Lumping License Fees and Registration/Transfer/Titling Fees
Explained by our California Lemon Lawyers
When selling a new vehicle, there must be an amount disclosed on Line 2A and 2B of the purchase contract. A dealership is required to correctly state and itemize the License Fees due on Line 2A and the Registration/Transfer/Titling Fees due on Line 2B of a vehicle purchase contract. Failing to itemize the amounts due on Lines 2A and 2B is a violation of the Automobile Sales Finance Act, Civil Code §2981 et seq. These disclosures are mandatory and violations create strict liability.
A vehicle purchaser is entitled to a refund for any overpayment of License Fees paid. By lumping together the License Fees and Registration/Transfer/Titling Fees all onto Line 2A of the RISC, the buyer does not know the true amount of the License Fees, and, therefore, doesn’t know if he/she is entitled to a refund of any overcharge.
When selling a used vehicle, there is always an amount due on Line 2B, but maybe not on 2A.