Civil Code section 1784.43
(a)
(1)(A)A dealer shall not sell or lease a used vehicle at retail at a price equal to or less than fifty thousand dollars ($50,000) without providing the buyer or lessee with a three-day right to cancel the purchase or lease.(B)
The right to cancel does not apply if the used vehicle has been driven more than 400 miles between the execution of the sale or lease agreement and the date on which the buyer or lessee attempts to exercise the right.(2)
(A)A dealer may charge a buyer or lessee who exercises the right to cancel a restocking fee. Except as provided in subparagraph (B), the dealer may collect the restocking fee on the date the buyer or lessee exercises the right to cancel.(B)
(i)If the buyer or lessee is entitled to any refund, the restocking fee shall be deducted from the refund.(ii)
If the refund does not cover the full amount of the restocking fee, the balance is due at the time the buyer or lessee exercises the right to cancel.(3)
(A)If the right to cancel is exercised, the dealer shall return the buyer’s or lessee’s trade-in vehicle and all keys the buyer or lessee provided, if any, unless the dealer has sold or otherwise initiated the process to transfer the title of the trade-in vehicle, in which case the refund for the trade-in vehicle is the greater of the following:(i)
The agreed-upon value of the trade-in vehicle in the sales or lease agreement.(ii)
The amount for which the dealer sold the trade-in vehicle.(B)
The dealer may deduct from the amount required by subparagraph (A) the amount necessary to satisfy outstanding indebtedness secured by the trade-in vehicle. The dealer shall provide the buyer or lessee a receipt documenting the cancellation that includes an itemized breakdown of the basis for each deduction. The receipt shall include the date and time when the buyer or lessee exercised the right to cancel.(C)
For the purposes of clause (iii) of subparagraph (A), the dealer shall have a rebuttable presumption of establishing the fair market value by either of the two valuation methods:(i)
The valuation equals the amount identified in a written offer to purchase the trade-in vehicle received by the buyer or lessee, and honored by the dealer, and that offer is valid for at least seven days.(ii)
The valuation equals the vehicle’s trade-in valuation when the right to cancel was exercised, as identified in a nationally recognized pricing guide selected by the dealer, and considering the vehicle’s condition at the time the vehicle was traded in. For the purposes of this clause, “nationally recognized pricing guide” has the same meaning as paragraph (2) of subdivision (c) of Section 11950 of the Vehicle Code.(b)
Notwithstanding Section 2981.9 of the Civil Code, a dealer shall provide the buyer or lessee of a used vehicle subject to the right to cancel a copy of a disclosure titled “3-Day Right to Cancel Used Car Purchase or Lease” on a separate document. If the transaction is negotiated primarily in a language identified by subdivision (b) of Section 1632, the disclosure required by this subdivision shall also be provided in that language. The disclosure shall clearly and conspicuously contain all of the following:(1)
The name of the selling or leasing dealer and the buyer or lessee.(2)
A description and the vehicle identification number of the vehicle purchased.(3)
A statement specifying the time within which the buyer or lessee must exercise the right to cancel the sale or lease and return the vehicle to the dealer.(4)
A statement that although the dealer cannot charge the buyer or lessee for the right to cancel the purchase or lease, the dealer may charge the buyer or lessee a restocking fee. The statement shall describe how both components of the restocking fee are calculated.(5)
A statement that the buyer or lessee cannot exercise the right to cancel if the vehicle has been driven more than 400 miles.(6)
A statement that the right to cancel applies only if all of the following are personally delivered to the selling or leasing dealer during business hours by the buyer or lessee at the time the right to cancel is exercised:(A)
Restocking fees, except to the extent they are deducted from any refund as required by this section.(B)
The vehicle, meeting both of the following:(i)
Free of all liens and encumbrances, other than any lien or encumbrance created by or incidental to the sales or lease transaction.(ii)
