California's CARS Act: What It Means When You Buy a Used Car

The short answer

California’s CARS Act (Senate Bill 766, the Combating Auto Retail Scams Act) took effect on October 1, 2026. It sets new rules for how dealers advertise prices, sell add-ons and quote payments, and it gives buyers of many used cars a 3-day right to return the car. Premium Autos has been in business for 10 years, and we follow the CARS Act at both of our stores, in Norco and South El Monte.

This article explains the law in plain English so you know what to expect at any California dealer. It is a summary, not legal advice. The full text is on the California Legislature’s SB 766 page.

What the CARS Act requires

1. The total price, up front

When a dealer advertises a specific car, the ad has to show its total price, and so does the dealer’s first written reply to you. The total price includes anything the dealer adds, such as a markup or items already installed on the car. Only sales tax and government fees (title and registration) are left out.

2. Add-ons are optional, and they have to be worth something

An add-on is any product or service the dealer charges for that the manufacturer didn’t provide, such as a service contract, GAP waiver, window tint or paint protection. Under the CARS Act:

• A dealer can’t charge you for an add-on that gives you no benefit. The common example is an oil-change plan on an electric car, which has no engine oil to change.
• When a dealer talks about an add-on in writing, it must also tell you, clearly, that the add-on is not required and that you can buy or lease the car without it.

3. Payment quotes show the whole cost

When a dealer gives you a monthly payment in writing, it also has to show what you will pay in total over the full loan. A low monthly payment can hide a long term, so this number lets you compare offers fairly.

4. A 3-day return right on many used cars

If you buy a used car priced at $50,000 or less, you can return it within 3 days. The law sets conditions, such as a mileage limit and a restocking fee whose amount the law limits. The dealer must explain the right to you in writing. This replaces California’s older “contract cancellation option,” which buyers had to pay extra for.

5. Records

Dealers must keep the records that show they followed the law, so a buyer or the state can check later.