Posts Tagged ‘Salvage Title’

Bill to Raise Doc Fees on New and Used Cars Goes Into Effect Today

A new State of California bill is now in effect that raises vehicle documentation fees charged by dealers on every new and used car purchase or lease. For new and used vehicle purchases, that mandatory fee now goes up to $80 (from $55), while leased vehicles will also bring $80 in documentation fees, up from $45.

While no one likes an increase in fees, California Bill AB 1215 (full text here) also includes a couple of key new consumer protections. First, dealers are now required to submit new or used vehicle registrations electronically at the time of purchase. This means you’ll be protected from fraud, and get your license plates and tags sooner.

More importantly, the bill introduces a new system for easy consumer identification of cars carrying salvage or other types of “branded titles,” given to cars that have been heavily damaged by collision or natural disaster, junked or returned under lemon laws. All used car dealers are now required to check each vehicle in the National Motor Vehicle Title Information System.

Any car offered for sale in California state with a salvage or branded title will now display a red window sticker (above), warning consumers of its title status. Seeing wide support from law enforcement agencies and consumer groups, the new bill goes a long way toward consumer peace of mind, despite the fee increase.

California Forces Dealerships to Display Red Window Stickers on Cars with Salvage Title

A new California law will require all the state’s car dealerships to display a red window sticker on any vehicle carrying a salvage title, Automotive News reports. Salvage titles are given to total-loss cars junked as a result of a collision, returned under lemon laws or hit by disasters like flood and fire.

The bill also includes a provision requiring electronic registration by the dealer at the time of purchase for all cars sold or leased. Vehicle documentation fees will increase from $55 for purchases and $45 for leases to $80 for both types of transaction.

Consumer Benefits

You, the California car buyer, will see a couple of key benefits from the new law. Dealers are required by current law to inform potential buyers of cars with salvage titles, but many don’t. Now there will be no confusion thanks to the new red stickers.

Also, electronic registration at the time of purchase means you’ll get your new plates in weeks instead of months. The small fee increase passed on to consumers still leaves California’s documentation fees among the lowest in the nation.