Buying a Car in 2026? How California’s New CARS Act Affects Your Registration and Plates

Last Updated: December 2025

If you’re planning to buy a car in California in 2026, there are some important new consumer protection laws you need to know about before you head to the dealership. The California Combating Auto Retail Scams (CARS) Act, which takes effect October 1, 2026, introduces significant changes to how cars are sold and registered in California—especially for used vehicle buyers.

At Quick Auto Tags, we help hundreds of Californians navigate DMV registration requirements every week. In this guide, we’ll break down exactly what these new 2026 laws mean for your vehicle registration, what documents you’ll need, and how to avoid delays or penalties when getting your tags and plates.

What Is the California CARS Act?

The California CARS Act is a new consumer protection law signed by Governor Gavin Newsom in October 2025. Starting October 1, 2026, it gives California car buyers unprecedented rights and protections when purchasing vehicles from dealerships.

This landmark legislation makes California the first state in the nation to provide a three-day cooling-off period for used car purchases, while also requiring dealers to be completely transparent about pricing and optional add-ons.

The Three Key Changes Under the CARS Act

1. Three-Day Right to Return (Used Vehicles Only)

The most talked-about provision of the CARS Act is the three-day cooling-off period for used vehicle purchases. Here’s how it works:

• You have 72 hours from the time of purchase to return a used vehicle for a refund
• This applies to cars purchased from licensed California dealers
• The cooling-off period applies to used vehicles only—new car purchases are not covered
• You can cancel the purchase contract and receive a full refund within this window

Important Note: This three-day window does NOT apply to new vehicle purchases. If you buy a new car, the sale is final once you sign the paperwork.

2. Total Price Disclosure Requirement

Dealers must now clearly disclose the “Total Price” of any vehicle in:

• All advertisements that reference a specific vehicle
• The first communication with a potential buyer

The Total Price includes the complete sale price of the vehicle, excluding only taxes, DMV fees, and certain government-mandated charges. This means no more surprise fees when you sit down to finalize the paperwork.

3. Optional Add-On Transparency

Dealers are required to disclose “clearly and conspicuously” that:

• Any optional add-on product is not required to purchase the vehicle
• You can buy or lease the vehicle without purchasing add-ons
• Add-ons like extended warranties, paint protection, or gap insurance are purely optional

Additionally, dealers are now prohibited from charging for add-on products that provide no benefit to the buyer, such as:

• Nitrogen-filled tire products containing less than 95% nitrogen purity
• Oil changes for electric vehicles
• Other services that are functionally useless for your specific vehicle

How the CARS Act Affects Your DMV Registration Timing

The three-day cooling-off period for used vehicles creates an important consideration for registration timing. Here’s what you need to know:

When Does the Sale Become “Final”?

For used vehicle purchases under the new law:

• The sale becomes final after the three-day return window expires
• This means day four after your purchase is when the sale is legally complete
• Until then, you technically have the option to return the vehicle

When Should You Start the Registration Process?

For Used Vehicles: If you purchase a used vehicle on October 1, 2026 or later:

• Wait until after the three-day cooling-off period expires before starting registration
• This prevents complications if you decide to exercise your right to return
• On day four, you can confidently begin the registration process
• California law still requires registration within 10 days of purchase, so you have time

For New Vehicles: If you purchase a new vehicle:

• The sale is final immediately upon signing
• You can begin the registration process right away
• The standard 10-day registration deadline applies from your purchase date

Temporary Registration Documents

California dealers are required to provide you with a temporary operating permit when you purchase a vehicle. Under the CARS Act:

• Make sure your temporary permit extends beyond the three-day return window for used vehicles
• Verify the expiration date before leaving the dealership
• If you’re planning to use a registration service like Quick Auto Tags, coordinate timing accordingly

Documents You’ll Need for Registration Under the New Law

Whether you buy a new or used vehicle in 2026, you’ll need specific documents to complete your California DMV registration. Here’s your checklist:

Essential Registration Documents:

1. Vehicle Title – The dealer should provide this; it must be properly signed over to you
2. California Certificate of Title or Out-of-State Title – If applicable
3. Proof of Insurance – Must meet California’s minimum liability requirements
4. Smog Certification – Required for used vehicles (new vehicles are exempt)
5. Bill of Sale – Should include the Total Price disclosure as required by the CARS Act
6. REG 343 (Application for Title or Registration)
7. Valid California Driver’s License or ID
8. Payment for Registration Fees – Includes registration, license plate fees, and vehicle license fee

Additional Documents for Out-of-State Purchases:

• VIN verification (usually Form REG 31)
• Out-of-state title properly signed over
• Proof of California residency
• Smog certification (unless vehicle is exempt)

How Quick Auto Tags Handles Your 2026 Registration

Under the new CARS Act regulations, proper timing and documentation are more important than ever. That’s where Quick Auto Tags comes in.

Our Process for 2026 Vehicle Registrations:

For Used Vehicle Purchases:

1. We advise waiting until after your three-day return window expires
2. Once the sale is final (day four), contact us with your documents
3. We handle all DMV paperwork, ensuring compliance with new disclosure requirements
4. We process your registration and arrange for plate delivery
5. Typical processing: 3-5 business days

For New Vehicle Purchases:

1. Contact us immediately after purchase
2. We verify all dealer paperwork meets CARS Act requirements
3. We submit your registration application to the DMV
4. We keep you updated throughout the process
5. You receive your plates without ever visiting the DMV

Why Use Quick Auto Tags After Buying Under the New Law?

