Assembly Green Lights Bill to Modernize the Car Purchasing Process

Thursday, May 19, 2016

AB 1743 allows consumers to purchase or lease a car with an electronic signature

(Sacramento) – Today, Assembly Bill 1743, the Digital Modernization Act of 2016, authored by Assemblymember Matt Dababneh (D – Encino) passed the Assembly Floor with a bipartisan vote of 70 to 0. Sponsored by the California New Car Dealers Association, AB 1743 will modernize California’s Automobile Sales Finance Act and the California Vehicle Leasing Act by allowing consumers to purchase or lease a vehicle with an electronic signature.

“Electronic records and signatures have revolutionized the way commercial transactions are conducted and the car buying process should not be excluded,” states Assemblymember Matt Dababneh. “Assembly Bill 1743 will bring the car buying process into the 21st century by allowing consumers to electronically purchase or lease a car, if they opt to do so.”

Assembly Bill 1743, a California Tech Caucus priority bill, will remove restrictions within California’s Automobile Sales Finance Act and the California Vehicle Leasing Act that prohibits consumers from purchasing or leasing a vehicle with an electronic signature. Under the bill, all existing consumer protections afforded in existing law will be maintained and consumers must voluntary opt-in to sign their documents electronically. AB 1743 will improve the car buying or leasing process for consumers while also resolving the legal uncertainty surrounding the use of these electronic contracts and signatures.

“The sales contract for a new car is 28 inches long and is only one of five separate documents that must be signed and retained by the car dealership for years,” states Dababneh.  “When you consider the over two million new cars that were sold in 2015, our current paper document retention method presents a major burden to car dealers and consumers in California. Further, with an electronic form, document accuracy will be improved by ensuring all required signatures are obtained before finalizing the transaction. This is in contrast to the traditional method where required signatures can easily be missed.”

Assembly Bill 1743 will now be sent to the State Senate for consideration.

Matt Dababneh represents the 45th Assembly District that includes the communities of Bell Canyon, Calabasas, Canoga Park, Chatsworth, Encino, Hidden Hills, Northridge, Reseda, Sherman Oaks, Tarzana, West Hills, Winnetka, and Woodland Hills. Please visit the Assemblymember’s website,, for more information.