Buying a used car can feel like a gamble, but it shouldn’t have to. You’re spending good money on a piece of equipment that should live up to the expectations set for you by the car dealership. Thankfully, there are California car dealership laws for used cars. They safeguard consumers against fraud and other serious issues.
While used cars are not generally covered by California’s lemon laws, that doesn’t leave consumers completely unprotected. There are several ways Lemon Law Pro could hold a dealership accountable if they knowingly sold you a defective used vehicle.
Your Rights Under the Car Buyer’s Bill of Rights
The Car Buyer’s Bill of Rights is designed to protect consumers who purchase either new or used vehicles from any of the state’s 3,771 used car dealerships. It supports transparency on the part of sellers and grants certain rights to vehicle buyers, which makes sure the car-buying process is fair. Stipulations of the Car Buyer’s Bill of Rights include:
- Regulation of CPO vehicles: There are requirements for used cars advertised as certified pre-owned (CPO) vehicles, including having accurate mileage on the odometer and a complete inspection report available to the buyer. California laws also prohibit CPO vehicles from having been previously purchased as lemon buybacks.
- Clear disclosure of financing terms: Dealerships must clearly disclose the terms of any financing agreement they offer to buyers. This helps prevent deceptive advertising practices.
- Consumer credit score disclosure: Dealers are also required to provide written notice to any applicant seeking financing regarding the credit score obtained and used by the dealership.
- Fee caps: Dealers obtaining financing on behalf of buyers must limit their compensation to 2% of the purchase amount for contracts with terms of more than 60 months or 2.5% for contracts with terms of less than 60 months.
The Car Buyer’s Bill of Rights also stipulates that consumers who purchase used cars worth less than $40,000 be offered a two-day contract cancellation option. However, this is superseded by the CARS rule.
How the CARS Act Changes the Used Car Economy
The Combating Auto Retail Scams (CARS) Act takes effect in October 2026. It requires complete price disclosures in ads, stops the sale of useless add-ons and, most crucially, adds a three-day cooling-off period for used cars. This cooling-off period applies to any used vehicle with a purchase price of less than $50,000. To be eligible to bring your car back to the dealership, you must have put less than 400 miles on it before bringing it in.
Civil Claims Against Used Car Dealers
You can pursue a civil claim against a used car dealer only in certain circumstances. They include:
- Dealer fraud
- Hidden prior accidents
- Odometer rollbacks
Several key statutes could impact your claim. They include:
- Consumer Legal Remedies Act (CLRA): The CLRA is codified under Civil Code 1770. It prohibits dealerships from misrepresenting vehicles’ condition, accident history, or title status.
- Unfair Competition Law: This law is codified under BPC Code 17200. It targets deceptive practices, such as hidden fees and the switching of financing terms, and it can be applied to used car dealerships.
- California Vehicle Code 11713.18: This statute makes it illegal for dealers to sell used vehicles as certified if the:
- Odometer has been altered.
- Frame is damaged.
- Vehicle is under a salvage or flood title
- Dealer fails to provide a comprehensive pre-sale inspection report.
If any of these situations apply, you can hire an attorney to uncover the most effective path forward. While lemon laws don’t apply to used cars, there are legal remedies you can pursue to hold unscrupulous used car dealerships responsible for their actions in the Golden State.
FAQs
Can You Return a Used Car If It Has Problems in California?
You can return a used car if it has problems in California only under very specific circumstances. The used car must be a certified pre-owned vehicle that is still under the original manufacturer’s warranty, and the issue must be a substantial defect that impacts the use, value, or safety of the car that is covered under that warranty.
What Should You Do If a Dealer Sells You a Bad Used Car?
What you should do if a dealer sells you a bad used car depends on the circumstances. If your car is eligible for a buyback under lemon laws, your next step is to contact a California lemon law attorney to represent your claim. Even if it’s not, you should consult an attorney, as you may be protected by a warranty or dealer fraud laws under California’s Car Buyer’s Bill of Rights.
Can a Dealership Take a Car Back After You Signed the Contract in California?
A dealership can take a car back after you have signed the contract in California if you bring a used car back within three days. This cooling-off period is required under the recently passed CARS Act. It applies to used vehicles with a purchase price under $50,000 that have been driven less than 400 miles before buyers bring them back. There is no cooling-off period for new cars in California. Once you sign the contract, the sale is final.
Who Regulates Used Car Dealers in California?
The agency that regulates used car dealers in California is the Occupational Licensing (OL) division of the California Department of Motor Vehicles (DMV). The DMV enforces strict dealer laws, including the Car Buyer’s Bill of Rights. However, the California Department of Justice handles consumer fraud complaints, and the California Bureau of Automotive Repair (BAR) investigates mechanical disputes. The New Motor Vehicle Board (NMVB) runs mediation services for consumer issues.
Hire a Lemon Law Attorney Today
If you’ve been sold a lemon vehicle, it’s time to hire a lemon law attorney. The team here at Lemon Law Pro has years of experience in handling all sorts of lemon law cases. In fact, we focus our practice exclusively on helping clients resolve disputes involving defective vehicles. You can trust us to bring the full weight of our knowledge, skill, and experience to bear in your lemon law case at no cost to you. Contact us to schedule a free consultation today.
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