Assembly Bill 68 The Car Buyer’s Bill of Rights Effective July 01, 2006

The new law includes a provision which mandates the dealer to offer a contract cancellation option for the buyer of a used motor vehicle.

The maximum purchase price for the contract cancellation option and the restocking fee is based on the cash price of the vehicle.

A dealer may charge a restocking fee if the buyer accepts the option and the dealer accepts the vehicle for return. If the dealer does charge for the option and restocking, the total maximum allowable fees:

  • $175 cash price of $5,000 or less.
  • $350 cash price of $5,000 but less than $10,000.
  • $500 cash price of $10,000 but less than $40,000.

Remember, the option fee must be subtracted from the total maximum allowable fees. The maximum restocking fee will be the amount remaining when the option fee has been subtracted.