California Combating Auto Retail Scams (CARS) Act.

Senator Allen's California Combating Auto Retail Scams (CARS) Act establishes comprehensive consumer protections for vehicle purchases and leases while implementing new requirements for motor vehicle dealers. The legislation mandates a three-business-day right to cancel used vehicle transactions under $48,000 and prohibits dealers from charging for add-on products or services that do not benefit consumers.

The Act requires dealers to provide clear disclosures about vehicle pricing, financing terms, and optional add-on products in all advertisements and communications with customers. Dealers must explicitly state when products are not required for purchase and detail the total cost of monthly payment plans. The legislation bars misrepresentations about material transaction information, including vehicle availability, financing terms, and dealer affiliations.

For used vehicle transactions covered by the cancellation right, dealers must prominently display notices explaining the policy and provide detailed written disclosures about fees, mileage limitations, and procedures for returns. The Act requires dealers to maintain records demonstrating compliance for two years, including advertisements, contracts, complaint records, and documentation showing add-on products meet statutory requirements. These provisions replace existing contract cancellation option requirements while preserving other consumer protections under California law.