The law, effective Jan. 1, requires five hours a year of continuing education for used-motor vehicle dealers and eight hours of training for prospective dealers. The law is largely an educational tool that doesn't stiffen consumer protections. Under the old rules, dealers essentially filled out forms with the Department of Motor Vehicles, paid fees and were given a handbook on state regulations. Training was offered but optional. The new training covers the legal responsibilities of dealers and consumer issues such as lending practices, service and warranty contracts, and advertising.
Prospective dealers get instruction on filling out forms, common legal pitfalls and other issues.
The programs must be approved by the state but are taught by groups like the dealers association. The idea, King says, is for the industry to regulate itself. King hopes the program will improve the industry's image and rein in unscrupulous dealers. Enforcement efforts are largely divided between the Department of Justice, which handles fraud and misrepresentation issues, and the DMV, which handles ownership and title issues. Department of Justice spokeswoman Jan Margosian says the department endorsed the law as a step in the right direction.