NC H1223

Allows purchasers to cancel motor vehicle sales before financing is final and requires dealers to return down payments and trade-in vehicles in the same condition within 24 hours of cancellation.

Requires dealers to disclose individual cash prices for all ancillary items (warranties, security systems, undercoating, etc.) and provide comparison of total payment schedules with and without ancillary items before executing a retail installment sales contract.

Prohibits dealers from receiving compensation based on interest rates or loan amounts in consumer credit installment sales contracts for motor vehicles, eliminating dealer "yield charges" or markup on financed vehicle sales.

Clarifies insurance coverage requirements, requiring dealer insurance to cover conditional delivery vehicles until financing is finalized and title is executed, then transferring to purchaser's insurance policy.

Effective date: October 1, 2009.