Can you return a used car in California?

Yes, since October 1, 2026. Buyers of used cars priced at $50,000 or less from a licensed dealer have three days to cancel for any reason, as long as the car hasn't been driven more than 400 miles and comes back in the same condition.

How much is the restocking fee to return a used car in California?

1.5% of the sale price, with a $200 minimum and a $600 maximum. If the car was driven more than 250 miles, the dealer can add $1 per mile over 250, up to $150. A $20,000 car costs $300 to return.

Does California's 3-day return law apply to private sales?

No. The law covers used cars bought or leased from licensed dealers. Private sales between individuals, new cars, motorcycles, fleet sales of five or more vehicles, and auction sales are not covered.

You can now return a used car in California within 3 days

A restocking fee, a 400-mile limit, and 48 hours for the dealer to pay you back. Here's how California's new return rule works.

Car buyers in Los Angeles and the rest of California can now back out of a used car purchase. Since October 1, anyone who buys or leases a used vehicle priced at $50,000 or less from a licensed dealer has three days to cancel the deal and return the car, for any reason, under the California Combating Auto Retail Scams (CARS) Act.

It isn't free. The dealer can keep a restocking fee of 1.5% of the sale price, with a minimum of $200 and a maximum of $600, according to the bill text. On a $20,000 car, that's $300. On anything under about $13,300, the $200 minimum kicks in, and on anything over $40,000, the fee tops out at $600.

Mileage adds to it. If the car has been driven more than 250 miles since the sale, the dealer can charge $1 for each mile over 250, up to $150. Put 300 miles on it and that's another $50. Past 400 miles, the right to cancel is gone. The most a buyer can owe is $750.

California used to require something much narrower. Dealers had to offer a two-day cancellation option on used cars under $40,000, but buyers had to pay for it separately at the time of sale, the USA Today Network reported.

How the 3 days are counted

The clock starts the calendar day after the contract is signed, and weekends count. If the third day lands on a day the dealership is closed, the window stretches to the next day it's open. It ends at close of business.

The buyer has to bring the car back in person during business hours, in the same condition it was delivered, aside from reasonable wear and tear and any problem the buyer didn't cause. Anything else the buyer received with the sale has to come back too. The dealer then has 48 hours to cancel the contract and refund the money, minus the fees. Delays caused by a bank or credit card company don't count against the dealer.

A trade-in comes back with its keys. If the dealer already sold it, the buyer gets whichever is highest: the value agreed on in the contract, what the dealer sold it for, or its fair market value.

Dealers have to hand buyers a separate form titled "3-Day Right to Cancel Used Car Purchase or Lease" that spells out the deadline and how the fee is figured.

New cars and motorcycles aren't covered, and the law doesn't apply to private sales between individuals. Fleet sales of five or more vehicles and auction sales are also exempt, according to the California DMV.

Ads have to show the real price

The law also changes how cars are advertised. Dealers now have to show a total price in ads for a specific car and in the first email, text, or document about it. That price has to include any dealer markup or other price adjustment, plus the cost of anything already installed on the vehicle.

Optional extras like warranties, GAP coverage, and theft protection must be labeled as optional, in writing, before the buyer signs. Dealers can't charge for products that provide no meaningful benefit. The DMV's example is an oil-change plan sold with an electric car. Dealers also have to keep records for two years showing they followed the rules.

State Sen. Ben Allen came up with the bill after shopping for a used car himself in 2024 without telling dealers he was a lawmaker, CalMatters reported. He ended up buying a 2021 Ford Mustang Mach-E.

"I was kind of shocked by the hustle and the extent to which prices were quoted online and that ended up not really being truthful," he said.

Gov. Gavin Newsom signed it on October 6, 2025. Lawmakers held off the start date until this October to give dealers time to change their paperwork, contracts, and signs.

Rosemary Shahan of Consumers for Auto Reliability and Safety, which pushed for the bill, called it "a huge deal." "It's historic. It's going to make cars more affordable," she told CalMatters.

"The bill certainly is a net positive in terms of more transparency about the total price and advertising," said Brian Maas, president of the California New Car Dealers Association, though he added that it "clearly imposed more responsibility on dealers."