California Legislation advances to regulate Buy Here Pay Here used-car dealers

Los Angeles Times reports today that legislation aimed at regulating Buy Here Pay Here used-car dealers, which charge soaring interest rates and have high rates of repossessions, was approved today by the California Senate Banking Committee. The bill, sponsored by Sen. Ted Lieu (D-Torrance), would classify the dealerships, which finance car purchases themselves, as state-regulated lenders.

The legislation was strongly opposed by Buy Here Pay Here dealers, who make up a niche part of the used-car market, as well as the Independent Automobile Dealers Association of California, which represents the used-car industry.