New protection for used vehicle buyers in California

More safeguards are coming for used car buyers in California, starting Oct. 1, when a host of new first-in-the-nation consumer protections kick in.

The California Combating Auto Retail Scams Act will give people who buy a car for less than $50,000 a three-day grace period to turn it in for a full refund. In most cases, reimbursement must be paid within 48 hours.

Will Bradley from Lincoln in Placer County said he bought a used Subaru for about $10,000 in 2024, only to find its undercarriage completely rusted out. The dealership ghosted him, then cursed at him and said he was stuck because he bought it “as-is,” he recounted.

“Had I had this grace period, I would have had the opportunity to take this car back that was undrivably unsafe and rotting,” Bradley pointed out.

Bradley eventually got his money back after a long, drawn-out lawsuit. Now, dealers must take the used car back and can charge only a restocking fee of $200 to $600. Buyers can drive it up to 400 miles during the grace period.

Advice for Used Car Buyers

Consumers who buy used cars can take advantage of the new law by getting the car inspected as soon as they drive it off the lot. An auto technician can pull up any error codes. The vehicle identification number can also help tell you whether the vehicle has ever been totaled in a crash.

Rosemary Shahan, president of the group Consumers for Auto Reliability and Safety, said the number one thing to check for is an unrepaired safety recall defect.

“Because unfortunately, a lot of dealers are selling cars that have defects like bad brakes, catching on fire, loss of steering, stalling in traffic,” Shahan outlined.

The new law will require dealers to tell you the total price of the car up front, in advertising and in writing, so they cannot lure you onto the lot by lowballing you and then include unwanted add-ons once you are there. It will be illegal to offer worthless add-ons, such as lifetime oil changes for an electric vehicle.