New California car-buying rules take effect, adding protections for consumers

THOUSAND PALMS, Calif. (KESQ)- A new California law changing how cars are sold took effect, Oct. 1st bringing new pricing rules and added protections for buyers.

The California Combating Auto Retail Scams Act, or CARS Act, applies to licensed dealers selling or leasing most new and used vehicles in the state.

Under the new law, dealers must clearly provide the total price of a vehicle in advertisements and in the first written communication that mentions a specific vehicle or financing terms. Optional add-ons, including warranties, GAP coverage and theft-protection products, must also be clearly identified as optional before a buyer signs.

The law also expands protections for some used-car buyers. Consumers purchasing a used vehicle valued at $50,000 or less must be offered a three-day cancellation option agreement. The DMV says conditions can apply, including mileage limits and possible restocking fees. It is not an automatic three-day cooling-off period.

The California New Car Dealers Association called the law the biggest change to how vehicles are sold in the state since 2005. In a statement provided to News Channel 3, the association said dealers have spent months preparing for the new requirements and said the changes could add time and cost to the sales process.

The association also said customers should expect a more transparent buying experience under the new rules.

The CARS Act took effect Oct. 1, 2026.