To: The Georgia State House, The Georgia State Senate, and Governor Brian Kemp
Outlaw "Yo Yo" auto sales by car dealers
O.C.G.A. § 10-1-32.1 Motor vehicle sales and leases - deceptive trade practices
(1) A person engages in a deceptive trade practice under the Georgia Fair Business Practices
Act (O.C.G.A. §10-1-390 et seq) when, in the course of such person's business, vocation, or
occupation, such person:
(a) Commits any of the following acts pertaining to the sale or lease of a motor vehicle
or a used motor vehicle:
(i) Guarantees to a purchaser or lessee of a motor vehicle or used motor vehicle
who conditions such purchase or lease on the approval of a consumer credit transaction as
defined in section 10-1-30, that such purchaser or lessee has been approved for a consumer credit
transaction if such approval is not final. For purposes of this subparagraph (i), "guarantee" means
a written document or oral representation between the purchaser or lessee and the person selling
or leasing the vehicle that leads such purchaser or lessee to a reasonable good faith belief that the
financing of such vehicle is certain.
(ii) Accepts a used motor vehicle as a trade-in on the purchase or lease of a
motor vehicle or used motor vehicle and sells or leases such used motor vehicle before the
purchaser or lessee has been approved for a consumer credit transaction as defined in section 10-
1-30, if such approval is a condition of the purchase or lease;
(iii) Fails to return to the purchaser or lessee any collateral or down payment
tendered by such purchaser or lessee conditioned upon a guarantee by a motor vehicle dealer or
used motor vehicle dealer that a consumer credit transaction as defined in section 10-1-30, has
been approved for such purchaser or lessee, if such approval was a condition of the sale or lease
and if such financing is not approved and the purchaser or lessee is required to return the vehicle;
(b) Fails to disclose in writing, prior to sale, to the purchaser that a motor vehicle is a
“salvage motor vehicle” or “rebuilt motor vehicle” as defined in section OCGA 40-3-2 (10) and
(11), that a vehicle was repurchased by or returned to the manufacturer from a previous owner for
inability to conform the motor vehicle to the manufacturer's warranty in accordance with OCGA
10-1-780 et seq., or with any other state or federal motor vehicle warranty law, or knowingly fails
to disclose, in writing, prior to sale, to the purchaser that a motor vehicle has sustained material
damage at any one time from any one incident.
(2) For purposes of this section, if a motor vehicle or used motor vehicle dealer guarantees
financing and if approval for financing is a condition of the sale or lease, such motor vehicle or
used motor vehicle dealer shall not retain any portion of such purchaser's down payment or any
trade-in vehicle as payment of rent on any vehicle released by such dealer to such consumer.
(1) A person engages in a deceptive trade practice under the Georgia Fair Business Practices
Act (O.C.G.A. §10-1-390 et seq) when, in the course of such person's business, vocation, or
occupation, such person:
(a) Commits any of the following acts pertaining to the sale or lease of a motor vehicle
or a used motor vehicle:
(i) Guarantees to a purchaser or lessee of a motor vehicle or used motor vehicle
who conditions such purchase or lease on the approval of a consumer credit transaction as
defined in section 10-1-30, that such purchaser or lessee has been approved for a consumer credit
transaction if such approval is not final. For purposes of this subparagraph (i), "guarantee" means
a written document or oral representation between the purchaser or lessee and the person selling
or leasing the vehicle that leads such purchaser or lessee to a reasonable good faith belief that the
financing of such vehicle is certain.
(ii) Accepts a used motor vehicle as a trade-in on the purchase or lease of a
motor vehicle or used motor vehicle and sells or leases such used motor vehicle before the
purchaser or lessee has been approved for a consumer credit transaction as defined in section 10-
1-30, if such approval is a condition of the purchase or lease;
(iii) Fails to return to the purchaser or lessee any collateral or down payment
tendered by such purchaser or lessee conditioned upon a guarantee by a motor vehicle dealer or
used motor vehicle dealer that a consumer credit transaction as defined in section 10-1-30, has
been approved for such purchaser or lessee, if such approval was a condition of the sale or lease
and if such financing is not approved and the purchaser or lessee is required to return the vehicle;
(b) Fails to disclose in writing, prior to sale, to the purchaser that a motor vehicle is a
“salvage motor vehicle” or “rebuilt motor vehicle” as defined in section OCGA 40-3-2 (10) and
(11), that a vehicle was repurchased by or returned to the manufacturer from a previous owner for
inability to conform the motor vehicle to the manufacturer's warranty in accordance with OCGA
10-1-780 et seq., or with any other state or federal motor vehicle warranty law, or knowingly fails
to disclose, in writing, prior to sale, to the purchaser that a motor vehicle has sustained material
damage at any one time from any one incident.
(2) For purposes of this section, if a motor vehicle or used motor vehicle dealer guarantees
financing and if approval for financing is a condition of the sale or lease, such motor vehicle or
used motor vehicle dealer shall not retain any portion of such purchaser's down payment or any
trade-in vehicle as payment of rent on any vehicle released by such dealer to such consumer.
Why is this important?
Car Dealers often sell cars to unsuspecting consumers telling them that they have been approved for financing and the deal is final, when in reality to deal is not final and financing is not approved. These same dealers then sell the trade in and refuse to refund down payments. This conduct should not be allowed.