What changes on October 1
The California Combating Auto Retail Scams (CARS) Act, Senate Bill 766, was approved on October 6, 2025. Its rules take effect on October 1, 2026.
Under the new law, a dealer may not sell or lease a used vehicle at retail for $50,000 or less without giving the buyer or lessee a three-day right to cancel. You can return the vehicle within that window and cancel the contract.
Limits to know about
- The right does not apply to a used vehicle priced over $50,000.
- It ends if the vehicle has been driven more than 400 miles since you signed.
- The dealer may charge a restocking fee, within limits set by the law.
- It does not replace other rights, such as lemon law or warranty claims, and it does not take them away.
How this relates to lemon law
The three-day right is about changing your mind right after a purchase. Lemon law is about a warranty defect the manufacturer or its repair shops can't fix. If a used car you bought develops a warranty problem later, the rules for used vehicles still apply; our used-car guide explains them.
This post is general information about California law as of the date above, not legal advice about your situation.