Buying a Car in California in 2026: What the New CARS Act Means for You
Short answer: Since October 1, 2026, California's CARS Act (SB 766) requires dealers to be upfront about the price you'll actually pay, makes add-on products voluntary and clearly itemized, bans add-ons with no value to the buyer, and gives you three days to cancel a qualifying used-car purchase.
What is the CARS Act?
The California Combating Auto Retail Scams Act, or SB 766, was signed in October 2025 and took effect on October 1, 2026. It was passed after a federal court struck down the FTC's similar national rule, and it covers how dealers advertise, negotiate and sell vehicles.
What changes for car buyers?
- Clearer pricing. Dealers must disclose the offering price and the total amount you will pay, and can't misrepresent pricing or financing terms.
- Voluntary add-ons. Optional products must be disclosed and itemized, and a dealer must make clear that buying them is your choice.
- No "valueless" add-ons. The law prohibits add-on products that give the buyer no real benefit.
- Three-day right to cancel. For used vehicles priced at $50,000 or less, you can cancel within three days. A restocking fee may apply, and the dealer must handle any trade-in as the law requires.
- Records. Dealers must keep records proving compliance for two years.
How does Anderson Honda handle pricing?
Our advertised prices include our dealer documentation and electronic filing charges. The only amounts added on top are government fees such as sales tax, registration and license fees.
What does the three-day cancellation mean in practice?
If you buy a qualifying used vehicle from us, you have three days to change your mind. Ask our sales team for details on how to request a cancellation and any applicable restocking fee.
What should I ask any dealer?
- What is the total price including every dealer fee, and what is added by the government?
- Which add-ons are optional, and what does each cost?
- Can I cancel if I'm buying a used car, and under what terms?
- Can I get the pricing and add-ons in writing in the language we're negotiating?
Questions about a specific vehicle? Search our new inventory, browse pre-owned vehicles or contact us. Anderson Honda is in Palo Alto and serves Mountain View, Los Altos, Menlo Park and Stanford.
This article is general information, not legal advice. For questions about your own purchase, consult an attorney or the California DMV.
Frequently asked questions
When did the CARS Act take effect?
October 1, 2026.
Does the three-day cancellation apply to new cars?
The cancellation right covers used vehicles priced at $50,000 or less.
Are add-ons required to buy a car?
No. Add-ons are voluntary and must be disclosed as such.
