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Deferred Down Payment

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Court of Appeal (Cal.) Says Post-Dated Checks Given at Time of Sale and Informal Agreement to Deposit Them Upon Date of Check Are Not “Deferred Down-Payments” Under Rees-Levering and Do Not Violate the “Single Document Rule”

by Scott J. Hyman |

In Nichols v. Century West, LLC, 2016 WL 4368157, at *7–8 (Cal.App. 2 Dist., 2016), the Court of Appeal held that post-dated checks were not "deferred down-payments" under ASFA and did not violate the single document rule. None of these cases offers guidance on whether post-dated checks provided to a dealership at the time of a sale should be categorized as… Read More

Appellate Division (Cal.) Addresses Dealer/Holder’s Right to Cure under Rees-Levering Act (Civ. Code 2984)

by Scott J. Hyman |

In Munoz v. Express Auto Sales,--- Cal.Rptr.3d ----, 2014 WL 131195 (Cal.Super.A.D. 2014), , the Los Angeles County Appellate Division set forth how an automobile dealer can cure Rees-Levering violations under Civil Code 2984. Pursuant to a second amended complaint filed November 1, 2012, plaintiffs alleged that defendant violated the ASFA by failing to properly itemize the sources of the… Read More

Court of Appeal (Cal. — Unpublished) Applies 1-year Statute of Limitations to Rees-Levering Violation Arising out of Deferred Down-payments

by Scott J. Hyman |

In Harrelson v. CarMax Auto Superstores California, LLC, 2013 WL 5348087 (Cal.App. 4 Dist. 2013), Harrelson filed a class action against CarMax, pleading the first class to be any person who in the four years preceding the filing of the complaint purchased a car from CarMax, signed a retail installment contract (RIC), and made a deferred down payment and whose… Read More

Court of Appeal (Cal.) Requires Strict Rees-Levering Complaince by Auto Dealer who Incorrectly Listed “Deferred Downpayment” on Standard Form Auto RISC

by Scott J. Hyman |

In Rojas v. Platinum Auto Group, Inc. --- Cal.Rptr.3d ----, 2013 WL 156561 (Cal.App. 2 Dist. 2013), the California Court of Appeal required strict compliance under Rees-Levering, finding that a dealer’s error of improperly listing a $2,000 ‘down-payment’ on the downpayment line (line 6G) of the standard auto RISC as opposed to the ‘deferred downpayment’ line (line 6D) rendered the… Read More