California’s CARS Act: What It Means for Kia Drivers in the Coachella Valley

Date: 09.09.26

A modern Kia SUV in front of a dealership in Indio, California, with a couple calmly reviewing purchase information.

Buying or leasing a vehicle should feel clear, informed, and pressure-free. That’s why many drivers across the Coachella Valley are asking what California’s new CARS Act means for their next Kia purchase.

Officially called the Combating Auto Retail Scams Act, or CARS Act, the law was enacted through SB 766 on October 6, 2025. Its main provisions take effect on October 1, 2026.

The CARS Act applies to retail vehicle sales, leases, and financing transactions handled by licensed California dealerships. Its goal is simple: help you better understand pricing, financing, optional products, and your rights.

Here’s a clear look at the most important takeaways.

1. Advertised prices must be more transparent

Starting October 1, 2026, the total advertised price for a specific vehicle must better reflect what you would actually pay the dealership.

That advertised price must include:

The vehicle price.
Any dealer markup or adjustment.
The cost of items or products already installed on the vehicle.
Other charges that are part of the offered price, as required by law.

Taxes and certain legally permitted fees may still appear separately. However, an ad cannot show an artificially low price by subtracting every possible rebate, incentive, or discount.

In other words, the price cannot depend on you qualifying for every available incentive at the same time. The goal is to help you compare Kia vehicles and other brands using more realistic pricing.

Kia K4 at Fiesta Kia

2. The first written response must include the total price

Do you send an email, text message, or online inquiry about a specific vehicle? The dealership’s first written response must disclose the total vehicle price at least once, clearly and conspicuously.

That makes your shopping process easier because you should not have to send multiple messages just to find out what the Kia you want really costs.

This rule may be especially helpful when you are comparing options from Palm Desert, La Quinta, Coachella, Cathedral City, Palm Springs, or Indio. You can request information from different dealerships and review their responses with more confidence.

Dealerships must also keep certain advertisements and communications for two years.

3. Monthly payment discussions must include total cost disclosures

A low monthly payment can sound attractive. But a longer term usually means you pay interest for more time and may end up paying more overall.

That’s why, when a dealership discusses a monthly payment in writing, it must also disclose:

The total amount you would pay over the full term.
The down payment used to calculate the payment.
Any trade-in credit that was considered.
Other important assumptions related to the offer.
That a lower monthly payment may mean a longer term and a higher total cost.

This information helps you compare financing options more responsibly. At Fiesta Kia, you can also explore financing options and online pre-approval before you visit the dealership.

Local tip: don’t compare monthly payments alone. Ask about the vehicle price, interest rate, term length, down payment, and total of payments.

4. Add-on products are not banned, but they must be optional

The CARS Act does not ban every add-on product. An extended warranty, GAP coverage, maintenance plan, or protection product may be useful depending on your situation.

But the dealership must clearly explain that:

The product is optional.
You can buy or lease the vehicle without purchasing it.
The product has a specific price.
You must affirmatively agree to the product.

The law also prohibits charging for products that do not provide a real benefit. Examples commonly cited include:

Oil change plans for an electric vehicle.
Catalytic converter marking on a vehicle that does not have a catalytic converter.
Nitrogen tire products that do not meet the applicable legal standard.
Other products that are not appropriate or useful for the vehicle or for you.

That means you can ask direct questions and decline any product you do not need.

Ask before you sign: What does it cover? How much does it cost? Is it required? Can I buy the vehicle without it?

5. Three-day right to cancel for certain used vehicles

One of the biggest changes helps shoppers buying or leasing certain used vehicles.

For a qualifying used vehicle priced at $50,000 or less, the law creates a three-day right to cancel for any reason. The period begins the day after the contract is signed.

If the third day falls on a day when the dealership is closed, the deadline extends to the next day the dealership is open.

To use this right, you generally must:

Return the vehicle in person to the dealership.
Have driven the vehicle no more than 400 miles.
Return it in substantially the same condition, aside from normal wear and tear.
Meet the requirements stated in your purchase or lease documents.

The dealership may charge a restocking fee equal to 1.5% of the sale price, with a minimum of $200 and a maximum of $600. It may also charge up to $1 for each mile driven after the first 250 miles, capped at $150.

If you traded in a vehicle, the dealership must return it to you unless it has already been sold or transferred. If it has been sold or transferred, the dealership must pay you the greatest of:

The agreed trade-in value.
The resale amount.
The fair market value.

This right replaces the old optional two-day cancellation system for certain used vehicles priced below $40,000.

Does this apply to a Kia Certified Pre-Owned vehicle?

It may, if the used vehicle meets the legal requirements and is priced at $50,000 or less. If you are considering a Kia Certified Pre-Owned vehicle, ask for a written explanation of the transaction terms and the cancellation process.

You can explore available Kia inventory and speak with our team about the condition, history, coverage, and paperwork for any used vehicle that interests you.

6. What the CARS Act does not cover

The CARS Act does not create a general cancellation period for every vehicle.

It does not apply in the same way to:

New vehicles.
Private-party sales.
Motorcycles.
Vehicles with a gross vehicle weight rating over 10,000 pounds.
Certain business, fleet, or commercial-use transactions.

California does not have a general cooling-off period for canceling the purchase of a new vehicle. So before you sign, read the contract carefully, confirm the total price, and ask every question you have.

7. The law is separate from EV incentive programs

The CARS Act is a consumer protection law. It is separate from incentive programs such as:

MyFirstEV, which may offer an instant $3,500 rebate for first-time qualifying zero-emission vehicle buyers.
Clean Cars 4 All.
Manufacturer incentives or other state and local programs.

Eligibility, availability, and incentive amounts may change. Ask which programs apply to you and what their requirements are.

How Fiesta Kia can help

At Fiesta Kia, we believe buying or maintaining your vehicle should be transparent, reliable, and stress-free. Our large selection includes new, used, and Kia Certified Pre-Owned vehicles, along with gas, hybrid, plug-in hybrid, and electric options.

We also offer:

Flexible financing and online pre-approval.
Same-day service with no appointment necessary, subject to availability.
Certified Kia technicians.
Professional parts and maintenance support.
Kia limited warranty coverage of up to 10 years/100,000 miles for the powertrain and 5 years/60,000 miles for the basic warranty, with applicable exclusions and limitations. See Kia warranty details.

Professional automotive service from Fiesta Kia—same-day service available with no appointment needed.

Visit us at:

Fiesta Kia
78550 Varner Road
Indio, CA 92203

We proudly serve drivers from Indio, Palm Springs, Palm Desert, La Quinta, Coachella, and Cathedral City.

Sales: 442-275-1465
Service: 442-215-3987

Browse your next Kia. Call with your pricing or financing questions. Visit Fiesta Kia to see your vehicle in person. Schedule service with our expert team.

The drive you want. The service you deserve.

Shawn Nazari, General Manager, Fiesta Kia

Sources and important disclaimer

This article is an informational summary of California’s CARS Act and is not legal advice. Details may vary depending on the vehicle, price, transaction type, contract, and each customer’s specific circumstances. For legal guidance about your situation, consult a qualified attorney.

Sources consulted:

The CARS Act and Drivers in the Coachella Valley