California’s CARS Act Ushers in a New Era of Transparent Auto Sales

A major update to consumer protections is shifting how vehicles are bought and sold in the state of California. The new California Combating Auto Retail Scams (CARS) Act introduces a set of rules designed to tackle some of the industry’s most persistent challenges. For car enthusiasts, everyday drivers, and industry insiders alike, this is a game-changer worth revving up about.

What Is California’s CARS Act?

At its core, the CARS Act brings transparency to areas where it’s long been lacking. Dealerships must now provide clear, upfront disclosures. Every advertisement and price quote has to feature the vehicle’s total cost, leaving no room for hidden fees or misleading tactics for California car buyers. Misrepresenting key details about a car’s sale, lease, or financing is explicitly prohibited, helping ensure buyers can make informed decisions.

The reforms extend beyond the sticker price. Optional add-ons—like GAP insurance, extended warranties, or service contracts—have often been bundled in ways that feel more obligatory than elective. The CARS Act requires these items to be clearly identified as optional, giving buyers the freedom to choose without pressure. Plus, a 10-day grace period to pay for any add-ons provides a little breathing room, acknowledging that purchasing a vehicle can be a whirlwind decision.

Three-Day Return Policy for Used Cars

One of the most notable provisions is a three-day return policy for used cars priced under $50,000. Test-drive that pre-owned sedan home and find it doesn’t quite fit your lifestyle? You can return it—no questions asked—as long as it remains undamaged and has fewer than 400 miles. This measure offers an important safety net for buyers in a market where used-car risks can be high.

The law now requires dealerships to keep records of ads, contracts, add-ons, and returns for at least two years.. While it may seem bureaucratic, this creates a valuable audit trail and encourages accountability across the industry.

When Will the CARS Act begin?

Set to roll out on October 1, 2026, the CARS Act gives dealerships time to adjust operations. This includes updating software, training staff, and refining sales practices. For consumers, the benefits may not be immediate, but the horizon looks promising. In a market where auto sales reach billions annually and household budgets are already tight, these measures could translate to real savings. Not to mention, better peace of mind.

Far from a crackdown on dealerships, the CARS Act is a bold recalibration of the buying experience. It levels the playing field in a game too often tilted toward the seller. For those who live for the hum of an engine and the freedom of the open road, it’s a pledge of a smoother ride from showroom to driveway, free from the potholes of deception.

What are your thoughts on the new CARS Act? Do you think the car-buying experience could benefit from greater transparency? We’d love to hear your perspective—share your thoughts in the comments!