2981.As used in this chapter,unless the context otherwise requires:
A Gray Market Vehicle is a vehicle that is normally sold in the United States with an express written warranty, but has been imported through a channel other than a manufacturer’s authorized distributor, and therefore does not have an express warranty that is valid in the United States.
Yo-Yo Sales, Spot Delivery Fraud and Conditional Delivery Scams are one of the most widespread abuses in the automotive industry. This sophisticated form of fraud applies to both leased and purchased vehicles that are being sold as either new or used and is very difficult for most consumers to recognize that they are being defrauded. Yo-Yo Sales, Spot Delivery Fraud and Conditional Delivery Scams always require the buyer signing a second loan or lease agreement.
If a dealership, either orally or in writing, negotiates the sale or lease of a vehicle to a consumer in the Spanish, Chinese, Korean, Tagalog or the Vietnamese language, then the dealership must give that consumer a translation of the Buyer's Guide and the vehicle's final contract in the language that the sale was primarily negotiated in prior to presenting the buyer with a final contract for the sale or lease to sign.
Submersion in water due to storms, swollen rivers or any sudden flooding can cause extensive damage to vehicles and must be disclosed to potential buyers prior to a sale.
If a vehicle was repurchased under the California Lemon Law for a defect by either the vehicle's manufacturer or dealer, then the Vehicle's Manufacturer is required to brand that Vehicle's Title as a "Lemon Law Buyback" and to affix a "Lemon Law Buyback" decal to the vehicle.
Rewritten contract and backdating fraud happens when a dealership has you sign a new retail installment sale contract or lease, but dates that “new” contract back to the date of the original deal. This isn’t just sloppy paperwork – it can create hidden finance charges, the wrong APR, and misleading disclosures about what you’re really paying for the vehicle under California law.
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