5. BUYER'S USED CAR CANCELLATION OPTION

Starting in July 1, 2006 Dealers are required give a USED-CAR buyer a "contract cancellation option". This new option for used car buyers must be disclosed on the contract under a caption "THERE IS NO COOLING-OFF PERIOD UNLESS YOU OBTAIN A CONTRACT CANCELLATION OPTION". The dealer must allow the buyer at least two days in which to cancel.

This cancellation option is ONLY available for used cars costing less than $40,000.00 and does not apply to motorcycles or Recreational Vehicles. The maximum allowable cost of the cancellation option is proportional to the sale price of the used car. The cost of the cancellation option is broken down in to two separate charges:

1. The cancellation option cost giving the buyer the right to cancel.
2. Dealer Restocking Fee (only charged if buyer actually cancels)

CANCELLATION OPTION COST: The maximum option cost the dealer may charge is based on the following costs of the used car being purchased:

• Under $5,000.00: $75.00
• Between $5,000.01 and $10,000.00: $150.00
• Between $10,000.01 and $30,000.00: $300.00
• Between $30,000.01 and $40,000.00: One percent (1%)

RESTOCKING FEE: The dealer may only charge this fee in the event the buyer actually wants to cancel the contract and give the car back to the dealer. The dealer MUST apply what the buyer paid for the cancellation option TOWARD the Restocking Fee. The dealer may charge the following restocking fees which are based on the following used car costs:

• Under $5,000.00: $175.00
• Between $5,000.01 and $10,000.00: $300.00
• More Than $10,000.00 $500.00