What California Car Dealerships Can Do Now to Prepare for the CARS Act Taking Effect in October 2026
A Dealer Checklist for Preparing for California’s New Auto Sales Requirements
California dealerships will need to adjust their sales, advertising, and documentation processes before the California Combating Auto Retail Scams (CARS) Act (SB 766) takes effect on October 1, 2026.
The new law changes how dealerships handle vehicle advertising, customer communications, optional products, and transaction records. While every dealership’s preparation process may look different, taking steps early can help identify potential issues before the new requirements become effective.
For dealerships in Los Angeles County and throughout California, preparing for the CARS Act starts with reviewing current procedures and making sure sales, finance, internet, and management teams understand the upcoming changes.
The Law Office of Michael Geller helps California auto dealerships evaluate compliance concerns and understand their legal obligations as automotive regulations continue to change.
California CARS Act Preparation Checklist for Dealerships
Review Your Vehicle Advertising Practices
One of the first areas dealerships should review is how vehicles are advertised.
Dealers should examine:
- Online vehicle listings
- Website inventory pages
- Digital advertisements
- Promotional materials
- Pricing displays
- Third-party advertising platforms
Dealerships should confirm that their advertising processes are ready to meet the new requirements for vehicle pricing disclosures and that advertised information accurately reflects the vehicle being offered.
A review of current advertising practices before October 2026 can help dealerships identify areas that may need updates.
Train Sales and Internet Teams on New Requirements
The sales process begins before a customer enters the dealership. Online communication, phone conversations, and initial customer interactions may all play a role in compliance.
Dealerships should consider training:
- Sales representatives
- Internet sales teams
- Business development representatives
- Finance personnel
- Managers
Employees should understand how new disclosure requirements affect customer conversations and vehicle purchase discussions.
Consistent training can help reduce confusion and create a smoother buying process.
Review Optional Products and Add-On Procedures
Many dealerships offer optional products and services during the vehicle purchase process.
Before the CARS Act takes effect, dealerships should review how these products are presented and documented.
This includes reviewing procedures for:
- Vehicle protection products
- Service contracts
- GAP agreements
- Other optional vehicle products
Dealers should make sure customers receive clear information about optional products and understand what they are purchasing before completing a transaction.
Evaluate Your Sales Documentation Process
Dealerships should review the documents used throughout the sales process to determine whether updates may be needed.
Consider reviewing:
- Customer worksheets
- Disclosure forms
- Purchase documents
- Lease documents
- Cancellation-related paperwork
- Product agreements
A consistent documentation process can help employees follow the correct procedures and create better records of customer transactions.
Review Record-Keeping Procedures
The CARS Act creates additional record retention requirements related to certain dealership activities.
Dealerships should evaluate how they currently store and organize records, including:
- Vehicle advertisements
- Customer communications
- Transaction documents
- Optional product disclosures
- Cancellation requests
- Refund documentation
Having organized records can help dealerships respond more efficiently if questions arise about a transaction or compliance process.
Update Dealership Policies and Internal Procedures
Written policies can help employees understand their responsibilities and follow consistent procedures.
Dealerships should consider reviewing policies related to:
- Advertising practices
- Customer communication
- Vehicle pricing
- Optional products
- Documentation requirements
- Record retention
Clear internal procedures can help ensure that compliance expectations are followed across different departments.
Work With Your Team Before the October Deadline
Preparing for the California CARS Act should not be a last-minute process. Dealerships should give their teams time to review changes, ask questions, and update daily procedures.
A proactive approach may help dealerships:
- Identify compliance gaps
- Improve internal processes
- Train employees
- Update documentation
- Reduce potential risks
Need Help Understanding California CARS Act Requirements?
The California CARS Act will impact how dealerships advertise vehicles, communicate with customers, document transactions, and manage compliance records.
For dealerships in Los Angeles County and throughout California, understanding the requirements before October 1, 2026 can help create a stronger compliance process.
The Law Office of Michael Geller works with auto dealerships facing questions about changing automotive regulations, compliance concerns, and legal issues affecting vehicle sales practices.
If your dealership needs guidance preparing for the CARS Act or assistance with a compliance-related matter, contact the Law Office of Michael Geller to discuss your options.
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