The bill would have required auto dealers to pay off loans on trade-in vehicles within four days of a transaction to clear the title. Supporters said many dealers have been going out of business before paying off loans on trade-in cars, leaving consumers holding the bag.
Car dealers had opposed the bill saying current laws already protect car buyers.
On a brighter note for car buyers, the new owners of /*Chrysler*/ said today they will honor so-called "lemon laws" even after the Chrysler reorganization.
Chrysler, Dodge and Jeep cars will still be covered under state lemon laws after Fiat takes over. Lemon laws give car buyers the right to be compensated for defects that can't be repaired.