One month after California’s CARS Act took effect, dealers are beginning to see how its requirements are changing daily showroom operations. Ryan Crenshaw, Vice President and General Manager of Toyota of Riverside, joins us on today’s CBT Live to explain how his dealership prepared its sales and BDC teams, adjusted its contracting procedures and is managing the law’s three-day used-car return policy.
According to Crenshaw, preparing employees before the CARS Act took effect was critical to ensuring a manageable transition. He noted how he worked with the group’s regional Vice President, Brad Pringle, to train dealership staff, explain the law’s requirements and update processes ahead of the Oct. 1 implementation. One of the biggest adjustments, he said, involved the BDC and customer communications. Since dealers must now provide total price disclosures in written communications before salespeople can move forward with certain vehicle and pricing conversations, Crenshaw said his team had to review CRM processes, response times and automated messaging to ensure disclosures were sent and documented properly.
The law’s three-day used-car return period has also required changes to dealership funding and inventory procedures, although Crenshaw said the number of returns has remained relatively small. Toyota of Riverside averages about five used-car returns per month out of approximately 300-350 used vehicles sold. The bigger operational challenge has been the effect on contracts in transit (CIT) and funding timelines. The dealership has adjusted its process by holding some weekend contracts until Tuesday to allow additional time for potential returns and reduce funding complications.
Crenshaw’s broader advice to dealers is to approach compliance with preparation and a willingness to adapt rather than fight new requirements. He said dealerships that consistently do business the right way and build processes that benefit both customers and the store will be better positioned to manage regulatory changes. He also emphasized that dealers must continue investing in employee training as customer expectations and technology evolve. With buyers increasingly equipped with online research tools and AI, Crenshaw said one of his biggest priorities is using technology to support employees rather than replace them, ensuring dealership teams are prepared to serve a more informed customer.
