Bill > SB766

This bill, known as the California Combating Auto Retail Scams (CARS) Act, introduces comprehensive protections for consumers purchasing used vehicles by establishing new requirements for car dealers. The legislation prohibits dealers from making misrepresentations about vehicle sales, including costs, financing terms, add-on products, and vehicle availability, and mandates clear and conspicuous disclosures about total vehicle prices and optional services. A key provision requires dealers selling used vehicles priced at $48,000 or less to provide buyers with a three-business-day right to cancel the purchase for any reason, during which they can return the vehicle with only limited fees (a restocking fee calculated based on miles driven and a daily use fee). The bill also restricts dealers from charging for add-on products that do not benefit the consumer, such as unnecessary service contracts or tire treatments, and requires dealers to maintain detailed records of sales transactions for two years to demonstrate compliance. Dealers must now clearly display a notice informing consumers about the cancellation right, and the bill aims to protect consumers from unfair and deceptive automotive sales practices by providing additional legal remedies and making existing consumer protection laws more robust.

Budget and Finance, Justice, Transportation and Infrastructure

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