At a glance
- Bill
- SB 766
- Signed
- October 6, 2025
- In force
- October 1, 2026
- Records
- 2 years
On this page
The key facts
| What | The fact |
|---|---|
| Name | California CARS Act, SB 766 |
| Signed | October 6, 2025 |
| Took effect | October 1, 2026 |
| Used car cancellation right | 3 business days, on used cars priced at $50,000 or less |
| Records | Keep compliance records for 2 years |
Everything else is in the DMV notice
The Act does more than the facts above. We haven't been able to read the final bill text ourselves, so we don't summarize its other requirements here. For the details, including the conditions on the cancellation right, read the California DMV's industry notice on SB 766 and ask your attorney or your dealer association.
It is not the FTC CARS Rule
The California CARS Act is a state law. The FTC's federal CARS Rule is a different thing, and it is gone: vacated on January 27, 2025 and removed on February 12, 2026. What happened to the FTC CARS Rule.
The California module in CarShots Compliance
The Plus plan ($199 per store a month) includes a California CARS Act module for California dealers. It tracks the deadlines above, keeps your records for the 2 years and points you to the DMV notice for each requirement.
Rules checked and limits
Rules checked October 31, 2026. We read every rule on this page in the eCFR or on the agency's own site, and each is linked in the sources below. We re-check them every quarter.
This guide covers California only.
Templates and tools, not legal advice. CarShots is software, not a law firm. For a question about your own dealership, ask your attorney or your state dealer association.