SACRAMENTO, Calif., Oct. 1 (Nationwide Times) — California auto dealers must list a vehicle’s total price in ads and give eligible used-car buyers three days to cancel a purchase under a state law taking effect Oct. 1, 2026.
The Combating Auto Retail Scams Act, known as the CARS Act, applies to licensed dealers selling or leasing new and used light-duty vehicles weighing less than 10,000 pounds, according to the California Department of Motor Vehicles.
Dealers must show the total price in ads for a specific vehicle and in their first written communication mentioning that vehicle or its financing. They must also tell customers in writing that add-on products are optional and cannot charge for products that provide no meaningful benefit, such as an oil-change plan for an electric vehicle.
Buyers of qualifying used vehicles priced at $50,000 or less can cancel within three days, including weekends, subject to conditions. Under the law, the right is lost if the vehicle is driven more than 400 miles. Dealers may charge a restocking fee of 1.5% of the sale price, with a $200 minimum and a $600 maximum.
The law also requires dealers to keep compliance records, including ads, first written communications and cancellation notices, for two years, the DMV said.
