New California law targets car sales amid sky-high vehicle costs: ‘Shoppers have been mistreated and duped’
California drivers are getting a little more protection at the dealership — but they’re still getting hammered everywhere else.
A new law taking effect Oct. 1 will force California car dealers to be more upfront about vehicle prices and give some buyers a 48-hour window to return their rides for a full refund.
But for Californians already getting crushed by the cost of owning and operating a car, the new rules do little to ease the bigger pain at the pump, the tire shop and beyond.
Senate Bill 766, signed into law by Gov. Gavin Newsom on Wednesday, is known as the California CARS Act and aims to crack down on misleading dealership practices.
The bill was originally introduced by state Sen. Ben Allen, who represents the Santa Monica area of Los Angeles County.
Allen said the law is expected to make things right for car shoppers.
“For years, car shoppers have been mistreated and duped into purchasing unsafe vehicles or vehicles with add-ons and features they didn’t know about, saddling them with unnecessary debt and risking their lives on the road,” Allen told NBC Bay Area. “These practices will finally come to an end in California.”
Under the law, dealers will have to clearly disclose the price of a vehicle in advertisements, excluding taxes and certain fees.
Dealerships will also have to provide a full refund for vehicles priced at $50,000 or less if buyers return them within 48 hours of purchase.
That said, dealers will be allowed to charge restocking fees, and the car can’t have more than 400 additional miles on it before it’s returned.
The new rules also prohibit dealers from misleading customers about financing terms, whether a vehicle is actually in stock or whether add-ons and services are necessary.
That includes products such as warranties and tire protection plans.
But even a more transparent sticker price won’t solve California’s much bigger driving-cost problem.
The Golden State is already dealing with some of the nation’s most painful gas prices, with regular unleaded averaging $6.39 a gallon Tuesday — just pennies below the state’s record high.
And drivers aren’t only getting squeezed at the pump.
In August, Newsom approved a law that will phase out replacement tires that don’t meet California’s new energy-efficiency standards.
The regulations are expected to affect roughly 70% of replacement tires currently on the market, potentially forcing Californians to have to spend more for compliant rubber.
Newsom has defended the rules by arguing that lower-resistance tires will improve mileage and ultimately save drivers money.
“The ROI is pretty good,” Newsom said, referring to Democrats’ arguments that the rules, which mandate lower-resistance tires, will translate to cars using less gas or electricity through better mileage.