that the buy-here-pay-here dealer used to determine the reasonable market value of the vehicle.
(c)CA Vehicle Code § 11950(c) As used in this section:
(1)CA Vehicle Code § 11950(c)(1) “Reasonable market value” means the average retail value of a used vehicle based on the condition, mileage, year, make, and model of the vehicle, as determined within the last 60 days by a nationally recognized pricing guide that provides used vehicle retail values or pricing reports to vehicle dealers or the public.
(2)CA Vehicle Code § 11950(c)(2) “Nationally recognized pricing guide” includes, but is not limited to, the Kelley Blue Book (KBB), Edmunds, the Black Book, or the National Automobile Dealers’ Association (NADA) Guide.
buy-here-pay-here used vehicle reasonable market value comparison shopping window sticker pricing guide Kelley Blue Book Edmunds Black Book NADA Guide vehicle valuation retail value car dealership used car label pricing report
(Added by Stats. 2012, Ch. 741, Sec. 1. (AB 1534) Effective January 1, 2013.)