On October 1, the California CARS Act took effect. It targets some of the oldest frustrations in car buying: the price that changes once you sit down, the add-ons you never asked for, and the used car you regret by Tuesday. Here's what it means if you're the one doing the buying.
You see the real price first
Dealers must clearly disclose a new car's total price in any ad that references a specific vehicle, and in the first communication with you. If an ad or a first message shows only a teaser number, you now have good reason to ask where the total price is before you go any further.
Add-ons are optional, and dealers have to say so.
New car dealers must disclose that optional add-ons aren't required, and that you can buy or lease the car without them. They also can't charge you for add-ons that provide no benefit to you as the buyer or lessee. When a product shows up on the paperwork, ask what it actually does for you and what the price looks like without it.
Used cars: three days to change your mind
This is the biggest new right for shoppers. You get three days to cancel a used car purchase under $50,000, as long as the car is in good shape with fewer than 400 added miles. The dealer can charge a restocking fee of 1.5% of the price, between $200 and $600.
A few details matter here:
The cooling-off period does not apply to new vehicle purchases, so it only covers used cars.
It replaces the old system, where a cancellation option was something you could buy from the dealer. Now it's a right you get without paying extra for it.
The dealer must hand you a separate disclosure titled "3-Day Right to Cancel Used Car Purchase or Lease", so you know how to use it.
The terms are specific, so write down the odometer reading when you drive off. Added miles and the car's condition are what decide whether you qualify.
The sign on the wall
Dealerships must post a notice about the used-car cooling-off period in every sales office and signing room, in at least 36-point type. If you're in the finance office and don't see it, ask about it.
Where this came from
This started as a federal rule. The FTC's CARS Rule was vacated by the Fifth Circuit in January 2025, and California took many of the same ideas and put them in state law. Governor Newsom signed the Act on October 6, 2025. Dealers had a hand in the final version, too, since the California New Car Dealers Association secured several clarifications and revisions.
If you don't live in California
These rights apply to California dealers, so they don't follow you across state lines. But consumer advocates are already pushing other states to copy the law, and the National Consumer Law Center is encouraging legislatures across the country to act. Until that happens, you can still use the Act as a checklist and ask for the same things anywhere.
Before you sign
Ask for the total price in writing before you negotiate anything else.
Ask which add-ons are optional, what each one does for you, and what the deal costs without them.
On a used car, ask whether the three-day cancellation right applies and get the disclosure.
Note the mileage and condition at pickup, and mark the last day to cancel.
Look for the posted notice, and take your time reading before you sign.
The bottom line
The price you see first, add-ons you can say no to, and three days to reconsider a used car are the biggest changes for shoppers here. California is the first state to require all of it, and if other states follow, this checklist stops being a California thing.
Thanks for reading everybody!
-Paul