California implements new consumer protections for auto sales

California has implemented the Combating Auto Retail Scams (CARS) Act, a new law designed to increase price transparency and curb deceptive practices in vehicle sales. The legislation applies to both new and used vehicles sold by licensed dealers.

Under the new regulations, dealers are required to disclose the total advertised price upfront and are prohibited from charging for add-on products that provide no meaningful benefit. Additionally, buyers of used vehicles priced at $50,000 or less are granted a three-day cancellation period for any reason, though this is subject to mileage limits and a small restocking fee.

State officials anticipate the law will save consumers hundreds of millions of dollars annually by reducing hidden fees and high-pressure sales tactics. The CARS Act is considered one of the most comprehensive sets of retail auto protections in the United States.