Can you return a new car in California?

Not just because you changed your mind. California has no cooling-off period for new vehicles, and dealers must say so on the contract. The 3-day right to cancel covers only used cars priced at $50,000 or less. A dealer can offer its own return policy in writing.

What is the lemon law presumption in California?

Within 18 months or 18,000 miles, a new car is presumed a lemon if a serious safety defect was repaired two or more times, the same problem was repaired four or more times, or it was out of service more than 30 days.

What happens if my car financing falls through in California?

If the sale depended on financing you arranged and the loan isn't approved, state law treats the contract as rescinded and both sides return what they received. If a dealer doesn't return a trade-in, you can recover its fair market value or contract value.

Why you can't return a new car in California, and what you can do instead

Dealers now have to tell you in writing: there's no cooling-off period for new cars. Here's what protects you instead.

No, you can't return a new car in California just because you changed your mind. Since October 1, dealers have had to say so in writing. Under the CARS Act, every sales contract must include this notice: "CALIFORNIA DOES NOT HAVE A COOLING-OFF PERIOD FOR NEW VEHICLES. HOWEVER, IF YOU PURCHASED OR LEASED A USED VEHICLE FOR $50,000 OR LESS, YOU HAVE 3 DAYS TO CANCEL THIS CONTRACT FOR ANY REASON." Dealers also have to post the same message on a sign in their sales offices.

The 3-day return right for used cars runs three calendar days, starting the day after the deal is signed, and ends if the car has been driven more than 400 miles. Dealers can charge a restocking fee of 1.5% of the price, between $200 and $600. A DMV memo to dealers describes the window as three business days, but the law itself says calendar days.

The federal rule many people have heard of doesn't help either. The Federal Trade Commission's Cooling-Off Rule doesn't cover purchases made at a seller's permanent place of business, like a dealership, and it specifically excludes cars sold at temporary locations when the seller also has a permanent one, according to the FTC.

A dealer can choose to offer more. The CARS Act says nothing stops a dealer from offering a right to cancel on more vehicles or for a longer period. If a dealer promises you a return window on a new car, get it in writing before you sign.

If the new car turns out to have serious problems, California's lemon law is the main protection. It applies to new vehicles sold or leased in the state, and the manufacturer, not the dealership, is responsible for buying back or replacing the car, the state's Department of Consumer Affairs says. Under state law, a car is presumed to be a lemon if, within 18 months of delivery or 18,000 miles, whichever comes first, a defect that could cause death or serious injury has been repaired two or more times, the same problem has been repaired four or more times, or the car has been out of service for repairs more than 30 days. You get to choose a refund instead of a replacement, according to the state attorney general.

Filing for arbitration through a manufacturer's state-certified program costs the consumer nothing. And since 2025, some automakers have opted into faster lemon law procedures that require them to offer a refund or replacement within 30 days of a customer's notice and finish it within 60 days. The list includes Ford, General Motors, Hyundai, Kia, Nissan, Subaru, Mercedes-Benz, and FCA US. "The result is that California car buyers have different legal protections under the state's lemon law depending on which brand they buy," CalMatters reported.

There's also a way out if your financing collapses. When a sale depends on financing that the buyer arranges and the loan doesn't come through, state law treats the contract as rescinded, and both sides have to return what they received. If a dealer doesn't return a trade-in, the buyer can recover its fair market value or the value stated in the contract, under the state's car financing law.

The CARS Act's other rules cover new cars, too. Dealers have to show a total price in any ad for a specific vehicle, tell buyers at least once that add-ons aren't required, and can't charge for worthless add-ons like oil changes for an electric car. They can't misrepresent whether they'll keep your down payment or trade-in if a deal falls apart, and any waiver of these protections you might sign is void. Buyers also keep any right to cancel a sale under other laws, such as for fraud.

Drivers in Los Angeles, San Diego, San Francisco, and the rest of the state can check the opt-in automaker list and learn about state-certified arbitration programs through the Department of Consumer Affairs' Arbitration Certification Program.