A San Jose judge has ordered a network of car dealerships owned and operated as subsidiaries of AutoNation, Inc., one of the country’s largest automobile sellers, to pay $650,000 to resolve a consumer protection action related to the sale of used vehicles.
The payments were ordered as part of a settlement stemming from a lawsuit filed in Santa Clara County Superior Court by the Ventura County District Attorney’s Office and five other California District Attorneys. The dealerships were accused of violating state laws requiring the timely transfer of registration and ownership of used vehicles. California law mandates that used car dealers submit an application to the DMV to transfer registration to a buyer within 30 days of the date of sale. The same 30-day deadline applies to the transfer of the certificate of ownership, or “pink slip,” with extensions allowed only if the DMV returns an application due to missing information.