New California laws will rewrite car-buying rules in 2026 |
Vehicles for sale are parked in a lot at a CarMax dealership on April 24, 2025 in San Diego, California.
California lawmakers made major changes to the state's car-buying rules this year, including a controversial rewrite of the state law that allows buyers to get their money back if they are sold a defective vehicle and a right to return a used vehicle within three days.
After an intense lobbying push this year from automobile companies, dealers and consumer groups, more legislative battles over California vehicle purchases could follow in 2026. Sky-high car prices show no signs of falling, and a Republican-led Congress and the Trump administration have sought to thwart Newsom's goal of having 100% of new cars sold in California be zero-emission by 2035.
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Sen. Ben Allen, a Democrat representing the El Segundo area, said he expects California's Democratic-controlled Legislature will likely push back against national Republicans' attack on California's vehicle policies in some form next year, though he said it wasn't yet clear how.
"We're very committed to this path, so stay tuned, but clean air is a priority for our state," said Allen, who chairs the Senate's Select Committee on Transitioning to a Zero-Emission Energy Future.
In the meantime, Gov. Gavin Newsom signed Allen's Senate Bill 766, creating a first-in-the-nation policy that allows a buyer to return a used vehicle for a full refund within three days if the purchase price was less than $50,000. Dealers can charge a restocking fee.
The law, which takes effect in October, also contains other protections for buyers intended to prevent them from getting suckered.
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Car dealers will have to tell a potential buyer -- including in advertisements and initial written communications -- the actual price of a vehicle instead of an unrealistic advertised price. Potential buyers will also have to be informed of the full financing costs and lease terms.
The law also........