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Get your money back on that car after three days thanks to new Sacramento law

Dealers must show total price and buyers get a three-day return window

Portrait of Marcus Delgado
California Politics · September 24, 2026
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Get your money back on that car after three days thanks to new Sacramento law
Get your money back on that car after three days thanks to new Sacramento law

Buying a car in California has long been a headache for consumers who face high-pressure sales tactics and confusing terms. But Senate Bill 766 changes the landscape. The California Combating Auto Retail Scams Act takes effect October 1. It forces dealers to stop the games and show the total price clearly. This law aims to fix the broken system where unhelpful add-ons get tacked onto electric vehicles. It addresses the pain points that regular drivers deal with when walking into a showroom.

Under the new rules, dealers must clearly identify which features are optional and which are mandatory. They cannot charge you for something you never asked for. The bill stops the practice of charging for add-ons that do not help the consumer, such as free oil changes for electric vehicles. The legislation also requires dealers to clearly represent their terms for purchasing, financing or leasing a vehicle. Senator Ben Allen from Santa Monica authored this legislation. He says the bill will make the car buying experience more fair and transparent.

The most significant change is the right to cancel. This creates a mandatory three-day cooling-off period for used vehicles under $50,000. This is the first time in the nation a state has mandated a return policy for used cars. If you buy or lease a used car under 10,000 pounds, you can return it within three days. You get a full refund minus a restocking fee. This gives buyers time to spot issues that might not appear during a short test drive or showroom visit.

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Governor Gavin Newsom signed the bill into law last October. Consumer advocates like Rosemary Shahan from Consumers for Auto Reliability and Safety say this law reduces bait-and-switch tactics. She calls the return policy a game-changer. This legislation applies to both new and used cars and light-duty vehicles under 10,000 pounds.

First reported by The Press Democrat.

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