{"id":1458,"date":"2025-11-07T23:15:11","date_gmt":"2025-11-07T23:15:11","guid":{"rendered":"https:\/\/www.autobuyersmarket.com\/news\/?p=1458"},"modified":"2025-11-07T23:15:12","modified_gmt":"2025-11-07T23:15:12","slug":"californias-new-cars-act-rewrites-the-playbook-for-car-sales-and-leases","status":"publish","type":"post","link":"https:\/\/www.autobuyersmarket.com\/news\/2025\/11\/07\/californias-new-cars-act-rewrites-the-playbook-for-car-sales-and-leases\/","title":{"rendered":"California\u2019s New CARS Act Rewrites the Playbook for Car Sales and Leases"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"600\" src=\"https:\/\/www.autobuyersmarket.com\/news\/wp-content\/uploads\/2024\/05\/CarsRule_76962058.jpg\" alt=\"The CARS Rule addresses several issues that consumers have complained about in recent years, including fraudulent behavior on the part of unscrupulous sellers such as bait-and-switch tactics\" class=\"wp-image-974\" srcset=\"https:\/\/www.autobuyersmarket.com\/news\/wp-content\/uploads\/2024\/05\/CarsRule_76962058.jpg 900w, https:\/\/www.autobuyersmarket.com\/news\/wp-content\/uploads\/2024\/05\/CarsRule_76962058-300x200.jpg 300w, https:\/\/www.autobuyersmarket.com\/news\/wp-content\/uploads\/2024\/05\/CarsRule_76962058-768x512.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption class=\"wp-element-caption\"><em>California\u2019s law steps into a gap left when the FTC\u2019s federal CARS Rule-finalized in 2024-was set aside on procedural grounds earlier this year.<\/em> <em>File photo: Gunter Nezhoda, ShutterStock.com, licensed.<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">LOS ANGELES, CA &#8211; California has enacted the Combating Auto Retail Scams (CARS) Act), a sweeping overhaul of dealership advertising, pricing, and paperwork standards that Governor Gavin Newsom signed on October 6, 2025. The law takes effect October 1, 2026, giving retailers a year to retool how they market vehicles, present numbers to shoppers, and document each step of a sale or lease. At its core, the measure aims to replace gotcha fees and opaque pricing with early, uniform disclosures and verifiable records-while adding a first-in-the-nation, three-day return right for most used-car purchases under a set price cap.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What changes for buyers and dealers:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Early, accurate numbers: If an ad or message shows a number for a specific car, it must also show the total price-including any required dealer-installed items\u2014up front. MSRP-only teasers are out unless that\u2019s the true total price. Dealerships must save these communications for two years. <\/li>\n\n\n\n<li>Payment comparisons with context: Any discussion of monthly payments must include the total amount the customer would pay over the term, and clearly note when a lower monthly number results in higher overall cost.<\/li>\n\n\n\n<li>Optional means optional: Add-ons must be plainly labeled as not required, and \u201c<em>junk<\/em>\u201d products that don\u2019t benefit the buyer are prohibited.<\/li>\n\n\n\n<li>Used-car cooling-off right: For most used vehicles \u2264 $50,000, buyers get three days to return the car if kept in essentially the same condition and under the mileage limit. A capped restocking fee can apply; financing is reversed on return. New vehicles and certain transaction types are excluded.<\/li>\n\n\n\n<li>Enforcement teeth: Violations can be pursued as unfair or deceptive practices under long-standing California consumer-protection statutes, enabling restitution and injunctions alongside other remedies.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">California\u2019s law steps into a gap left when the FTC\u2019s federal<a href=\"https:\/\/www.autobuyersmarket.com\/news\/2024\/10\/16\/appeals-court-weighing-nada-challenge-to-ftc-combating-auto-retail-scams-cars-rule\/\"> CARS Rule-finalized in 2024<\/a>-was set aside on procedural grounds earlier this year. SB 766 carries many of the same themes into state law, with some California-specific clarifications negotiated during the session.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Timeline:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Signed: Oct 6, 2025<\/li>\n\n\n\n<li>Effective \/ enforceable: Oct 1, 2026<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>LOS ANGELES, CA &#8211; California has enacted the Combating Auto Retail Scams (CARS) Act), a sweeping overhaul of dealership advertising, pricing, and paperwork standards that Governor Gavin Newsom signed on October 6, 2025. The law takes effect October 1, 2026, giving retailers a year to retool how they market vehicles, present numbers to shoppers, and [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":974,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-1458","post","type-post","status-publish","format-standard","has-post-thumbnail","category-market-updates","entry"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 5.0.3 - aioseo.com -->\n\t<meta name=\"description\" content=\"LOS ANGELES, CA - California has enacted the Combating Auto Retail Scams (CARS) Act), a sweeping overhaul of dealership advertising, pricing, and paperwork standards that Governor Gavin Newsom signed on October 6, 2025. 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