California dealers • Effective October 1, 2026
SB 766 — California's Combating Auto Retail Scams (CARS) Act — brings new requirements affecting vehicle pricing, add-ons, cancellation rights, communications and dealership records.
Educational information only. Not legal advice. Dealers should consult qualified counsel regarding their specific obligations.
Key changes under SB 766 that can affect your dealership.
Advertisements that reference a specific vehicle or financing terms, and the first written communication with a consumer about a vehicle or financing (such as an email, text or quote), must clearly and conspicuously disclose the total price.
Dealer takeaway:
Make sure pricing communicated to customers follows the new total-price requirements.
Optional add-on products must be clearly disclosed as optional and agreed to before signing. Dealers may not charge for add-ons that provide no meaningful benefit to the consumer. Common optional products include:
Dealer takeaway:
Document what was offered, what it costs and what the customer agreed to.
The CARS Act replaces the prior contract cancellation option rules. Qualifying used-vehicle buyers may have a three-day right to cancel, subject to statutory conditions — including a vehicle price limit, mileage limits, vehicle condition and other requirements. Not every purchase qualifies.
Read California DMV GuidanceSB 766 adds recordkeeping requirements for records related to covered transactions — such as advertisements, first written communications, pricing disclosures, add-on consents and cancellation-related documents.
2 YEARS
Certain SB 766 records must be retained for two years.
The law prohibits misrepresenting material information involving areas such as:
Dealer takeaway:
Consistency between advertising, communications and the final transaction matters.
Document the vehicle
Pricing and paperwork are only part of protecting a dealership. A timestamped vehicle condition record can help document what the vehicle looked like at a specific point in the transaction.
Delivery Inspection
Trade-In Inspection
SmartLot inspections are a dealership documentation tool, not a legal requirement of SB 766.
SmartLot Inspections — sample data shown.
From the first ad to long-term recordkeeping, keep your dealership process organized.
Before the sale
During the sale
At delivery
After the sale
One Workspace. Better Documentation.
Create timestamped visual condition records.
Keep important SmartLot-generated records organized by dealership and vehicle.
Work from actual dealership inventory when responding to customers.
Give your team quick access to current educational information and dealership guidance.
A quick checklist to help your team prepare.
This is an educational checklist and is not an exhaustive legal compliance checklist.
Get the latest information directly from the California DMV.
See how SmartLot can help your dealership document vehicles, organize information and give your team one place to work.
This information is provided for educational purposes only and is not legal advice.