Sec. 1. 10 MRSA c. 204-A, as amended, is amended by repealing the chapter headnote and enacting the following in its place:

CHAPTER 204-A

DEALER PRACTICES FOR CERTAIN MOTOR VEHICLES

Sec. 2. 10 MRSA §1194 is enacted to read:

§1194.__Dealer sale practices for new or used motor vehicles

When selling new or used motor vehicles a dealer must adhere to the following sale practices.

1.__Disclosure of dealer's share of financing charges.__A dealer who sells or leases new or used motor vehicles and who, in order to facilitate a sale to a buyer, arranges financing with a lender shall disclose to the buyer prior to completing any financing agreement the total amount of any finance charge that will be paid to the dealer by the lender in return for arranging financing.

2.__Dealer revocation of sale.__If a dealer sells a new or used motor vehicle and allows the buyer to take possession of it, the dealer can not at a later date inform the buyer of that vehicle that the dealer is canceling the sale unless the dealer also offers to reimburse the buyer the following amounts:

A.__The entire vehicle purchase price or, if a leased vehicle, the lease payments made to date, including any paid finance charges on the purchases or leased vehicle;

B.__All collateral charges, including, but not limited to, sales tax, license and registration fees and similar government charges; and

C.__The full amount paid for any vehicle traded-in by the buyer in conjunction with the sale.

This subsection does not apply to any sale canceled by the dealer due to a material misrepresentation made by the buyer.

SUMMARY

This bill provides consumers protection against 2 motor vehicle dealer practices. This bill requires dealers to disclose any mark-up in the financing interest rate the dealer receives