Class Material


Return To Index


Section 9

Truth in Lending

9.1 Requirements

  1. Civil Code §2982 and Federal Regulation Z require the following disclosures, as applicable:
    1. "Itemization of amount financed" (must be labeled this way)
      1. Cash price (of the vehicle only)
      2. Document Preparation Fees: $65.00 maximum for hard copy documents, and $80.00 if the documents are submitted electronically. [V.C. §11713.1(b)]
      3. Smog Fee: $50.00 maximum for the smog test. The smog state certificate fee is an additional $8.25. [V.C. §11713.1(b) and C.C. §2982(a)(4)]
      4. High polluter donation (if applicable in the geographical area)
      5. Sales tax
      6. Service contract charges
      7. Total cash price of (i) through (vii) above.
    2. License fees
    3. Registration fees
    4. Title (transfer) fees
    5. Insurance premiums
    6. Subtotal of the foregoing items
    7. Down payment amount
      1. Agreed value of trade-in
      2. Deferred down-payment (due before scheduled 2nd payment)
      3. Manufacturer's rebate applied to down payment
      4. Any other down payment amounts
      5. Prepaid finance charge
    8. Total amount financed (F - G = "Amount Financed")
    9. Finance charge
    10. Annual Percentage Rate (APR)
    11. Payment schedule
    12. Total of payments
    13. Total sale price
    14. other disclosures, such as security interests, pre- and late payment penalties, required deposits, etc., as applicable

Previous Section     Next Section