Bill > SB766

This bill establishes the California Combating Auto Retail Scams (CARS) Act, which introduces significant consumer protections for used vehicle purchases in California. The bill creates a new three-day right to cancel for used vehicles priced at $50,000 or less, replacing the existing two-day contract cancellation option. Under this new provision, buyers can return a vehicle within three days for any reason, with some restrictions, such as the vehicle cannot have been driven more than 400 miles. Dealers may charge a restocking fee, which is capped and calculated based on specific guidelines. The bill also prohibits dealers from making misrepresentations about vehicle sales, financing terms, add-on products, or vehicle availability. Dealers are required to make clear disclosures about total vehicle price, monthly payments, and add-on products, and are forbidden from charging for add-on products that do not benefit the consumer. Additionally, dealers must maintain detailed records of sales transactions for two years and are subject to penalties for non-compliance. The bill will become operative on October 1, 2026, and aims to protect consumers from deceptive practices in used vehicle sales by increasing transparency and providing a meaningful opportunity to reconsider a vehicle purchase.

Budget and Finance, Business and Industry, Justice, Transportation and Infrastructure

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB766