2.1 The Car Buyer’s Bill of Rights (AB 68)

The Car Buyer’s Bill of Rights is one of the most important consumer protection laws you’ll deal with as a California dealer. It was enacted through Assembly Bill 68 and is codified in Vehicle Code Section 11713.21. Understanding this law is not optional — violating it can result in penalties, lawsuits, and license discipline.

Let’s start with scope. The Car Buyer’s Bill of Rights applies to used vehicles purchased from a dealer for less than $40,000. Notice the key qualifiers: used vehicles, from a dealer, under $40,000. It does not apply to new vehicle sales. It does not apply to private party sales. And it does not apply to used vehicles sold for $40,000 or more. If a used vehicle sells for exactly $40,000, the law does not apply — the threshold is “less than” $40,000.

Now, the centerpiece of the Car Buyer’s Bill of Rights is the Contract Cancellation Option. This is sometimes called the “cooling off period” or the “2-day return right.” Here’s how it works: when you sell a qualifying used vehicle, you must offer the buyer the option to purchase a contract cancellation agreement. If the buyer purchases this option, they have the right to return the vehicle within two days or 250 miles of driving — whichever comes first — and cancel the contract.

This is not a free right — it’s an option that the buyer must pay for. The cost is tiered based on the vehicle’s purchase price. The buyer has the right to either purchase this option or decline it, but you as the dealer must offer it. You cannot skip the offer. You cannot rush through it. You must present it clearly and allow the buyer to make an informed decision.

If the buyer exercises the cancellation option, they return the vehicle in substantially the same condition as when they took delivery. You refund the purchase price and any fees, minus the cost of the cancellation option itself and a reasonable per-mile use charge. The vehicle must be returned to your dealership during your posted business hours within the two-day window.

Think about what this means for your sales process. Every time you sell a qualifying used vehicle, your sales documents must include the contract cancellation option disclosure. Your salespeople must be trained to present this option clearly and without discouragement. If a buyer says “yes, I want the cancellation option” and then comes back the next day wanting to return the car, you must honor it. You don’t get to argue about it. You don’t get to make excuses. The law is clear.