California CARS Act: new protections for used-car buyers
California CARS Act bans hidden add-on fees, adds 3-day returns
California CARS Act: new protections for used-car buyers
Discover how California's CARS Act shields used-car buyers: bans hidden add-on fees, outlaws irrelevant extras, and grants a three-day return window statewide.
2025-10-25T18:38:05+03:00
2025-10-25T18:38:05+03:00
2025-10-25T18:38:05+03:00
California has enacted a new law, the California Combating Auto Retail Scams (CARS) Act, designed to protect used-car buyers. It takes effect on October 1, 2026, and brings a slate of restrictions for dealerships, including a ban on hidden add-on fees and the introduction of a three-day return window.The law prohibits sellers from rolling into the deal the cost of services or products unrelated to the vehicle or its operation. Among the examples are “oil-change packages” pitched to electric cars and “catalytic converter etching” for models that don’t have one. It zeroes in on extras that can pad the final contract.Buyers also gain the right to return a used vehicle priced up to $50,000 within three days, provided the mileage stays under 400 miles (644 km) and the car remains undamaged. A dealer may retain a fee of up to 1.5% of the vehicle’s price, capped at $600. The conditions build in a cooling-off period while discouraging misuse.Experts expect the new law to strengthen trust in the used-car market, protecting shoppers from unscrupulous sellers and unjustified markups. For many buyers, it reads like a practical reset that could make the purchasing process more transparent and less combative.
California CARS Act, used-car buyers, hidden add-on fees, three-day return window, dealership restrictions, consumer protection, used-car market, auto retail scams
2025
Michael Powers
news
California CARS Act bans hidden add-on fees, adds 3-day returns
Discover how California's CARS Act shields used-car buyers: bans hidden add-on fees, outlaws irrelevant extras, and grants a three-day return window statewide.
Michael Powers, Editor
California has enacted a new law, the California Combating Auto Retail Scams (CARS) Act, designed to protect used-car buyers. It takes effect on October 1, 2026, and brings a slate of restrictions for dealerships, including a ban on hidden add-on fees and the introduction of a three-day return window.
The law prohibits sellers from rolling into the deal the cost of services or products unrelated to the vehicle or its operation. Among the examples are “oil-change packages” pitched to electric cars and “catalytic converter etching” for models that don’t have one. It zeroes in on extras that can pad the final contract.
Buyers also gain the right to return a used vehicle priced up to $50,000 within three days, provided the mileage stays under 400 miles (644 km) and the car remains undamaged. A dealer may retain a fee of up to 1.5% of the vehicle’s price, capped at $600. The conditions build in a cooling-off period while discouraging misuse.
Experts expect the new law to strengthen trust in the used-car market, protecting shoppers from unscrupulous sellers and unjustified markups. For many buyers, it reads like a practical reset that could make the purchasing process more transparent and less combative.
