HB 2378 Summary

• Requires sellers of restored salvage vehicles to clearly and conspicuously disclose in writing to buyers before sale completion that the vehicle has a restored salvage title.

• Prohibits motor vehicle dealers from advertising a sales price that includes rebate or discount deductions unless those rebates or discounts are available without restriction to every consumer; rebates requiring consumer qualifications must be advertised separately with clear disclosure of eligibility requirements.

• Requires motor vehicle dealers and lessors to retain title and possession of trade-in vehicles until financing is finally approved, preventing loss of trade-ins if financing falls through.

• Clarifies that violations of motor vehicle dealer requirements constitute unlawful practices under state consumer protection law, allowing attorney general investigation and enforcement.

• Increases minimum bond requirements for automotive recyclers from $20,000 to cover nonpayment of trade-in vehicles and expands bond coverage to include dealer failure to comply with agreements to pay off outstanding trade-in vehicle loans.