This New California Law Changes Everything When It Comes To Buying A Car

A new California law has introduced a variety of consumer-friendly changes to the car-buying experience in the state of California. Senate Bill 766, also called the Combating Auto Retail Scams Act (CARS Act) will provide some new protections for buyers that are the first of their kind to have made it into law. It is set to take effect on October 1, 2026.

Foremost among these protections is a three-day right to cancel after buying a used car if the sale is under $50,000, so long as the car is in good shape and hasn't been driven more than 400 miles. If consumers do return a used vehicle after this law goes into effect, SB 766 states that they can be charged a restocking fee of 1.5% of the car's price. However, there is a minimum restocking fee of $200 and a maximum fee of $600. 

Additionally, the CARS Act requires that vehicles advertised by the dealer include a "total price," at the beginning of any negotiations with a potential buyer. This value must include the cost it requires to transport the vehicle from the dealership, and sellers can't tack on extra for things that already come on the vehicle, like roof racks or tow hitches. Buying a car at a dealership can be overwhelming, but SB 766 provides several consumer protections that are intended to serve as a safety net for consumers. 

The CARS Act also prohibits dealers from charging for add-ons that buyers don't actually need. This could include oil changes that are sold for electric vehicles that don't require them or a catalytic converter marking for a car that doesn't have one. It could also include charging for nitrogen-filled tires of less than 95% purity.

Finally, dealers must maintain proof of their compliance with this new law for at least two years after a sale. That means they have to keep advertising materials to show they complied with the requirement to list the total price at the get-go, as well as copies of purchase orders and proof that any add-ons they are charging for are necessary. Dealers also have to keep a record of complaints that previous consumers have sent in. All of this works together to give car buyers in California a better chance of getting through the process with a decent vehicle — paying for unnecessary and useless products and services.