What does the CARS Act Do?

the CARS Act, slated to take effect on October 1, 2026, directly addresses long-standing complaints about unscrupulous practices in the used car industry. It specifically prohibits dealers from tacking on fees for unrelated services or products, such as unnecessary oil changes for electric vehicles or bogus anti-theft engravings on cars that lack catalytic converters. These inflated costs have historically added hundreds, even thousands, of dollars to the final price of a vehicle.

Beyond eliminating hidden fees, the legislation introduces a three-day right of return for used vehicles priced at $50,000 or less. This allows buyers to return the car within 72 hours or 400 miles (approximately 644 kilometers), whichever comes first, provided the vehicle is returned in the same condition. Dealers are permitted to charge a maximum fee of 1.5% of the vehicle’s price, capped at $600, to cover any costs associated with the return.

A Table Summarizing the Key Provisions

Provision Details
Hidden Fees Prohibited for unrelated services/products.
Right of Return 3 days / 400 miles for vehicles under $50,000.
Return Fee Maximum 1.5% of price, capped at $600.
effective Date October 1, 2026

Did You Know? According to a 2023 Federal Trade Commission report, deceptive practices in auto sales cost consumers billions of dollars annually.

Experts anticipate that the CARS Act will significantly boost consumer confidence in the used car market. by promoting transparency and offering a safety net for buyers, the act aims to curb abusive practices and create a more predictable and trustworthy purchasing experience. Manny believe this overhaul will lead to more straightforward negotiations at dealerships and clearer, more easily understandable offers.

Pro Tip: Always carefully review the itemized list of all costs before signing any purchase agreement for a used vehicle. Don’t hesitate to ask questions about any charges you don’t understand.