Effective October 1, 2026, the California Combating Auto Retail Scams (CARS) Act places robust consumer protections on California auto dealers. Here’s what you need to know:
Who it Covers
- Applies to licensed California dealers selling or leasing light-duty (under 10,000 lb.) vehicles—both new and used.
- Exemptions include wholesale transactions, fleet sales (five or more units), auction sales, and commercial purchasers buying five or more vehicles per year.
Transparency & Pricing
- “Total Price” Required in any ad or initial written communication that references a specific vehicle or financing terms. Ads must be clear and conspicuous.
- First communication rule: the total price must appear in the first email, text, document, or form mentioning the vehicle or financing.
Prohibition on Misrepresentations
Dealers are barred from materially misrepresenting:
- Purchase, financing, or lease costs.
- Availability at advertised price.
- Terms and benefits of add-on products.
- Trade-in or down payment terms.
- Remedy if advertised price isn’t honored.
Add‑On Products
- Optional products (like warranties, GAP, theft protection) must be clearly disclosed and explicitly stated as optional, in writing, before signing.
- No “worthless” add-ons: Dealers cannot charge for products that provide no meaningful benefit—e.g., pointless oil-change plans for electric vehicles.
Cooling-Off Period
- Buyers of used vehicles valued $50,000 or less has a three-day (including weekends) cancellation right for any reason.
- Conditions apply: typically, mileage limits (around 400 miles) and potential restocking fees ($200–$600).
Record-Keeping Requirements
- Dealers must retain records for 2 years showing: advertisements, first communications, pricing disclosures, add-on consents, cancellation notices, etc.
Why It Matters
- Aims to reduce deceptive practices like hidden fees, bait-and-switch ads, and unnecessary add-ons.
- Mirrors many provisions from the federal CARS Rule but is enforceable at the state level following federal disapproval.
Record of Complaint Form
If the dealer fails to comply with the Car Buyer’s Bill of Rights, you may file a complaint online.
The form is also available by calling 1-800-777-0133.
Verifying a Dealer’s License Status
Search Occupational Licensing Status Information System or contact your local DMV Inspector Office.
Civil Disputes
When possible, attempt to resolve the problem with the other party or firm. If unable to obtain a resolution, consider contacting a private attorney, the small claims division of your local county court, and a legal aid group for assistance. Refer to the County Government section of your local telephone directory for the county court in your area.
Consumer Alternatives
Many consumers contact their local Better Business Bureau (BBB) to register complaints regarding area businesses. Refer to the Business section of your local telephone directory for the BBB in your area.
For assistance in filing consumer complaints, contact:
California Attorney General
www.oag.ca.gov
1-800-952-5225
Bureau of Automotive Repair
www.smogcheck.ca.gov
1-800-952-5210
Arbitration Certification Program
www.dca.ca.gov/acp/
916-574-7350
Consumer Motor Vehicle Recovery Corporation
http://www.cmvrc.org/
1-800-961-6175
For help finding the right government agency to assist with your problem, contact:
California Department of Consumer Affairs
www.dca.ca.gov
1-800-952-5210
Disclaimer
This information is only a summary of the law and should not be considered the law. DMV, law enforcement, and the courts follow the full, exact language of the law contained in the California Vehicle Code and California Civil Code, available at www.leginfo.ca.gov.