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Published on Oct 29, 2025 at 8:44 AM (UTC+4)
by Molly Davidson
Last updated on Oct 29, 2025 at 10:09 AM (UTC+4)
Edited by Kate Bain
California’s about to flip the script on the car-buying process.
A brand-new state law called the CARS Act has just been signed, and it’s set to upend every dusty sales tactic dealers rely on.
It doesn’t kick in just yet, but when it does the handshake-and-hustle era could be over.
For shoppers, that means more transparency, and for dealerships, a mountain of new rules to climb.
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Governor Gavin Newsom inked the Combating Auto Retail Scams (CARS) Act on October 6, 2025.
It makes California the first state to legally force car dealers to show their cards.
And it comes with a long list of new requirements.
For starters, every vehicle advertised must now display a total price up front – transport fees, accessories, everything included. 
No more mystery costs buried in the fine print.
The same law also gives used-car buyers a three-day window to return any vehicle under $50,000, as long as it’s been driven fewer than 400 miles. 
Dealers can still charge a restocking fee between $200 and $600, or up to 1.5 percent of the sale price, but nothing beyond that.
Then there’s the ban on useless add-ons. 
Think oil changes for EVs or fake nitrogen-filled tires. 
Dealers now have to prove every extra they sell actually benefits the buyer.
And they’re required to keep compliance records for two years to show it.
Together, these measures form one of the most detailed consumer-protection frameworks in the US auto industry.
Buyers receive more information up front, and dealerships must follow new documentation and disclosure requirements at every stage of a sale.
The CARS Act becomes enforceable on October 1, 2026.
By then, every California dealership will need to update how it markets, prices, and records each sale.
Covering everything from disclosures to add-ons to cancellation rights.
It doesn’t just tweak paperwork – it rewrites the playbook.
When October rolls around, car lots will be running on new rules, new expectations, and a lot less small print.
For once, walking out with the keys might actually feel as simple as it looks in the commercials.
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# Tags – Car News, Cars, CARS Act, Drivers
Molly Davidson is a Junior Content Writer at Supercar Blondie. Based in Melbourne, she holds a double Bachelor’s degree in Arts/Law from Swinburne University and a Master’s of Writing and Publishing from RMIT. Molly has contributed to a range of magazines and journals, developing a strong interest in lifestyle and car news content. When she’s not writing, she’s spending quality time with her rescue English staffy, Boof.
Supercar Blondie finds and covers the coolest cars, tech, luxury and gaming in the world.
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