SACRAMENTO, Calif. – The outcome of pending class action suits on the East coast brought by consumer groups against an auto manufacturer's financing company concerning buy-rate financing could influence the shape legislation on the issue may take in California. Under arrangements dealers have with certain financing companies and institutions, dealers sell financing paper they've drawn up with a vehicle buyer at a negotiated rate, for a higher rate with lenders. The dealer and lender subsequently either split the difference or the dealer keeps it entirely. Credit unions cannot participate in the practice. CCUL Lobbyist John Vann Etten said California legislators are considering three options – prohibiting the practice in California; requiring increased disclosure about the practice to vehicle buyers; or capping the rate dealerships can increase the rate. At this point, Vann Etten said state legislators are in a `wait and see' mode. He described them as, "snooping around the issue."