Trading In Your Vehicle? California’s New CARS Act Protects You
If you’re trading in a vehicle toward a used Toyota, California’s new CARS Act gives you stronger protection on that trade-in than ever before, starting October 1, 2026.
Your Trade-In Is Protected If You Cancel
Trading in a car is one of the biggest parts of buying a used vehicle, and it’s also one of the easiest places for a customer to feel shortchanged if a deal falls through. Under the CARS Act, if you buy a used vehicle priced at $50,000 or less and decide to cancel within the new 3-day window, your trade-in doesn’t just disappear into the deal. You get it back, or its fair value, whichever works out better for you:
- The value stated in your contract
- The actual price the dealer sold it for
- Its current fair market value
Whichever of those three is highest is what you’re entitled to. That matters because trade-in values can shift between the day you sign and the day a deal might unwind, and this rule makes sure that shift never works against you.
Shopping Certified Pre-Owned? This Applies to You Too
If you’re looking at a Certified Pre-Owned Toyota, the same 3-day, 400-mile cancellation right applies as long as the vehicle is priced at $50,000 or less. That’s on top of the manufacturer-backed inspection and warranty coverage CPO vehicles already carry, giving you two layers of confidence in a used Toyota purchase.
Full Price Transparency, Too
Beyond trade-ins, the CARS Act requires dealers to advertise the real total price of a vehicle, not just the MSRP, with any add-ons or markups already built in. The only things added after that are taxes, government fees, and a documentation fee. Read the full CARS Act guide for everything the law covers, including add-on rules and how it applies across financing, leasing, and cash purchases.
Common Questions
Does the trade-in protection apply to new Toyota purchases?
The 3-day cancellation right, and the trade-in return protection tied to it, applies to used vehicles priced at $50,000 or less. Price transparency rules apply to new and used vehicles alike.
What if my trade-in’s value changed by the time I canceled?
You’re entitled to the highest of three values: your contracted trade-in value, the price the dealer actually sold it for, or its current fair market value.
Does this apply to Certified Pre-Owned Toyota vehicles?
Yes, as long as the vehicle is priced at $50,000 or less, CPO purchases qualify for the same cancellation and trade-in protections as any other used vehicle.
Questions About Your Trade-In?
Our team at Valley Hi Toyota can walk you through exactly how the CARS Act applies to your trade-in and your next purchase.
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