§ 1784.40. — 1784.40. (Added by Stats. 2025, Ch. 354, Sec. 1.)

California § 1784.40.

• Jurisdiction: California
• Code CIV: Civil Code - CIV
• Div. 3.: DIVISION 3. OBLIGATIONS
• Title: 1.5B.
• Part 4.: TITLE 1.5B. California Combating Auto Retail Scams (CARS) Act
• Ch. 3.: CHAPTER 3. Prohibited Conduct and Consumer Rights

Text

It is a violation of this title for any dealer to make any misrepresentation regarding material information about any of the following:
(a)
The costs or terms of purchasing, financing, or leasing a vehicle.
(b)
Any costs, limitation, benefit, or any other aspect of an add-on product or service.
(c)
Whether the final contract is for the lease or sale of a motor vehicle. This subdivision shall not be construed to restrict the ability of a dealer to present multiple financing and lease payment options to the customer prior to the sale or lease of a motor vehicle.
(d)
The availability of vehicles at a total price communicated by the dealer. A dealer is not in violation of this subdivision if the advertisement in question is withdrawn following the sale of the vehicle in compliance with subdivision (c) of Section 11713 of the Vehicle Code.
(e)
Whether any consumer has been or will be preapproved or guaranteed for any product, service, or term.
(f)
Information on or about a consumer’s application for financing.
(g)
Whether the dealer will keep cash downpayments or trade-in vehicles, charge fees, or initiate legal process, or any action if a transaction is not finalized or if the consumer does not go forward with the
transaction.
(h)
Whether, and if so, when, a dealer will pay off some or all of the financing or a lease on a consumer’s trade-in vehicle, and what happens if a dealer fails to pay off the trade-in vehicle within the time period required by Section 11709.4 of the Vehicle Code.
(i)
The remedy available if a dealer fails to sell or lease a vehicle at the total price.
(j)
Whether the dealer or any of the dealer’s personnel or products or services is or was affiliated with, endorsed or approved by, or otherwise associated with the United States government or any federal, state, or local governmental agency, unit, or department, including the United States Department of Defense or its military departments.
(k)
Whether, or under what circumstances, a vehicle may be repossessed.
(
l
)
Whether a vehicle can be moved outside of California or outside of the United States.
(m)
Any of the required disclosures identified in this title.

Legislative History

Added by Stats. 2025, Ch. 354, Sec. 1. (SB 766) Effective January 1, 2026. Operative October 1, 2026, pursuant to Section 1784.28.