New Frontiers in Automotive Sale and Finance Products

摘要

Before a dealer sells and finances (or an assignee purchases a contract that includes) any of the vehicle sales/finance products discussed in this Article, the following legal issues should be addressed: (ⅰ) possible classification of whether the product is insurance; (ⅱ) potential federal and state sales transaction and credit disclosure requirements; (ⅲ) potential upcharge restrictions; and (ⅳ) potential dealer fraud. Most vehicle sales/finance products are not insurance products. GAP products and other products that provide indemnification benefits above the cost of the service component, however, may be considered insurance. Each vehicle sales/finance product must be carefully reviewed to compare the benefits offered against state law requirements to determine whether that specific jurisdiction will consider a particular product to be insurance or not. The insurance or noninsur-ance classification will determine the proper finance contract disclosure requirements under federal and state law.