A new California law, the California Combating Auto Retail Scams (CARS) Act, is set to take effect on October 1, introducing significant changes to how vehicles are sold and leased across the state. This legislation, known as Senate Bill 766, aims to shield buyers and lessees, including Irvine residents, from undisclosed costs, ambiguous terms, and aggressive sales tactics.
The core of the CARS Act requires dealerships to advertise the total price of vehicles. Additionally, it mandates that all optional add-ons and features must be clearly distinguished as such, ensuring consumers understand exactly what they are paying for beyond the base vehicle price. This measure directly addresses concerns over hidden costs that have historically emerged late in the car-buying process.
The bill was authored by Senator Bill Allen of Santa Monica and was signed into law last October by Governor Gavin Newsom. In a press release, Senator Allen stated that the bill "will codify best-in-class protections for California car buyers," highlighting its intent to make the car buying experience "more fair and transparent" for consumers throughout the state.
Among its most notable provisions is a "right to cancel" policy, which is described as a first-in-the-nation measure. This policy grants buyers and lessees a three-day window to return a purchased or leased vehicle, provided its value is less than $50,000. This offers a new avenue for recourse for consumers who may have second thoughts about a purchase shortly after completing the transaction.
The need for such legislation was articulated by Ted Mermin, director of the California Low-Income Consumer Coalition. In an October press release, Mermin described the CARS Act as "a significant step forward for California consumers and for an industry that has been allowed to get away with outrageous sales tactics for far too long." He further elaborated on the expected impact, noting that while currently a customer might endure a long wait to learn a car's true cost, the CARS Act is designed to ensure they receive a "direct answer" when inquiring about pricing.
The new regulations will apply broadly to a wide range of vehicles. Both used and new vehicles weighing under 100,000 pounds are subject to the act's requirements. This ensures that the protections extend across a significant portion of the consumer vehicle market.
As of October 1, Irvine residents engaging with car dealerships for new purchases or leases can anticipate greater clarity and transparency in pricing. The inclusion of the cancellation period for eligible vehicles also provides an added layer of consumer security, reshaping the vehicle transaction landscape statewide.