Coming Soon: The California CARS Act (SB 766)
California is cracking down on shady dealership tactics with the new CARS Act (SB 766). Effective October 1, 2026, this law is designed to eliminate hidden fees and bait-and-switch pricing to make car buying transparent again.
4 Key Changes You Need to Know
If you are planning to buy a new or used vehicle in California after October 2026, here are the major protections you will gain:
- Total Price Transparency: Dealerships will be required to advertise the full price of the car. They can no longer lure you in with a low “teaser” price only to inflate it later with mandatory fees or dealer packages. The price you see is the price you should expect to pay (excluding government fees like tax and registration).
- No More Deceptive Financing: The law prohibits dealers from misrepresenting monthly payments, interest rates, or your financing eligibility. If they say you “must” finance with them to get a deal, it has to be true and not just a sales tactic.
- Crackdown on Useless Add-Ons: Dealers often profit from selling extras like GAP insurance, chemical coatings, or service plans. The CARS Act bans the sale of add-ons that provide no benefit to the specific buyer (such as oil change plans for Electric Vehicles) and requires clear disclosure that these items are optional.
- A 3-Day Right to Return Used Cars: Perhaps the biggest game-changer is a “cooling-off” period. For used cars sold for $50,000 or less, buyers will have the right to return the vehicle within three business days (provided it has been driven less than 400 miles and is undamaged), subject to a capped restocking fee.
Need the fine print? Make sure you know your rights before signing your next contract.
[Read the full article here: The New California CARS Act (SB 766): What Car Buyers Need to Know]