(Sacramento) - Legislation that would have provided consumers with new rights and protections when buying a car has been vetoed by Governor Arnold Schwarzenegger.

AB 1839 – the "Car Buyer’s Bill of Rights – would have expanded existing consumer protections for the sale and financing of automobiles in California through three primary provisions: financing limitations, certification standards, and loan packing disclosures. In addition, the bill would have set standards for ‘certified’ used cars.

If signed, AB 1839 would have:

• Cracked down on predatory and discriminatory auto lending by capping the percentage car dealers can receive in kickbacks for ‘jacking up’ interest rates on auto loans.

• Set standards for ‘certified’ used cars, to prohibit rebuilt wrecks, salvage vehicles, odometer rollbacks, ‘lemon law buyback’ cars or cars sold ‘as is’, from being advertised or sold as ‘certified’.

• Required auto dealers to disclose to consumers who get car loans what their credit score really is.

• Prohibited the practice of ‘loan packing’, misrepresenting the portion of the monthly payment based on the purchase price of the car, and how much added items, such as ‘theft etching’, add to the monthly payment.

"There’s no question that consumers throughout California have a sour feeling right now, to know that this Governor – this administration - said it was okay for people to be marked up excessively on their interest rate, that it’s okay for somebody to be sold a used car that has frame damage that could potentially put their life at risk, that’s it’s okay for things to be packed into some of these loans without car buyers knowing actually knowing what’s in the loan or what they’re being sold," said Assemblymember Cindy Montañez (D-San Fernando), the bill’s author.

AB 1839 had originally had originally included language giving buyers of used cars a three-day grace period during which they could return the vehicle for a full refund, minus a fee and the cost of any damage. But the bill faced stiff opposition from the auto industry, which lobbied the Governor hard to veto the measure (and reportedly gave the Governor nearly $1-million in political contributions). So, in order to get the bill out of the Legislature, Montañez agreed to the Governor’s demands and dropped the three day grace period. The Governor vetoed the bill, anyway.

"It’s a lost opportunity," said Montañez. "However, this opportunity will exist for the Governor next year because we intend to move this measure forward through the Legislature again and put it on the Governor’s desk. So, he’ll have another opportunity (to sign the bill) and I do hope he sees the next opportunity as a chance to protect people, the common working person, who would much rather have the extra money to be able to take care of themselves, instead of giving the money away to these auto dealers.

"I knew I wasn’t going to stop pushing for the ‘Car Buyer’s Bill of Rights’ the day that I had somebody walk into my office and show me a 29 percent interest rate on their car loan, which is a very excessive mark-up," added Montañez. "We intend to fight to ensure that the bill gets enacted and that California leads the way in ensuring that auto dealers do not continue to participate in fraudulent and deceptive practices that are taking literally millions – and sometimes billions – of dollars away from consumers."