The new law, AB68, includes a provision which mandates the dealer to offer a contract cancellation option for the buyer of a used motor vehicle.
The dealer must offer a contract cancellation option to each buyer (unless the sale is exempt, exemptions listed below)
A dealer must offer the contract cancellation option for the sale of any used vehicle unless:
- It is not a retail sale (wholesale transactions do not require an option)
- The purchase price is over $40,000.
- The vehicle is a motorcycle, off road vehicle or recreational vehicle.
- The vehicle is sold for commercial use.
- The buyer has returned a vehicle to the same dealer under a contract cancellation option within the prior 30 days.