Notice Posting

Every retail dealer, at each location, shall post a notice, at least 8″ by 10″, which states:

“The prospective purchaser of any vehicle may, at his or her own expense, and with the approval of the dealer, have the vehicle inspected by an independent third party, either on or off the premises.”

See Related Links, Forms and Sample Documents:

The Car buyers bill of rights, AB 68, becomes effective on July 1, 2006 and includes sweeping changes for the retail selling process in California. One of these changes is the addition of a Contract Cancellation Option which must be offered to every buyer of a used vehicle sold by a licensed dealer. We have added a section to the rear of this guide with all the details.

Every dealer shall conspicuously display a notice, not less than * inches high and 10 inches wide, in each sales office and sales cubicle of a dealer’s established place of business where written terms of specific sale or lease transactions are discussed with prospective purchasers or lessees, and in each room of a dealer’s established place of business where sale and lease contracts are regularly executed, which states the following:

“THERE IS NO COOLING-OFF PERIOD
UNLESS YOU OBTAIN A CONTRACT CANCELLATION OPTION”

California Law does not provide for a ” cooling-off ” or other cancellation period for vehicle lease or purchase contracts. Therefore, you cannot later cancel such a contract simply because you change your mind, decide the vehicle costs too much, or wish you had acquired a different vehicle. After you sign a motor vehicle purchase or lease contract, it may only be canceled with the agreement of the seller or lesser or for legal cause, such as fraud.

However, California law does require a seller to offer a 2 day contract cancellation option on used vehicles with a purchase price of less than $ 40,000., subject to certain statutory conditions. This contract cancellation option requirement does not apply to the sale of a motorcycle or an off-highway vehicle subject to identification under California law. See the vehicle contract cancellation option agreement for details.”

For the Contract Cancellation Option Notice go to: https://gotplates.com/wp-content/uploads/2023/09/Contract-Cancellation-Option-Notice.pdf or see sample on page 16.

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

A dealer may offer the contract cancellation option at no charge to the buyer. If the dealer does charge for the option, the provisions are:

  • $75 for a vehicle with a cash price of $5,000 or less.
  • $150 for a vehicle with a cash price of $5,000 but less than $10,000
  • $250 for a vehicle with a cash price of $10,000 but less than $30,000
  • 1% of purchase price for $30,000 but not more than $40,000.

For the new “Contract Cancellation Fee Schedule” sign go here: https://gotplates.com/wp-content/uploads/2023/09/4.-Assembly-Bill-68-The-Car-Buyers-Bill-of-Rights.pdf or see sample on page 18.

A dealer must cancel a conditional sales contract if the buyer decides to obtain and exercise the contract cancellation option. The dealer shall, upon return of the vehicle and following a written return inspection, provide the buyer with a full refund. The dealer shall make the refund within two days of the date of cancellation, including sales tax and any registration fees, but excluding:

The cost of the contract cancellation option

A restocking fee: The restocking fee is limited to:

$ 175 with a cash price of $500. or less
$ 350 with a cash price of less than $10,000.
$ 500 with a cash price of $10,000 or more.

However, the cost of the contract cancellation option fee must be subtracted from the restocking fee.

For the new Contract Cancellation Restocking Fee Schedule go to: https://gotplates.com/wp-content/uploads/2023/09/A6-doc.pdf or see sample on page 20.

California law does not currently require any training to become a Licensed Sales Person, but DMV requires a notification within 10 days upon hiring of firing a licensed sales person.

All managers and finance personnel must be licensed sales persons. All managers taking the renewal class on behalf of the dealership must be licensed sales persons.

Those married to owners of a dealership, if involved in the business with regards to personal use of the dealer plate, managerial, financial or registration work must be licensed sales persons.

With the advent of the Car Buyers bill of rights, AB 68, the need for training has never been greater.

Every retail dealer, at each location, in each sales office, at each desk where terms of sales or lease transactions are discussed, shall post a notice at least 8″ by 10″ which states:

California law does NOT provide for a “cooling off” or cancellation period for vehicle purchase or lease contracts.

THEREFORE, You cannot later cancel such a contract simply because you change your mind, decide the vehicle costs too much, or wish you had acquired a different vehicle. After you sign a motor vehicle purchase or lease contract, it may only be canceled with the agreement of the seller or lesser OR for legal causes such as fraud.

Every retail dealer shall have these items posted in the main sales location, visible to the public. The notices must also be visible to the retail customer at the time of document explanation and signing. The no cooling off period provisions are also a required signoff on the 553, retail sales contract.

For “No Cooling Off Period” Notice go to: https://gotplates.com/signs.pdf or see sample on page 15.

Permanent signage required for retail locations sufficient to withstand weather. A temporary sign is allowed with a permanent sign on order.

It shall have an area of at least two ( 2 ) square feet per side. It shall be able to be read from a distance of fifty ( 50 ) feet.

  • At each location the dealer must post the dealer’s license.
  • At each location the dealer must post the sales license(s)
  • The sales license fee is $ 93. with no test, good for three years.

See Related Links, Forms and Sample Documents:

The DMV issues a salesperson license to any individual for the fee of $ 93. following submission and approval of an application and a livescan fingerprint card. A background check and credit check are also completed. For the license to be active it must be assigned to an active dealer license. The salesperson license must be posted in the main office of the dealer granting permission. A licensed salesperson may only be assigned to one dealership at a time.