California’s New CARS Act: What It Means for You as a Valley Hi Customer
Starting October 1, 2026, a new California law called the CARS Act is changing the way every dealership in the state does business. At Valley Hi Auto Group, we see it as good news. It puts into law many of the things we already believe a car-buying experience should include: clear pricing, honest communication, and a few new protections that give you more confidence in your purchase.
What Is the CARS Act?
The CARS Act, short for the Combating Auto Retail Scams Act, is a new California law (Senate Bill 766) that takes effect October 1, 2026. It applies to every licensed dealership in the state selling or leasing cars, trucks, and SUVs to everyday buyers, which includes all four Valley Hi brands: Honda, Kia, Nissan, and Toyota. At its core, the law is about one thing: making sure customers know exactly what they’re agreeing to, with fewer surprises along the way.
A New 3-Day Right to Cancel on Used Vehicles
One of the biggest wins for customers is a brand-new cancellation right. If you buy or lease a used vehicle, you now have three calendar days after signing to change your mind, for any reason, as long as you haven’t driven it more than 400 miles.
Get the vehicle home, live with it a little, and know you have a window to reconsider if something doesn’t feel right.
Dealers are required to process a full refund within 48 hours of a cancellation request. No runaround, no waiting weeks.
If you traded in a vehicle, you get it back, or its fair value, whichever works out better for you.
Dealerships are required to post this right in plain sight and spell it out on the first page of your contract, so it’s never buried in fine print.
This right applies to used vehicles priced at $50,000 or less. A small, capped restocking fee and mileage charge may apply if you cancel, which the law limits so it never becomes a barrier to using this right.
Full Price Transparency, No Surprises
The CARS Act also changes how vehicles can be advertised. Dealers are now required to advertise the actual total price a customer will pay, not just the manufacturer’s suggested price, with dealer add-ons and markups built into that number up front. The only things that can be added afterward are taxes, government fees, and a documentation fee. That means the price you see is much closer to the price you’ll actually pay, before you ever sit down at the table.
No More Junk Fees
The law also cracks down on add-on products that don’t offer real value to the customer buying them, things like protection packages that don’t apply to your vehicle, or coverage that duplicates what your factory warranty already includes. Dealers can no longer charge for add-ons that don’t genuinely benefit the person paying for them. If you’re offered an add-on, it has to actually apply to you and your vehicle.
Clear Disclosures, However You Pay
Before the CARS Act, a lot of these disclosure requirements only applied if you financed your vehicle. Pay cash or sign a lease, and you didn’t always get the same level of detail. That gap closes under the new law. Whether you’re financing, leasing, or paying cash, you’re entitled to the same upfront disclosure of every add-on and option before you sign.
The law also requires something that sounds small but matters a lot: if you’re offered multiple payment options, like different loan terms, you have to be told that a lower monthly payment often means paying more in total over time. That’s information that helps you compare offers on your own terms instead of focusing on the smallest number on the page.
Real Accountability Behind It
None of this works without a way to enforce it, so the CARS Act builds in record-keeping and oversight. Dealers are required to keep documentation for at least two years covering advertised pricing, signed contracts, add-ons, cancellations, and any customer complaints. If a question ever comes up about your purchase, there’s a paper trail.
The law is enforceable through California’s Unfair Competition Law and the Consumers Legal Remedies Act, with the Attorney General, local district attorneys, and the DMV all able to step in. In practice, that means these aren’t just suggestions dealerships can quietly ignore, they’re requirements with real consequences behind them, which is exactly what gives the rest of this law its teeth.
What This Means for You at Valley Hi
Honestly, a lot of this already lines up with how we operate. Our Valley Hi Guarantee already gives qualifying pre-owned buyers an exchange window, a warranty, and battery coverage because we believe confidence shouldn’t end at the signature line. The CARS Act adds a formal, statewide layer of protection on top of that, clearer pricing, posted rights, consistent disclosures no matter how you pay, and fewer unnecessary add-ons, across all four of our brands.
For you, that means more information up front, more time to make sure a used vehicle is the right fit, a documented record of your transaction, and fewer surprises at every step, whether you’re shopping our Honda, Kia, Nissan, or Toyota lineup.
Common Questions
Does the 3-day cancellation right apply to new vehicles too?
The cancellation right specifically applies to used vehicles priced at $50,000 or less. Other parts of the law, like price transparency and the add-on rules, apply to new and used vehicles alike.
What happens if I drive the vehicle more than 400 miles?
The cancellation right ends once you’ve driven more than 400 miles, so it’s meant to cover a short trial period rather than extended use.
How will I know my rights when I’m at the dealership?
California law requires dealers to post this information clearly in sales areas and to include it on the first page of your purchase or lease contract, so it’s visible before and during your visit.
Does this change how Valley Hi treats customers?
Our approach to honest pricing and customer care doesn’t change. The CARS Act simply puts additional protections into law across the entire industry, on top of what we already offer through the Valley Hi Guarantee.
Do I get the same disclosures if I pay cash instead of financing?
Yes. Previously, some disclosure requirements only applied to financed purchases. Under the CARS Act, you get the same upfront information about add-ons and options whether you finance, lease, or pay cash.
What happens if a dealer doesn’t follow these rules?
The law is enforceable by the California Attorney General, local district attorneys, and the DMV, and dealers are required to keep records of pricing, contracts, and complaints for at least two years, so there’s accountability built into the process.
Questions About Your Purchase or the New Law?
Our team at any of our four dealerships is happy to walk you through what the CARS Act means for your next purchase.
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