Dishonest and misleading car dealership tactics are under fire thanks to the California CARS Act. This could be a huge win for consumers all over the state.
The days of greasy, sleezy, and loud car dealership advertising are over, but that hasn’t stopped some dealers from continuing with misleading advertising practices or adding unnecessary costs to a car deal. The last time you bought a car, did you understand every fee that was associated with that purchase? Many consumers don’t, and some dealers have taken advantage of them. The new California CARS Act aims to put an end to these practices.
California consumer protection laws are stronger against car dealership scams
Starting October 2026, California car buyers get some serious backup against dealership shenanigans. The new CARS Act bans valueless add-ons, requires honest pricing disclosures, and even gives you three days to back out of a used car purchase if you feel like you got pressured into something you didn’t want. About time someone put the brakes on those classic dealership tricks. The rest of the country should pay attention to how California is putting an end to shady dealership practices while providing used car buyer protection.
What does the California CARS Act stand for?
Leave it to politicians to find a way to use an acronym that fits the intent. The CARS part of the name stands for Combating Auto Retail Scams, which is right on the nose. California Governor Gavin Newsom signed the act into law to improve and strengthen car-buying rights in California, ensuring unnecessary dealership add-on costs are no longer allowed in the state. The new law provides several other protections as well, giving consumers a bit more peace of mind when the act goes into effect next October.
No more valueless add-ons
Have some of the items sold by car sales teams in the past seemed like pure trickery? If you’ve dealt with shady or dishonest car dealerships, they certainly could be. Some things seem obvious, but when in the middle of a car sale, it can be hard to focus on the common sense of reality. You don’t need an oil change package when buying an electric vehicle, and if your car doesn’t have a catalytic converter, why would you need it to be etched? Yes, these are real services that have been offered, and this nonsense practice must be stopped. Thankfully, that’s exactly what the California CARS Act aims to do.
Does this mean dealers can’t offer add-on services?
Not at all. Some of the best values a customer can get will be in a packaged service for the first few years of maintenance. An add-on product that has actual value can still be offered, and it doesn’t matter if the buyer uses that service or not, as long as its disclosed and explained during the sales process. There are still some aspects to car buying that must be part of the consumer’s responsibility, and understanding what they have purchased is part of that.
The California CARS Act allows no-obligation returns
Buying a car is a big commitment, and for most drivers, the second largest purchase they make after buying a house. Many dealers don’t allow returns, but this new law gives consumers a three-day grace period to reconsider their purchase. If a used car costs $50,000 or less, and it’s returned within the first three days, the consumer can return it. That said, there are some fees involved and other restrictions, such as:
- The car can’t have been driven more than 400 miles during the three days
- The dealer can charge a 1.5 percent restocking fee not to exceed $600
- The dealer can charge a per-mile fee of up to $1 per mile
Consumers won’t get out of the contract without paying something, but these small fees are less painful than living with a car that you don’t actually want to drive.
What does this mean for honest dealers?
The new California CARS Act means more red tape for reputable dealers, but also more protection for consumers. It might be a bit of an annoyance for dealers already doing things the right way, but the impact will be minimal. The same can’t be said for dealers that practice sketchy and shady dealings and rely on valueless add-ons to boost their bottom line.
Will you have more peace of mind when purchasing your next vehicle thanks to the new California CARS Act? Do you think you’ll notice the dealers that have had to change tactics away from shady dealings and practices?
