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agreed value of the property being traded that the trial court properly rescinded the state, but will likely be the point at which
in; (4) the amount of any portion of the RISC and awarded the buyer damages. See the buyer becomes bound to proceed with
downpayment to be deferred until not later Chavez v. Golden Auto Group, Inc., 2023 the transaction). Federal disclosures, then,
than the due date of the second regularly Cal. App. Unpub. LEXIS 4471 (Cal. App. must be provided before the buyer signs on
scheduled installment under the contract; August 1, 2023). the dotted line. Does your state also have
(5) the amount of any manufacturer’s timing and/or presentation requirements?
rebate; (6) the remaining amount paid or to COMPLIANCE TIP If so, do you know what they are, and are
be paid by the buyer as a downpayment; and they and the federal requirement baked
(7) the total downpayment. The appellate Our case of the month illustrates the into your deal closing process?
court found that the three installments importance of describing the terms of the
the buyer agreed to make after the vehicle transaction properly in your contract. This So, there’s this month’s roundup! Stay legal,
purchase but before the first scheduled includes any deferred down payments that and we’ll see you next month. n
payment were deferred downpayments your customer has agreed to make after
that had to be itemized in the RISC under the vehicle purchase but before the first Eric (ejohnson@hudco.com) is a Partner
Section 2982(a)(6). Because the buyer regularly scheduled payment. You should in the law firm of Hudson Cook, LLP,
and the dealership agreed that he would ensure that your contract is properly Editor in Chief of CounselorLibrary.com’s
pay half of his $2,000 downpayment in disclosing all of the specific items that Spot Delivery®, a monthly legal newsletter
installments after the date of the purchase, you’re required to disclose under federal for auto dealers, and a contributing
but the RISC stated that the buyer put and state law. Also, timing can be really author to the F&I Legal Desk Book. For
down a single $2,000 downpayment with important. For example, federal Truth in information, visit www.counselorlibrary.
no further installments, the appellate Lending disclosures must be provided to com. ©CounselorLibrary.com 2023, all rights
court agreed with the trial court that the the consumer “prior to consummation” reserved. Single publication rights only to the
dealership violated ASFA and concluded (a term the meaning of which can vary by Association. HC# 4877-0275-4173.

MSIADA MISSISSIPPI DEALER Q3 2023 | 13