HOUSE OF REPRESENTATIVES

H.C.R. NO.

109

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 
   


HOUSE CONCURRENT

RESOLUTION

 

urging the motor vehicle retail industry of hawaii to initiate measures to make its sales practices transparent.

 

 

WHEREAS, purchasing an automobile is a complicated and often stressful ordeal that requires hours and hours to negotiate; and

WHEREAS, it is at the end of a long and arduous process that the sales contracts are finalized and the additional costs and fees attached to the vehicle sale are discussed; and

WHEREAS, it is not unusual for the purchaser of the automobile to be exhausted and not clearly cognizant to all the differences between mandatory and optional fees; and

WHEREAS, in the last five years, the Department of Commerce and Consumer Affairs (DCCA) has investigated numerous complaints against the motor vehicle retail industry; and

WHEREAS, DCCA has found that Hawaii's consumers have been victimized through various methods, including "bait and switch" practices, overcharging for registration and transfer fees, misrepresentation of sale options, service contracts, insurance related services, and other illusory and deceptive practices; and

WHEREAS, the purchasing of an automobile may be one of the most important and expensive decisions that an individual may make in life; and

WHEREAS, it is essential for purchasers of motor vehicles to be protected from any intentional unscrupulous and deceptive practices; and

WHEREAS, to reaffirm its commitment to the consumers of Hawaii, the motor vehicle retail industry should take the necessary steps to clarify sales dealings and eliminate unscrupulous and deceptive practices; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2002, the Senate concurring, that the motor vehicle retail industry of Hawaii is urged to initiate measures to make transparent their sales practices through actions that include:

    1. Giving notice of all mandatory and optional fees by clearly visible notices in any area where sales are conducted;
    2. Disclosing in detail any fees and guarantees with respect to auto vehicle theft registration and warranty agreements;
    3. Providing in plain language, details of insurance-related services prior to the consummation of the sale transaction; and
    4. Providing to potential buyers, prior to any negotiation, copies of "credit rating sheet" showing both accepted and rejected applications; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of the Department of Commerce and Consumer Affairs, the Chairperson of the Motor Vehicle Industry Licensing Registration Board; and the President of the Hawaii Automotive Dealers' Association.

 

 

OFFERED BY:

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Report Title:

PROMOTING "SUNSHINE" INTO MOTOR VEHICLE SALES TRANSACTIONS