California Combating Auto Retail Scams (CARS) Act.
- Establishes new consumer protections for vehicle purchases including a 3-day right to cancel used car sales under $50,000.
- Requires dealers to clearly disclose all costs, fees and add-on products before finalizing vehicle sales or leases.
- Prohibits dealers from charging for add-on products or services that do not benefit the purchaser.
- Mandates dealers maintain detailed records for 2 years to demonstrate compliance with the new requirements.
Senator Allen's California Combating Auto Retail Scams (CARS) Act establishes new consumer protections for vehicle purchases and leases while reforming dealer disclosure requirements and sales practices. The legislation mandates a three-day right to cancel used vehicle purchases under $50,000, requires clear disclosure of add-on products and total pricing, and prohibits dealers from charging for unnecessary add-on services.
The Act requires dealers to provide buyers with detailed itemizations of all costs, including add-on products and financing terms, in advertisements and initial communications. Dealers must explicitly disclose that add-on products are optional and cannot charge for items that do not benefit the purchaser, such as nitrogen-filled tires with less than 95% purity or oil changes for electric vehicles.
For used vehicle transactions under $50,000, dealers must offer a three-day cancellation period, though they may charge restocking fees within specified limits based on vehicle price and mileage. The legislation also mandates that dealers maintain compliance records for two years, including documentation of pricing communications, contracts, and cancellation requests.
The law introduces new notice requirements, with dealers required to prominently display information about cancellation rights in sales offices and contracts. While new vehicle sales remain ineligible for cancellation periods, the Act ensures consumers receive clear notification of their rights and limitations regarding contract cancellation.
Taking effect October 1, 2026, the CARS Act amends multiple California codes to create a comprehensive framework for preventing deceptive auto retail practices while maintaining reasonable provisions for legitimate business operations.
 Benjamin AllenD Senator | Bill Author |  Not Contacted | |
 Ash KalraD Assemblymember | Bill Author | Not Contacted | |
 Henry SternD Senator | Bill Author | Not Contacted | |
 Joaquin ArambulaD Assemblymember | Committee Member | Not Contacted | |
 Buffy WicksD Assemblymember | Committee Member | Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 11 | 0 | 4 | 15 | PASS |
- Establishes new consumer protections for vehicle purchases including a 3-day right to cancel used car sales under $50,000.
- Requires dealers to clearly disclose all costs, fees and add-on products before finalizing vehicle sales or leases.
- Prohibits dealers from charging for add-on products or services that do not benefit the purchaser.
- Mandates dealers maintain detailed records for 2 years to demonstrate compliance with the new requirements.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Senator Allen's California Combating Auto Retail Scams (CARS) Act establishes new consumer protections for vehicle purchases and leases while reforming dealer disclosure requirements and sales practices. The legislation mandates a three-day right to cancel used vehicle purchases under $50,000, requires clear disclosure of add-on products and total pricing, and prohibits dealers from charging for unnecessary add-on services.
The Act requires dealers to provide buyers with detailed itemizations of all costs, including add-on products and financing terms, in advertisements and initial communications. Dealers must explicitly disclose that add-on products are optional and cannot charge for items that do not benefit the purchaser, such as nitrogen-filled tires with less than 95% purity or oil changes for electric vehicles.
For used vehicle transactions under $50,000, dealers must offer a three-day cancellation period, though they may charge restocking fees within specified limits based on vehicle price and mileage. The legislation also mandates that dealers maintain compliance records for two years, including documentation of pricing communications, contracts, and cancellation requests.
The law introduces new notice requirements, with dealers required to prominently display information about cancellation rights in sales offices and contracts. While new vehicle sales remain ineligible for cancellation periods, the Act ensures consumers receive clear notification of their rights and limitations regarding contract cancellation.
Taking effect October 1, 2026, the CARS Act amends multiple California codes to create a comprehensive framework for preventing deceptive auto retail practices while maintaining reasonable provisions for legitimate business operations.
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 11 | 0 | 4 | 15 | PASS |
Benjamin AllenD Senator | Bill Author | Not Contacted | |
Ash KalraD Assemblymember | Bill Author | Not Contacted | |
Henry SternD Senator | Bill Author | Not Contacted | |
Joaquin ArambulaD Assemblymember | Committee Member | Not Contacted | |
Buffy WicksD Assemblymember | Committee Member | Not Contacted |