Avoid Late Penalties: California requires registration within 10 days of purchase. After the three-day return window for used cars, that gives you just seven days to complete registration. We ensure you meet this deadline.

Prevent Errors: The CARS Act introduces new documentation requirements. We verify everything is compliant before submission, preventing delays or rejections.

Save Time: No DMV appointments, no waiting in line, no hassle. We handle everything from start to finish.

Expert Guidance: Confused about when your purchase becomes final? Unsure if your dealer complied with disclosure requirements? We can help answer your questions.

Frequently Asked Questions About the 2026 CARS Act

When is my used car purchase officially “final” under the new law?

Your used car purchase becomes final after the three-day cooling-off period expires. If you purchase a used vehicle on October 1, 2026, the sale becomes final on October 4, 2026 (day four). Until then, you have the right to return the vehicle for a refund.

Can I start registration before the three-day window expires?

Technically yes, but we don’t recommend it. If you exercise your right to return the vehicle within three days, any registration you’ve started will need to be canceled, potentially creating complications and delays. It’s best to wait until day four when the sale is definitively final.

Does the three-day return right apply to private party sales?

No. The three-day cooling-off period only applies to used vehicles purchased from licensed California dealers. Private party sales are not covered under the CARS Act.

What happens to my down payment if I return the car within three days?

Under the CARS Act, you’re entitled to a full refund if you return the vehicle within the three-day window. This should include your down payment. Keep detailed records of all payments made.

Will the new law delay when I can drive my car?

No. You receive temporary operating permits from the dealer that allow you to legally drive the vehicle while the permanent registration is being processed. These temporary permits should cover the three-day return window and beyond.

How does the CARS Act affect registration fees?

The CARS Act doesn’t change the actual registration fees charged by the DMV. It only affects dealer pricing transparency and return rights. You’ll still pay standard California registration fees, vehicle license fees, and applicable taxes.

What if the dealer didn’t disclose the Total Price properly?

If you believe the dealer violated the CARS Act’s disclosure requirements, you can file a complaint with the California Department of Motor Vehicles or the California Attorney General’s Consumer Protection Division. Document everything, including advertisements and all communications with the dealer.

Can I use Quick Auto Tags for registration of a car I might return?

We recommend contacting us after your three-day return window expires (day four) to avoid any complications. However, if you’re certain you’re keeping the vehicle, we can begin preparing your paperwork earlier to ensure a quick turnaround once the window closes.

Does the CARS Act apply to leased vehicles?

Yes. The Total Price disclosure requirements and optional add-on transparency rules apply to both purchases and leases. However, the three-day return right for used vehicles applies to purchases, not leases.

What if I’m buying out my lease in 2026?

Lease buyouts are not covered under the three-day return provision since you already possess the vehicle. You can proceed with registration immediately after completing the buyout. Quick Auto Tags can handle all the title transfer and registration paperwork for your lease buyout.

Important Registration Deadlines to Remember

• Day 1: Purchase date (if used car, three-day return window begins)
• Day 4: Used car purchase becomes final (return window ends)
• Day 10: California registration deadline—must be registered within 10 days of purchase
• Recommended: Contact Quick Auto Tags by day 4 (used cars) or immediately (new cars)

Red Flags: When a Dealer May Not Be Following the Law

Under the CARS Act, watch out for these warning signs:

❌ Dealer refuses to show Total Price in writing

❌ Pressure to buy add-ons with claims they’re “required”

❌ Charging for services that don’t apply to your vehicle type

❌ Discouraging you from exercising your three-day return right

❌ Incomplete or missing paperwork at time of purchase

❌ Refusing to provide temporary operating permits

If you encounter any of these issues, document everything and consider contacting the California DMV or an attorney before proceeding with registration.

Get Your California Registration Done Right in 2026

The California CARS Act brings important protections for car buyers, but it also adds complexity to the purchase and registration process. At Quick Auto Tags, we stay up-to-date on all California DMV requirements so you don’t have to.

Whether you’ve just purchased a new or used vehicle, we can handle your:

• Vehicle registration
• Title transfers
• License plate orders
• Temporary permit renewals
• DMV documentation review

Ready to register your newly purchased vehicle? Contact Quick Auto Tags at (951) 409-9091 or visit us at our Riverside location. We’ll make sure your registration is completed correctly, on time, and in full compliance with California’s new 2026 requirements.

Quick Auto Tags is your certified California DMV alternative service. We’re located at 5586 Mission Blvd Ste B, Riverside, CA 92509. Our team specializes in hassle-free vehicle registration, title transfers, and all DMV services for Riverside County and throughout California.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Laws and regulations are subject to change. For specific questions about your vehicle purchase or registration, consult with Quick Auto Tags or a qualified attorney.

Additional Resources

• California DMV Official Website
• Full Text of California CARS Act (SB 766)
• Quick Auto Tags DMV Services
• California Vehicle Code