Buying a used car in California just got a little less risky. As of October 1, 2026, the state’s new Combating Auto Retail Scams (CARS) Act gives buyers of certain used vehicles the right to cancel their purchase within three calendar days.
But this isn’t a blanket three-day return policy for every car.
Which cars qualify?
The protection applies to qualifying used vehicles purchased from licensed California dealers for $50,000 or less. Private-party sales aren’t covered.
If your purchase qualifies, you can cancel the deal without having to show that the car is defective.
There are a few catches
You can’t simply drive the car around for three days and return it whenever you want.
The cancellation comes with mileage and other conditions, and dealers can charge a reasonable restocking fee.
You’ll also need to return the vehicle within the required three-day period and follow the terms in your purchase agreement.
What happens when you return it?
If you meet the requirements, the dealer must process the cancellation and refund the applicable amounts from the purchase. A restocking fee may be deducted.
That’s why it’s important to read the cancellation agreement before leaving the dealership.
What California drivers should know
The new rule gives used-car shoppers an important safety net, but it doesn’t mean every car purchase can be undone within three days.
If you’re buying a used car in L.A., check whether the vehicle qualifies, read the cancellation terms, and keep track of your deadline.
For more information, California drivers can check the official guide to the new CARS Act.
