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California car shoppers get upfront pricing, 3-day used-car return window under new law

"For years, car shoppers have been mistreated and duped into purchasing unsafe vehicles or vehicles with add-ons and features they didn't know about."

A used car lot.

Photo Credit: iStock

Buying a car can quickly go from a major purchase to a costly surprise when the sticker price changes at the dealership or extra features suddenly appear on the contract. 

California is taking steps to address that problem with a new law that gives shoppers more upfront transparency — and more protection after a used car sale, Pasadena Now reported.

Here's what to know

California's CARS Act, Senate Bill 766, gives used car buyers a three-day period to return a vehicle and requires dealers to provide the full price of a car at the start of the process. 

It also says dealers must disclose that add-ons are optional and that they cannot sell add-ons that offer no value to the customer.

Buyers can use that three-day window to arrange an inspection of a used vehicle or check for any unrepaired safety recalls. 

Under the new law, dealers can charge a restocking fee, and a vehicle can't be driven more than 400 miles if the buyer plans to return it.

State Sen. Ben Allen, D-Santa Monica, indicated that the law targets long-standing dealership practices that left buyers paying more than expected or driving away in vehicles with unresolved safety issues.

"For years, car shoppers have been mistreated and duped into purchasing unsafe vehicles or vehicles with add-ons and features they didn't know about, saddling them with unnecessary debt and risking their lives on the road," Allen explained. 

"These practices will finally come to an end in California."

More background

According to Allen's office, consumer David Lappen reported that a dealership raised the advertised price of a used electric vehicle by $5,000 by adding options. 

Those charges were for items such as converter etching and complimentary oil changes, which he viewed as irrelevant to the EV he was buying.

Allen's office also mentioned Anthony Vento, who drove away in a used car with an unrepaired safety recall defect — even after a dealership told him in writing that it had checked the vehicle's recall status.

"The California CARS Act will give California's used car buyers a new 3-day window of opportunity to check for unrepaired safety recalls and take unsafe cars back to the dealership for a refund," said Vento. 

"That can be a lifesaver."

Where can I learn more?

California's latest consumer-protection law is part of a broader effort to reshape how people buy and own cars. These articles cover EV rebates and policy ideas other states are considering.

• California is preparing instant EV rebates for first-time buyers amid higher overall car costs.

• State leaders are offering $3,500 to first-time buyers to keep EV demand steady.

• In Maine, regulators signaled interest in joining California and adopting incentives for EV purchases.

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