Know your rights. Shop with clarity.

Clear pricing and payment information

For covered vehicle sales and financing, dealers must clearly disclose the legally defined total price in specified advertisements and initial written communications. That price includes dealer price adjustments and items already installed, does not subtract rebates, and may exclude the taxes, fees and charges permitted by law. Ask for an itemized breakdown so you can understand the final amount payable.

During written negotiations about monthly payments for a purchase or lease, required disclosures include the total of scheduled payments and any assumed down payment or trade-in consideration. When comparing lower monthly payment options, dealers must disclose that lower payments often increase the total amount paid.

References: Civil Code §§ 1784.31(j), 1784.40–1784.41. Monthly payments, vehicle sale price, total scheduled payments and total due at signing are different figures.

Optional add-ons should be clear

When a dealer discusses an add-on in writing during negotiations, it must disclose that the add-on is not required to buy or lease the vehicle. The Act also prohibits charging for add-ons that do not benefit the customer, such as oil changes for an electric vehicle or a service contract that is void because of preexisting conditions. Ask what each product costs, what it covers and whether you want it.

References: Civil Code §§ 1784.41(b), 1784.42.

Three-day cancellation: qualifying used vehicles

For covered retail used vehicle purchases or leases priced at $50,000 or less, the dealer must provide a three-day right to cancel. You do not pay to obtain this right, but permitted restocking and mileage charges may apply when you use it.

• Timing: The period starts the calendar day after the agreement is executed and ends at close of business on the third calendar day. If the dealer is closed on that third day, it extends to the next day the dealer is open.
• Mileage: The right does not apply if you drive more than 400 miles after executing the agreement. Above 250 miles, an additional $1 per mile may be charged, up to $150.
• Return requirements: Personally return the vehicle during the dealer’s business hours within the deadline, along with required items and permitted fees. The vehicle must satisfy the law’s lien and condition requirements, allowing reasonable wear and tear and qualifying problems not caused by you.
• Restocking: A dealer may charge 1.5% of the vehicle sale price, with a $200 minimum and $600 maximum. Actual shipping costs may be retained instead, subject to the same cap, plus the permitted mileage charge.
• Refund: The dealer generally must cancel the contract and provide the refund, less lawful deductions, within 48 hours after cancellation is exercised. Special rules apply to unverified payments, financial-institution delays and trade-ins.

The dealer must provide a separate written disclosure explaining the cancellation deadline, return requirements and fee calculations. Keep it with your agreement.

References: Civil Code §§ 1784.31(g)–(i), 1784.43.

Check whether your transaction qualifies

The three-day right does not cover new vehicles, used vehicles above $50,000, motorcycles, private-party sales, or a purchase of your leased vehicle when you already possess it. Certain auctions and other transactions or vehicle types are also excluded. The Act contains specific definitions and exceptions; read the law and the selling or leasing dealer’s disclosures for your transaction.

Before you sign

Request the vehicle price, taxes and fees, any optional products, financing or lease terms, and the complete amount due at signing in writing. Review the dealer’s cancellation disclosure if eligible. Keep copies of the advertisement, quote, messages and signed documents.

Aloo Motors can help you ask questions about a proposed vehicle offer. Cancellation rights under this Act are exercised with the selling or leasing dealer; this page does not replace the required dealer disclosures.