New California laws rewrite car-buying rules with return policy and pricing reforms

"California lawmakers made major changes to the state's car-buying rules this year, including a controversial rewrite of the state law that allows buyers to get their money back if they are sold a defective vehicle and a right to return a used vehicle within three days. After an intense lobbying push this year from automobile companies, dealers and consumer groups, more legislative battles over California vehicle purchases could follow in 2026."

"Sen. Ben Allen, a Democrat representing the El Segundo area, said he expects California's Democratic-controlled Legislature will likely push back against national Republicans' attack on California's vehicle policies in some form next year, though he said it wasn't yet clear how. We're very committed to this path, so stay tuned, but clean air is a priority for our state, said Allen, who chairs the Senate's Select Committee on Transitioning to a Zero-Emission Energy Future."

California enacted major changes to car-buying rules, including a rewritten refund provision for defective vehicles and a first-in-the-nation three-day return right for used cars priced under $50,000. The law, effective in October, allows dealers to charge a restocking fee and requires disclosure of the actual sale price in advertisements and initial written communications. Dealers must inform buyers of full financing costs and lease terms and are barred from charging for add-ons that provide no benefit. Intense lobbying from automakers, dealers and consumer groups preceded the changes, and further legislative battles are expected amid high prices and federal opposition to California's zero-emission goals.

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