California’s New CARS Act (SB 766): What It Means for Car Buyers — And How LemonDaddy Protects You

California’s New CARS Act (SB 766): What It Means for Car Buyers And How LemonDaddy Protects You California just enacted one of the strongest consumer-protection laws in the nation: SB 766, the Combating Auto Retail Scams (CARS) Act, scheduled to take effect October 1, 2026. If you’re thinking about buying a used car or you’ve recently purchased one that’s turning into a nightmare this law fundamentally changes your rights. As a consumer-rights law firm serving Californians who were sold defective vehicles, LemonDaddy is breaking down what the CARS Act actually does, how it protects you, and what to do if your car is already giving you problems.

What Is the CARS Act (SB 766)?

The CARS Act is California’s answer to misleading auto-dealer tactics, hidden fees, and shady used-car practices. It gives car buyers more transparency, more power, and for the first time, a three-day right to return certain used vehicles.

Key protections include:

✔️ Mandatory “All-In” Pricing
Dealers must advertise and display the true total price — no hidden add-ons, no surprise fees at signing, and no bait-and-switch pricing.
✔️ A Real 3-Day Right to Cancel (Used Cars ≤ $50,000)
Buyers get up to three days to return a used car priced at $50,000 or less.
This is a major shift in California law and a huge win for consumers.
✔️ Limits on Dealer Add-Ons
Dealers can no longer push worthless or deceptive products — especially ones that provide no benefit (e.g., selling “oil-change packages” for an electric vehicle).
✔️ Stronger Enforcement & Record-Keeping Requirements
Dealers must maintain compliance records for two years, meaning more accountability and less room for abuse.

What the 3-Day Return Right Really Means

Not every car qualifies — and dealers are going to try to exploit the fine print.
Here’s how the rule actually works:
Eligible:
Used vehicles priced $50,000 or less
Returned within 3 business days
Driven less than 400 miles after purchase
Returned in essentially the same condition
Not Eligible:
New vehicles
Used vehicles priced over $50,000
Motorcycles, RVs, commercial trucks, etc.
What dealers may still charge:
Reasonable restocking fees
Excess mileage charges
Damage deductions
Bottom line:
This is a strong protection — but it is not a replacement for California’s Lemon Law.
If your vehicle has mechanical problems after those three days, you still need legal help.

Does the CARS Act Replace the Lemon Law?

  • No.
  • The CARS Act gives you a brief window to undo a bad purchase — but it does not force a dealer or manufacturer to repurchase or replace your car once the window closes.
  • California’s Lemon Law (Song-Beverly Consumer Warranty Act) remains the primary protection when:
  • Your car has been in the shop multiple times
  • Repairs drag on for 30+ days
  • Safety defects keep coming back
  • The dealer refuses to fix recurring issues
  • A manufacturer refuses to buy the car back
  • If your car suffers repeated defects, you still need a lemon law attorney — and LemonDaddy handles those cases at no cost to the consumer.

What If My Car Is Already a Lemon?

If you are experiencing any of the following, call LemonDaddy immediately:

  • Engine misfires
  • Transmission slipping or jerking
  • Electrical or hybrid-system failure
  • Steering issues
  • Brake malfunctions
  • “Check engine” light coming back after repairs
  • Your car has been out of service for 30+ days
  • Dealer keeps telling you “it’s normal”
  • You may be entitled to a full repurchase, including:
  • Your down payment
  • Monthly payments
  • Taxes & registration
  • Incidental costs (towing, rental cars, etc.)
  • And the manufacturer pays your attorney’s fees — not you.

How LemonDaddy Helps You

LemonDaddy isn’t just another law firm — it’s a specialized consumer-protection team dedicated to helping Californians stuck with defective vehicles.

  • What we do:
  • Free case evaluation
  • No-cost representation
  • Immediate pressure on the manufacturer
  • Fast negotiation for buyback or cash settlement
  • Thorough review of repair orders and dealer violations
  • What you get:
  • Your money back
  • Your defective car gone
  • Peace of mind
  • Zero out-of-pocket cost

When to Call LemonDaddy

  • If your vehicle has been in the shop twice for major issues, four times for anything, or 30+ days total, call us.
  • If you bought a car in the last 3 days and want to return it — call us.
  • If you think the dealer lied — call us.
  • If the manufacturer is stalling — call us.
  • If something “just doesn’t feel right” — call us.

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