In the same condition as when it was delivered by the dealer to the buyer or lessee, except reasonable wear and tear and any defect or mechanical problem that manifests or becomes evident after delivery that was not caused by the buyer or lessee. The dealer shall maintain documentation describing any damage beyond reasonable wear and tear.(C)
Any other cash or items received by the buyer or lessee in connection with the sale or lease of the vehicle.(7)
A statement that the dealer may require the buyer or lessee to execute documents reasonably necessary to effectuate the cancellation and refund and as reasonably required to comply with applicable law.(8)
(A)A statement that if the dealer has sold or otherwise initiated the process to transfer title of the buyer’s or lessee’s trade-in vehicle, the dealer shall pay the buyer or lessee the greater of the following:(i)
The agreed-upon value of the trade-in vehicle in the sales or lease agreement.(ii)
The amount for which the dealer sold the trade-in vehicle.(B)
A statement that the amount of the refund may be reduced as necessary to satisfy outstanding indebtedness secured by the trade-in vehicle.(9)
A statement that if the dealer represents to the buyer or lessee that it sold the trade-in vehicle, it must provide the buyer or lessee a copy of the document showing the sale of the trade-in vehicle. The dealer shall redact the personal information of the person or entity to whom the trade-in vehicle was sold.(c)
It is a violation of this title for any dealer, in connection with a buyer or lessee exercising the right to cancel, to do any of the following:(1)
Anything to impede a buyer or lessee from exercising the right to cancel the purchase or lease of a vehicle as provided in this title.(2)
Overcharge the buyer or lessee for the restocking fee.(3)
Withhold the buyer’s or lessee’s downpayment or trade-in vehicle after the right to cancel has been exercised.(4)
Fail to timely refund the buyer’s or lessee’s downpayment after the right to cancel has been exercised.(5)
Fail to refund the amount owed for the buyer’s or lessee’s trade-in vehicle if the trade-in vehicle has been sold.(6)
Fail to provide the buyer or lessee the receipt or contract for the sale of the buyer’s or lessee’s trade-in vehicle.(7)
Claim damage to the vehicle in excess of reasonable wear and tear without reasonable basis.(8)
Claim the person authorized to return the buyer’s or lessee’s downpayment or trade-in vehicle is not available.(d)
(1)No later than 48 hours after the buyer or lessee exercises the right to cancel pursuant to this section, the dealer shall cancel the contract and provide the buyer or lessee with a full refund, minus any deduction allowed by this section. The dealer is not responsible for any delays outside the control of the dealer, including delays attributable to the processing of a refund by a bank, credit card company, or other financial institution.(2)
Notwithstanding paragraph (1), in the event the buyer or lessee made a payment through a method that does not result in an immediate verified transfer of funds to the dealer, such as a check, the dealer may delay providing the refund until two business days after the buyer or lessee’s payment is verified. The dealer shall provide the buyer or lessee with documentation showing when the verification occurred.(e)
The dealer will clearly and conspicuously disclose on the first page of the purchase or lease agreement the following:(f)
This section does not affect the ability of a buyer to rescind the contract or revoke acceptance under any other law.(g)
This section does not apply to a used vehicle with a purchase price greater than fifty thousand dollars ($50,000).(h)
This section does not apply to the sale of a leased vehicle to the lessee if the lessee is in possession of the vehicle prior to the time of the sale.(i)
This section does not apply to a used vehicle sold at an auction, provided the used vehicle is in compliance with the requirements of Division 12 (commencing with Section 24000) of the Vehicle Code.(j)
This section shall not be construed to limit the ability of a dealer to offer a right to cancel that provides greater consumer protections than those outlined in this section, including a right to cancel for additional vehicles, a longer return period, or reduced restocking fees. In such circumstances, the dealer may elect to make corresponding changes that describe these greater consumer protections in any consumer notice required by this section or Section 11709.2 of the Vehicle Code.
Source:
Section 1784.43, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=1784.43. (updated Jan. 1, 2026; accessed Dec. 29, 2025).
