(a) (1) (A) A dealer shall not sell or lease a used vehicle at retail at a price equal to or less than fifty thousand dollars ($50,000) without providing the buyer or lessee with a three-day right to cancel the purchase or lease. (B) The right to cancel does not apply if the used vehicle has been driven more than 400 miles between the execution of the sale or lease agreement and the date on which the buyer or lessee attempts to exercise the right. (2) (A) A dealer may charge a buyer or lessee who exercises the right to cancel a restocking fee. Except as provided in subparagraph (B), the dealer may collect the restocking fee on the date the buyer or lessee exercises the right to cancel. (B) (i) If the buyer or lessee is entitled to any refund, the restocking fee shall be deducted from the refund. (ii) If the refund does not cover the full amount of the restocking fee, the balance is due at the time the buyer or lessee exercises the right to cancel. (3) (A) If the right to cancel is exercised, the dealer shall return the buyerâs or lesseeâs trade-in vehicle and all keys the buyer or lessee provided, if any, unless the dealer has sold or otherwise initiated the process to transfer the title of the trade-in vehicle, in which case the refund for the trade-in vehicle is the greater of the following: (i) The agreed-upon value of the trade-in vehicle in the sales or lease agreement. (ii) The amount for which the dealer sold the trade-in vehicle. (iii) The fair market value of the trade-in vehicle. (B) The dealer may deduct from the amount required by subparagraph (A) the amount necessary to satisfy outstanding indebtedness secured by the trade-in vehicle. The dealer shall provide the buyer or lessee a receipt documenting the cancellation that includes an itemized breakdown of the basis for each deduction. The receipt shall include the date and time when the buyer or lessee exercised the right to cancel. (C) For the purposes of clause (iii) of subparagraph (A), the dealer shall have a rebuttable presumption of establishing the fair market value by either of the two valuation methods: (i) The valuation equals the amount identified in a written offer to purchase the trade-in vehicle received by the buyer or lessee, and honored by the dealer, and that offer is valid for at least seven days. (ii) The valuation equals the vehicleâs trade-in valuation when the right to cancel was exercised, as identified in a nationally recognized pricing guide selected by the dealer, and considering the vehicleâs condition at the time the vehicle was traded in. For the purposes of this clause, ânationally recognized pricing guideâ has the same meaning as paragraph (2) of subdivision (c) of Section 11950 of the Vehicle Code. (b) Notwithstanding Section 2981.9 of the Civil Code, a dealer shall provide the buyer or lessee of a used vehicle subject to the right to cancel a copy of a disclosure titled â3-Day Right to Cancel Used Car Purchase or Leaseâ on a separate document. If the transaction is negotiated primarily in a language identified by subdivision (b) of Section 1632, the disclosure required by this subdivision shall also be provided in that language. The disclosure shall clearly and conspicuously contain all of the following: (1) The name of the selling or leasing dealer and the buyer or lessee. (2) A description and the vehicle identification number of the vehicle purchased. (3) A statement specifying the time within which the buyer or lessee must exercise the right to cancel the sale or lease and return the vehicle to the dealer. (4) A statement that although the dealer cannot charge the buyer or lessee for the right to cancel the purchase or lease, the dealer may charge the buyer or lessee a restocking fee. The statement shall describe how both components of the restocking fee are calculated. (5) A statement that the buyer or lessee cannot exercise the right to cancel if the vehicle has been driven more than 400 miles. (6) A statemen
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