NC H973

Requires dealers to provide written notice to purchasers when executing conditional sales contracts for vehicles, with the notice printed in Times New Roman 16-point font on a separate page that must be initialed by the purchaser before contract execution.

Notice must inform purchasers that the sale is conditional on obtaining financing, that the dealer carries insurance until financing approval and title execution, that purchasers have no obligation to buy if financing is unavailable, and that purchasers are entitled to return of all consideration including trade-in vehicles regardless of time elapsed or mileage if financing is not obtained.

Specifies that the dealer's liability, collision, and comprehensive insurance covers the vehicle until financing is finally approved and the manufacturer's certificate of origin or certificate of title is executed.

Requires the dealer to notify the purchaser's insurance agency or insurer on the day of financing approval or the next business day if the insurer is closed.

Effective October 1, 2012, and applies to all conditional sales occurring on or after that date.