CaliforniaCalifornia Combating Auto Retail Scams (CARS) Act.
What it does
Existing law governs motor vehicle conditional sale contracts, as defined, and requires a seller, prior to the execution of a conditional sale contract, to make certain disclosures to the buyer, including a description and the price of each item sold if the contract includes a charge for the item, and the sum of all of those charges.
More detail
Existing law prohibits a dealer from selling specified used vehicles at retail to an individual for personal, family, or household use without offering the buyer a contract cancellation option agreement that allows the buyer to return the vehicle without cause. Existing law sets forth certain requirements for the contract cancellation option agreement, including prescribing the purchase price for the contract cancellation option and requiring specified disclosures.
This bill would enact the California Combating Auto Retail Scams (CARS) Act. The bill would define the terms "vehicle" and "used vehicle" for these purposes. The bill would make it a violation of the act for a dealer to make any misrepresentation regarding material information about specified matters relating to the vehicle sale, including the costs or terms of purchasing, financing, or leasing a vehicle, the availability of vehicles at a total price communicated by the dealer, and the remedy available if a dealer fails to sell or lease a vehicle at the total price, as defined. The bill would also make it a violation of the act for a dealer to fail to make certain disclosures clear and conspicuous, including specified information relating to the total price and any add-on products or services, and would exempt from that provision a used vehicle sold at an auction, as defined. The bill would make it a violation of the act for a dealer, in connection with the sale or financing of a vehicle, to charge for certain items, including an add-on product or service if the vehicle purchaser or lessee would not benefit from the add-on product or service. The bill would repeal the above-described contract cancellation option agreement requirement and would instead prohibit a dealer from selling or leasing specified used vehicles without providing the purchaser or lessee a 3-day right to cancel the purchase or lease, as provided. The bill would require a dealer to create and retain, for a period of 2 years from the date the record is created, all records necessary to demonstrate compliance with the act, including specified records.
The bill would make its provisions operative on October 1, 2026.
The bill would make related conforming changes.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Oct 6Chaptered by Secretary of State. Chapter 354, Statutes of 2025.Latest
- Oct 6Approved by the Governor Gavin Newsom.Became Law
- Sep 22Enrolled and presented to the Governor at 11 a.m.To Governor
- Sep 11Assembly amendments concurred in. (Ayes 30. Noes 8. Page 2894.) Ordered to engrossing and enrolling.Major
- Vote recorded Unfinished Business SB766 Allen et al. Concurrence. Result: pass.Upper
- Sep 10In Senate. Concurrence in Assembly amendments pending.
- Vote recorded SB 766 Allen Senate Third Reading By Bauer-Kahan. Result: pass.Lower
- Sep 10Read third time. Passed. (Ayes 76. Noes 1. Page 3169.) Ordered to the Senate.Passed Assembly
- Sep 5Ordered to third reading.Minor
- Sep 5Read third time and amended.Major
- Aug 29Ordered to third reading.Minor
- Aug 29Read third time and amended.Major
- Aug 18Read second time. Ordered to third reading.Minor
- Jul 17Read second time and amended. Ordered to second reading.Major
- Jul 16From committee: Do pass as amended. (Ayes 11. Noes 0.) (July 16).Major
- Vote recorded Do pass as amended. Result: pass.Lower
- Jul 14From committee with author's amendments. Read second time and amended. Re-referred to Com. on P. & C.P.Major
- Jul 2From committee: Do pass and re-refer to Com. on P. & C.P. (Ayes 9. Noes 1.) (July 1). Re-referred to Com. on P. & C.P.Minor
- Jul 2Coauthors revised.
- Jul 1
- Vote recorded Do pass and be re-referred to the Committee on [Privacy and Consumer Protection]. Result: pass.Lower
- Jun 26From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.Major
- Jun 13From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.Major
- Jun 11June 17 hearing postponed by committee.
- Jun 9Referred to Coms. on JUD. and P. & C.P.Minor
- Jun 3In Assembly. Read first time. Held at Desk.Minor
- Jun 2Read third time. Passed. (Ayes 27. Noes 9. Page 1377.) Ordered to the Assembly.Passed Senate
- Vote recorded 3rd Reading. Result: pass.Upper
- May 27Read second time. Ordered to third reading.Minor
- May 23Read second time and amended. Ordered to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- May 23From committee: Do pass as amended. (Ayes 5. Noes 1. Page 1212.) (May 23).Major
- May 20Set for hearing May 23.
- May 19May 19 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- May 9Set for hearing May 19.
- May 1Read second time and amended. Re-referred to Com. on APPR.Major
- Apr 30From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0. Page 943.) (April 29).Major
- Apr 29
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Apr 11Set for hearing April 29.
- Apr 10Read second time and amended. Re-referred to Com. on JUD.Major
- Apr 9From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 9. Noes 3. Page 711.) (April 8).Major
- Apr 8
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary]. Result: pass.Upper
- Mar 25Set for hearing April 8.
- Mar 12Referred to Coms. on TRANS., JUD., and APPR.Minor
- Feb 24Read first time.Minor
- Feb 24From printer. May be acted upon on or after March 24.
- Feb 21Introduced. To Com. on RLS. for assignment. To print.Introduced