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§3.04 Vehicle Sales—Governing Law

Lesson 3:
Vehicle Repairs, Sales, & Leases

The Rees-Levering Motor Vehicle Sales and Finance Act [CC §§2981 et seq, also known as the Automobile Sales Finance Act (ASFA)] protects purchasers and lessees of motor vehicles against excessive charges by requiring full disclosure of all items of cost in a conditional sale contract. [Stasher v Harger-Haldeman (1962) 58 C2d 23, 29; Hernandez v Atlantic Fin. Co. (1980) 105 CA3d 65, 69.] The Act is also referred to as the Automobile Sales Finance Act, or ASFA. The Act applies to:

  • Sales and certain leases of motor vehicles purchased from dealers for personal or family purposes, except mobile homes. [CC §2981(a), (k).] Car sales by individuals who are not dealers are not covered by the Act.

  • The retail installment sale of an off-highway motor vehicle that is required to be registered or identified under the Vehicle Code. [71 Ops Cal Atty Gen 167 (1988).]
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