Navigating the world of used car purchases in California can be a complex undertaking. Because California does not offer a cooling-off period, buyers must familiarize themselves with their seller’s warranty and return policy prior to purchasing a used car. Understanding the nuances of the California Car Buyer’s Bill of Rights, which is essentially California’s used car return law, can empower buyers to make more informed decisions and avoid potential hiccups.
The Buyer’s Bill of Rights and Its Impact on Transparency
The California Car Buyer’s Bill of Rights is a set of statewide protections that are designed to protect consumers who are purchasing new or used vehicles from licensed sellers in California. Enacted on July 1, 2006, this bill supports transparency between sellers and buyers and grants buyers certain rights, disclosures, and fairness in the car-buying process. Under this bill, the following mandates apply:
- Used car buyers must be offered a two-day contract cancellation option agreement.
- Used cars advertised as certified vehicles must meet specific requirements such as, but not limited to, the car having accurate mileage on the odometer and having a complete inspection report. It also cannot have been previously purchased as a lemon buyback.
Additionally, the bill mandates clear disclosure of financing terms and prohibits deceptive advertising practices across the board.
The California car buyer’s bill of rights promotes trust and confidence in the used car marketplace, which can often be complex and overwhelming to the average consumer. This bill empowers consumers by equipping them with important information and safeguards, enabling them to make more informed decisions when buying a used car.
The Old Law: California Contract Cancellation Option Agreements
Per the California Car Buyer’s Bill of Rights, someone who purchased a used car for under $40,000 must have been offered a two-day contract cancellation option agreement before signing their contract. Consumers had the legal right to purchase said agreement but were not required to. The buyer had two days to return the car and obtain a refund for any reason. California Contract Cancellation Option Agreement prices were typically priced as follows:
- $75 for a vehicle costing less than $5,000.
- $150 for a vehicle that costs $5,001–$10,000.
- $250 for a vehicle that costs $10,001–$30,000.
- One percent of the purchase price for a vehicle that costs between $30,001–$39,999.
These contract cancellation option agreements do not apply to motorcycles, private sales, or new cars or used cars priced above $40,000.
A New Solution
Under AB 1755, California used car buyers no longer have to pay for a contract cancellation option agreement. The CARS Act gives them a three-day cooling-off period in which to decide whether to return the car, and they don’t have to pay anything to the dealer to exercise this privilege.
Old vs. New Lemon Laws
The old system for dealing with used car contract cancellation required buyers to purchase a cancellation option agreement upfront for $75 to $250. This agreement applied for a two-day window following the purchase. The new lemon laws are a little different. The CARS Act provides a built-in three-day cooling-down period, requiring drivers to pay only a restocking fee if they decide to return their vehicles.
There are also some wider differences in how lemon laws work that you should be aware of. Since the passing of AB 1755, drivers have only one year from the warranty’s expiration and no later than six years from the vehicle’s original delivery date to file a claim. They used to have four years from the warranty’s expiration.
Owners must also provide written notice now demanding a refund or replacement and must complete a mediation process before filing a claim. You can speak with your lawyer about how to meet these requirements so you can move forward with your lemon law case.
Finally, automakers have to opt in to the new set of procedures regarding how lemon law cases are handled. Those that do not opt in will continue resolving claims under the traditional lemon laws.
While not technically a legislative change, there was also a California Supreme Court ruling in 2024 that impacted how lemon laws apply to used cars. The court ruled that a manufacturer’s new-vehicle warranty does not transfer when a car is resold used. As a result, the manufacturer is no longer required by the state to buy a car back if it turns out to be a lemon following a sale.
What if My New Car Is Defective?
If you recently purchased a used car that has persistent defects, you may want to consider filing a lemon claim. A lemon refers to a newly bought or leased vehicle with continuous substantial defects that reduce its safety, value, or drivability. Common issues can involve the brakes, transmission, or electrical systems.
If your vehicle has problems even after several warranty-covered repairs within 18 months or 18,000 miles of delivery, it may be considered a lemon. A California Lemon Law attorney can help you navigate the process.
Why Hire a Lemon Law Attorney?
In just one month of 2025, a total of 1.66 million used cars were sold in the United States. In March of that year, California had 3,771 used car dealerships that sold 481,127 used vehicles. Many of the recent-model used cars sold in the Golden State were still eligible for a refund or replacement under California lemon laws.
If you purchased a car that turned out to be defective due to issues covered by the factory warranty, you can hire a lemon law attorney to help you file a claim.
Most lemon law cases are settled outside of court, but that doesn’t mean you shouldn’t hire a lawyer to assist you with your claim. Your lawyer can handle all the details of your case, from filing paperwork and gathering evidence to negotiating a settlement with the used car dealership’s insurance company. Working with a lemon lawyer is the most effective way to make sure you get fully compensated for your defective vehicle.
FAQs
What Is the Return Policy on Used Cars in California?
In California, there is no authoritative return policy on used cars. Once a purchase contract is signed, it is difficult to reverse it. Dealerships/sellers have the liberty to offer their own return policies, but they are not mandated to do so by the state. Be sure to ask questions about your seller’s return policy prior to signing any contracts.
Is There a 30-day Warranty on Used Cars in California?
In California, there is no statewide 30-day warranty requirement for used car sales. It is up to individual dealerships/sellers to develop and offer their own limited warranties or guarantees on used cars. You should always take the time to carefully read and understand the warranty agreement before purchasing a vehicle.
Is There a Buyer’s Remorse Period for Cars in California?
There is no buyer’s remorse period for cars in California. Buyer’s remorse describes the change of heart buyers may feel after making an expensive purchase. California does not offer a grace period for buyer’s remorse after signing contracts, which includes car purchases. Once you’ve signed, the terms of the sales contract are legally binding, so it’s important to consider all your options and read the fine print before purchasing a car in California.
Is There a Cooling-Off Period When Buying a Used Car in California?
There is a cooling-off period when buying a used car in California. The CARS Act stipulates that buyers of used vehicles have a three-day period beginning when they signed their purchase contracts in which to return the vehicles for any reason. If you’re having trouble getting a used car dealership to honor this law, you may want to consult a lawyer regarding your legal options for holding them accountable.
The Importance of Legal Support
Understanding the nuances of car returns in California can be confusing. Because California dealerships are not required to have a return policy, it is up to their discretion to create their own. When shopping for a used car, it is important to read and understand the many different return policies they all offer, as no two are likely to be exactly the same.
Fortunately, used car buyers still have a few protections under the California Car Buyer’s Bill of Rights. This legislation offers certain protections that promote transparency, fairness, and cancellation option agreements in very select situations.
Contact a California Used Car Return Law Attorney Right Away
Given the intricacies of these laws and the potential hurdles in the used car market, it’s important to educate yourself as much as possible. By understanding your rights and the available options, you can make more informed decisions and avoid potential disputes after purchasing.
If you have questions or concerns about your rights as a consumer in the used car market, contact our office today for a consultation. Our experienced legal team at Lemon Law Pro is ready to guide and support you so that your rights as a consumer are protected throughout and after the purchasing process.
KIMBERLI ZAZZI
Founding Attorney
As lead counsel on over a 1,500 cases, Kimberli has the experience needed to help you obtain the results you deserve.
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