Auto Dealers Disappointed After Newsom Kills Bill Allowing Higher Sales Fees

Governor Gavin Newsom has vetoed a proposed bill that sought to increase fees for car purchases in California. Monday’s announcement revealed that Senate Bill 791, which intended to raise fees for processing paperwork from $85 to as much as 1% of the vehicle's price (up to a ceiling of $260), will not be enacted. Newsom criticized the fee hike, advocating that it was unreasonable since the transaction would involve minimal data entry by the dealership. He emphasized the financial challenges Californians currently face, stating that the proposed increase exceeded what inflation would warrant. Brian Maas, president of the California New Car Dealers Association, expressed disappointment over the veto, noting that the existing $85 cap is the nation’s lowest. Maas highlighted that dealers frequently absorb increased operational costs, a concern compounded by new legislation mandating additional dealer responsibilities. Meanwhile, Senate Bill 766 endorses a return policy for used car purchases under $50,000, aiming to protect consumers.