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OregonHB 31782025 Regular SessionHouseWALLET

Relating to conditions for financing a transaction involving a motor vehicle.

Sponsored By: Kathleen Taylor (Democratic), Nathan Sosa (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Car buyers get stronger trade-in protections

Before final funding approval, dealers cannot sell or lease your trade-in or pay off its loan. If a dealer sells it early, the dealer owes the greatest of its loan payoff balance, trade-in value, or sale proceeds. That amount is reduced by any loan balance the dealer paid. If the dealer pays off the loan but keeps the trade-in, it must return it and finance what you owed on the original loan’s terms.

Failed car financing requires refunds and returns

If the lender has not agreed to the exact terms and final funding approval is missing within 10 calendar days after possession, the dealer must honor those terms or void the deal. If voiding, the dealer must notify the buyer within two days after that period ends and return everything of value received. A dealer that neither accepts nor expressly rejects the deal within the 10-day period is treated as voiding it. Buyers must return the vehicle and other items of value received when the deal is voided. Dealers can charge only fair-market-value amounts for damage, excessive wear, or loss during possession, if allowed in writing; mileage-use charges are removed.

Car buyers get clearer financing notices

For covered Oregon household vehicle sales and leases, dealers must give buyers a separate, clear English notice before closing. It explains the right to cancel if financing on the negotiated terms is not approved within 10 calendar days after possession. The Attorney General provides downloadable model forms in English, Spanish, Vietnamese, Chinese, and Russian. Dealers must make good-faith efforts to secure financing on the exact negotiated terms. Violations of any requirement in the vehicle-financing law count as unlawful consumer practices. These notice requirements cover contracts and leases entered into on or after the law’s effective date.

Sponsors & Cosponsors

Sponsors

  • Kathleen Taylor

    Democratic • Senate

  • Nathan Sosa

    Democratic • House

Cosponsors

  • Dacia Grayber

    Democratic • House

  • Deb Patterson

    Democratic • Senate

  • John Lively

    Democratic • House

  • Lew Frederick

    Democratic • Senate

  • Willy Chotzen

    Democratic • House

  • Wlnsvey Campos

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 139 • No: 2

House vote • 5/6/2025

House concurred in Senate amendments and repassed bill.

Yes: 49 • No: 0

Senate vote • 5/1/2025

Third reading. Carried by Taylor. Passed.

Yes: 24 • No: 2

Senate vote • 4/24/2025

Labor and Business: Heard and Reported Out with Amendments

Yes: 5 • No: 0

House vote • 4/10/2025

Third reading. Carried by Sosa. Passed.

Yes: 53 • No: 0

House vote • 4/1/2025

Commerce and Consumer Protection: Heard and Reported Out with Amendments

Yes: 8 • No: 0

Actions Timeline

  1. Chapter 81, (2025 Laws): Effective date January 1, 2026.

    6/6/2025House

  2. Governor signed.

    5/14/2025House

  3. President signed.

    5/8/2025Senate

  4. Speaker signed.

    5/8/2025House

  5. House concurred in Senate amendments and repassed bill.

    5/6/2025House

  6. Third reading. Carried by Taylor. Passed.

    5/1/2025Senate

  7. Second reading.

    4/30/2025Senate

  8. Recommendation: Do pass with amendments to the A-Eng. bill. (Printed B-Eng.)

    4/29/2025Senate

  9. Work Session held.

    4/24/2025Senate

  10. Work Session held.

    4/22/2025Senate

  11. Public Hearing held.

    4/17/2025Senate

  12. Referred to Labor and Business.

    4/10/2025Senate

  13. First reading. Referred to President's desk.

    4/10/2025Senate

  14. Third reading. Carried by Sosa. Passed.

    4/10/2025House

  15. Rules suspended. Carried over to April 10, 2025 Calendar.

    4/9/2025House

  16. Rules suspended. Carried over to April 9, 2025 Calendar.

    4/8/2025House

  17. Second reading.

    4/7/2025House

  18. Recommendation: Do pass with amendments and be printed A-Engrossed.

    4/4/2025House

  19. Work Session held.

    4/1/2025House

  20. Public Hearing held.

    2/4/2025House

  21. Referred to Commerce and Consumer Protection.

    1/17/2025House

  22. First reading. Referred to Speaker's desk.

    1/13/2025House

Bill Text

  • SLB Amendment -A4 (Adopted)

    4/24/2025

    PDF

  • HCCP Amendment -3 (Adopted)

    4/1/2025

    PDF

  • HCCP Amendment -1 (Proposed)

    3/27/2025

    PDF

  • HCCP Amendment -3 (Proposed)

    3/27/2025

    PDF

  • HCCP Amendment -1 (Proposed)

    3/25/2025

    PDF

  • A-Engrossed

    PDF

  • B-Engrossed

    PDF

  • Enrolled

    PDF

  • House Amendments to Introduced

    PDF

  • Introduced

    PDF

  • Senate Amendments to A-Engrossed

    PDF

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