California dealers are adjusting to one of the biggest changes to the state’s car-buying process in nearly two decades. During today’s CBT Live segment, Brian Maas, President of the California New Car Dealers Association (CNCDA), breaks down the recently imposed CARS Act and the operational changes dealers need to make.
According to Maas, California dealers must provide a written disclosure of a vehicle’s total price when a customer first inquires about a specific vehicle. The disclosure must be retained for two years, making recordkeeping a key part of the new process. Maas said most dealers are looking to their CRM systems to create a trackable record, while CRM providers work to make compliance easier to manage.
Additionally, the law introduces a three-day right of return for used vehicles priced below $50,000, requiring dealers to update their processes around used-car transactions and trades. Maas said dealers can sell a trade during that period under certain circumstances, but holding it for three days can simplify compliance and avoid additional paperwork if a customer returns the vehicle.
For dealers, Maas says compliance ultimately comes down to training, documentation and consistent execution. He cautions dealers against using personal cell phones to communicate the initial price unless the communication runs through a trackable application, since dealerships need a record of the disclosure. The association has provided checklists, FAQs and an 80-page compliance guide, while Maas said dealers making an honest effort to comply should have time to adjust as the law takes hold.
