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California bills · 2025-2026 Regular Session

California SB 766

California Combating Auto Retail Scams (CARS) Act.

  1. Introduced
  2. In committee
  3. Passed Senate
  4. Passed House
  5. To Governor
  6. Became law

Sponsors

Cosponsors (2)

Summary

Official abstract published by the California legislature· summary

Existing law governs motor vehicle conditional sale contracts, as defined, and requires a seller, prior to the execution of a conditional sale contract, to make certain disclosures to the buyer, including a description and the price of each item sold if the contract includes a charge for the item, and the sum of all of those charges. Existing law prohibits a dealer from selling specified used vehicles at retail to an individual for personal, family, or household use without offering the buyer a contract cancellation option agreement that allows the buyer to return the vehicle without cause. Existing law sets forth certain requirements for the contract cancellation option agreement, including prescribing the purchase price for the contract cancellation option and requiring specified disclosures. This bill would enact the California Combating Auto Retail Scams (CARS) Act. The bill would define the terms "vehicle" and "used vehicle" for these purposes. The bill would make it a violation of the act for a dealer to make any misrepresentation regarding material information about specified matters relating to the vehicle sale, including the costs or terms of purchasing, financing, or leasing a vehicle, the availability of vehicles at a total price communicated by the dealer, and the remedy available if a dealer fails to sell or lease a vehicle at the total price, as defined. The bill would also make it a violation of the act for a dealer to fail to make certain disclosures clear and conspicuous, including specified information relating to the total price and any add-on products or services, and would exempt from that provision a used vehicle sold at an auction, as defined. The bill would make it a violation of the act for a dealer, in connection with the sale or financing of a vehicle, to charge for certain items, including an add-on product or service if the vehicle purchaser or lessee would not benefit from the add-on product or service. The bill would repeal the above-described contract cancellation option agreement requirement and would instead prohibit a dealer from selling or leasing specified used vehicles without providing the purchaser or lessee a 3-day right to cancel the purchase or lease, as provided. The bill would require a dealer to create and retain, for a period of 2 years from the date the record is created, all records necessary to demonstrate compliance with the act, including specified records. The bill would make its provisions operative on October 1, 2026. The bill would make related conforming changes.

Text versions

Roll-call votes

State vote data last updated Oct 15, 2026, 8:06 AM.

DateVoteResultYour legislators
Sep 11, 2025
Senate		Unfinished Business SB766 Allen et al. ConcurrencepassSet your home in California to see
Sep 10, 2025
House		SB 766 Allen Senate Third Reading By Bauer-KahanpassSet your home in California to see
Jul 16, 2025
House		Do pass as amended.passSet your home in California to see
Jul 1, 2025
House		Do pass and be re-referred to the Committee on [Privacy and Consumer Protection]passSet your home in California to see
Jun 2, 2025
Senate		3rd ReadingpassSet your home in California to see
May 23, 2025
Senate		Do pass as amendedpassSet your home in California to see
May 19, 2025
Senate		Placed on suspense filepassSet your home in California to see
Apr 29, 2025
Senate		Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]passSet your home in California to see
Apr 8, 2025
Senate		Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary]passSet your home in California to see

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