CA SB766

Prohibits auto dealers from misrepresenting material information about vehicle costs, financing terms, add-on products, vehicle availability at advertised prices, and trade-in payoff terms

Requires dealers to clearly disclose the total vehicle price in advertisements and written communications, and to inform buyers that add-on products are optional before purchase

Bans dealers from charging for add-on products that provide no benefit to the buyer, such as oil changes for electric vehicles, catalytic converter markings for vehicles without catalytic converters, or service contracts voided by preexisting conditions

Replaces the existing contract cancellation option agreement with a mandatory 3-day right to cancel for used vehicles priced at $50,000 or less, allowing buyers to return vehicles driven under 400 miles for a restocking fee of 1.5% of sale price ($200-$600 cap) plus up to $150 for excess mileage

Requires dealers to retain compliance records for 2 years, including purchase orders, financing documents, add-on product documentation, and cancellation requests, with all provisions becoming operative October 1, 2026