California Car Buyers Could Pay Nearly 5 Times More Because of New Senate Bill – San Bernardino Sun

California Car Buyers Could Pay Nearly 5 Times More Because of New Senate Bill – San Bernardino Sun

California Car Dealers Get Green Light for Higher Fees

The recent approval of Senate Bill 791 in California has stirred a significant debate around auto purchases. With strong bipartisan backing, this legislation allows car dealers to charge buyers up to an additional $500 on every car sold. This move has attracted criticism for straying from earlier promises by lawmakers to make life more affordable for Californians.

What the Bill Entails

Under this new law, car dealers can raise the fees they charge to process paperwork from $85 to a maximum of $500, reflecting a steep hike. Specifically, dealers can now charge up to 1% of the vehicle’s purchase price, which, based on recent data, averages around $48,656 for new vehicles in the U.S., meaning customers could face substantial additional costs. Critics argue this increases the burden on consumers rather than alleviating it. Rosemary Shahan from Consumers for Auto Reliability and Safety voiced strong objections, emphasizing that this measure serves mainly to enrich car dealers.

Justifications from Dealers

Proponents of the bill, like Anthony Samson of the California New Car Dealers Association, stress the need for these fee increases to keep pace with rising operational costs related to paperwork and vehicle registration. According to them, other industries can adjust their fees to recover costs, while auto dealers have been stuck with outdated regulations.

Mixed Reactions from Lawmakers

While one senator, Henry Stern, voted against this initiative, calling it an unchecked increase in "junk fees," the overall response among lawmakers was largely supportive. Many Democratic senators also voted for the bill despite earlier commitments to reducing costs for the public.

Financial Implications for Consumers

As a result of this bill, many consumers may face unexpected costs when buying a vehicle. This has raised broader questions about transparency in auto sales, particularly as the public has become increasingly aware of hidden charges in various industries.

Conclusion: How We Can Help

If you’re considering getting rid of your old car, remember that junking it can alleviate some of your financial burdens. Companies like Cash for Cars Los Angeles provide quick and easy solutions for passengers tired of high costs and "junk fees" at dealerships. Reach out for a free quote at 213-441-3333 or click below where it says "ONLINE QUOTE". Take the first step to declutter your finances today!

Source: Sabalow, R. & Kuang, J. (2025). CalMatters.

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