HB10 Alabama 2020 Session

Summary

Primary Sponsor

Becky Nordgren

Republican

Session

Regular Session 2020

Title

Motor vehicle dealers, sale of vehicles, disclosure of portion of finance charge received by dealer from financial institution

Summary

HB 10 would require new or used motor vehicle dealers to disclose to buyers the portion of the finance charge they receive from lenders when arranging vehicle financing.

What This Bill Does

If passed, dealers who offer or arrange financing must tell the buyer exactly how much of the financing charge or dealer compensation comes from the financial institution. The bill defines terms like finance charge, financial institution, and interest rate add-on. It applies to both new and used vehicle purchases and sits alongside existing consumer finance laws.

Who It Affects

• New or used motor vehicle dealers that offer or arrange financing, who must disclose their compensation from lenders to buyers.
• Consumers purchasing a new or used vehicle with financing, who will receive this disclosure during the sale.

Key Provisions

• Requires motor vehicle dealers to disclose to the consumer any interest rate add-on or portion of the finance charge the dealer receives from a financial institution for arranging financing with that institution.
• Provides definitions for Finance Charge, Financial Institution, Interest Rate Add-On, and Motor Vehicle Dealer; states the act is supplemental to existing consumer finance laws and specifies the effective date as the first day of the third month after passage and gubernatorial approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles