Who Regulates Car Dealerships in California?

Our California lemon law attorney knows that car dealership salespeople are often associated with deceit as if they are hiding the true identity of the vehicle they are trying to sell, or are simply trying to drive up the price to pad their commission.

Consumers are programmed to believe that getting a deal on a vehicle purchase or lease is paramount to the actual act of driving the new car away. So, why does it feel like everyone who purchases or leases a vehicle from a dealership is somehow getting ripped off? And when that is true, how are consumers being protected from unscrupulous business operations?

Our California Lemon Law attorneys can explain your legal rights and options as a consumer if you are involved in a dispute with a dealership or manufacturer, so you can pursue the best outcome for your unique case.

What Regulations Protect Vehicle Consumers in California?

The reality is, both state and federal regulations require a specific amount of information to be listed on the sticker of the vehicle — that should always be visible to the consumer — including the suggested retail price, miles per gallon, crash safety ratings, optional equipment, and warranty information.

This is the first step in ensuring the consumer’s rights are protected and that they can make informed decisions about their vehicle purchase. If a dealer removes the sticker before the car is sold, they can be punished with fines or even prison time.

Other state entities that regulate car dealerships include:

  • California Department of Motor Vehicles

The California Department of Motor Vehicles has strict protocols for registering a car dealership, and requires the business owner to pass a criminal background check, take dealership and sales courses before passing a test, obtain a surety bond of $50,000, and fully comply with all requirements for the use of the car dealership, such as signage, display lot requirements, and front office rules before submitting to an inspection performed by an officer from the DMV.

The California DMV also requires that all auto salespeople be licensed and pass a background check.

  • New Motor Vehicle Board in California

Technically, the New Motor Vehicle Board in California is a part of the California Department of Motor Vehicles that has two major departments: One that attempts to resolve disputes between car manufacturers and dealerships, and one that attempts to resolve disputes between California consumers and dealerships or manufacturers.

  • California Department of Consumer Affairs

The California Department of Consumer Affairs regulates car dealerships through an Arbitration Certification Program that outlines the California Lemon Law, which covers new and used vehicles sold or leased in the state that comes with the manufacturer’s vehicle warranty.

It states an under-warrant vehicle is defective when a mechanic cannot fix the issue after a qualifying number of reasonable vehicle repair attempts and qualifies for a refund, repair, or replacement option to be negotiated with the manufacturer.

Contact Our Lemon Law Attorney in California Today to Pursue Real Results for Your Case

If your vehicle is under its manufacturer’s warranty and you have questions about how to confirm it is defective, and thereby covered by our California Lemon Law, contact our experienced Los Angeles County Lemon Law attorney at Shainfeld Law, P.C., today by calling 310-295-1888 to request a free consultation online.

We will walk you through the Lemon Law eligibility requirements and handle each detail of your case, including billing the manufacturer for our legal fees, so you are not responsible for any out-of-pocket costs. Call us now to learn more.

We handle lemon law cases all across California:

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