Ted Lieu Introduces Bill To Regulate Buy Here Pay Here Dealerships

LOS ANGELES (KNX 1070) — State Senator Ted Lieu of Torrance has introduced a bill in Sacramento aimed at regulating the so-called Buy Here Pay Here auto dealerships.

“Well we know they’re definitely gouging consumers and going after the poor. But we don’t know how big the problem is because they don’t have to get licensed,” said Lieu.

The measure, which would give buyers protections, is expected to be considered by a Senate committee in about a month.

If approved, the bill would — among other things — cap the interest rates the dealers charge which often top 30 percent.

The dealers say interest rates are high because of the high risk of their customers. But Lieu says the dealers boost interest rates to make the payments difficult.

“And then they hope the consumers default on the car so they can repossess it, take it back and then resell it to another consumer. And they’ve done this sometimes nine, eight times for a single car in a very short period of time,” he said.

Meantime, the new consumer federal protection bureau says it too is looking into the practices of the Buy Here Pay Here auto dealerships.

More from Ed Mertz
Comments

One Comment

  1. Michael J. McDermott says:

    Surrrrrrrrrrrre.

  2. James says:

    Unbelievable, that anyone would buy from those shyster outfits.

  3. Art Flywheel says:

    As with ANY car dealership, do your research, know your payments and make sure you can afford them! Is it the Buy Here Pay Here car lots problem if the customer decides to spend their money on a one night casino visit? Sure, interest rates are high, payments are high… why? Because BHPH car lots take DIRECT losses and deal with High Risk credit challenged individuals. It’s much different when major manufacturers help cushion losses, but when you are an independent dealer those losses hurt and hurt everyone that works for you.

    1. GR0WAPA!R says:

      “DIRECT losses???” You have no idea of what this story is about, dumbsh!t.

      1. Art Flywheel says:

        Another example of interference by entities that are probably funded by special interest groups. If you don’t think legislation like this would help Car Manufacturers and their dealers then I feel sorry for you.

        Thank you for keeping the conversation classyo_O

      2. GR0WAPA!R says:

        And, that reply explained “DIRECT losses” how? D!CKHEAD.

      3. Art Flywheel says:

        High interest rates that are due to high risk customers. Direct losses that directly impact the bottom line. Not losses that can be cushioned by manufacturer dollars.

        Please don’t cheapen this discussion with blatant insults. Respect the writer of this by actually showing that you can carry a somewhat intelligent conversation instead throwing words out. It makes you sound ignorant. Ignorance doesn’t look good on anyone.

  4. GR0WAPA!R says:

    All losses impact a bottom line, you have yet to define the application of “DIRECT losses,” in this matter, dumbsh!t. Obviously, you’re too f**king stupid to understand the question to carry on a, “somewhat intelligent conversation instead of throwing words out.”

    1. Art Flywheel says:

      Do you feel better now?

      1. GR0WAPA!R says:

        That was the expected reply from the ignorant dumbf**k.

      2. Art Flywheel says:

        lol.

      3. GR0WAPA!R says:

        “lol”? Well that explains things, ignorant dumbf**k, the little girls must have a blast kicking your puS$y ass around the playground.

      4. Art Flywheel says:

        ^ keep it going, this is quite hilarious.

      5. GR0WAPA!R says:

        Confirmation that you’re an “ignorant dumbf**k, that no one has defended. Try putting your tiny brain cell in gear, enough said, pu$Sy.

      6. Art Flywheel says:

        lol!!!

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