A new era in car buying in California: the 3‑day return right arrives
The new CARS Act targeting car sales in California came into force on October 1. The regulation makes it mandatory to clearly state the total price in vehicle listings, while a 3‑day return right is introduced for used cars under certain conditions.
Under the new law, used cars purchased from a dealer for $50,000 or less can be returned by the buyer within three calendar days without providing any reason.
The right to return will begin the day after the sale, and the vehicle may have been driven up to 400 miles. Dealers may typically charge a restocking fee between $200 and $600, depending on the car’s price.
The dealer must refund the price of the returned vehicle within 48 hours. If the car suffers serious damage, the right to return will not apply.
Limiting 'unnecessary' add‑on fees
Under the CARS Act, total prices must be displayed in car advertisements and written offers for a specific vehicle or financing condition.
Dealers will also be prohibited from selling certain add‑on products and services that are deemed unnecessary to consumers. For example, offering oil‑change packages or catalytic‑converter engravings for electric vehicles—services unrelated to the vehicle—falls within the practices the regulation seeks to curb.
The new rules do not cover sales between private individuals, new cars, auction sales, or the purchase of existing vehicle rentals.
The purpose of the new regulation in California is explained as making prices and additional fees more transparent in the vehicle purchase process.
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