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Newsom Vetoes Fee Hike Amid Auto Sales Reforms

10/16/2025

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Summary

Story summary

Governor Gavin Newsom vetoed Senate Bill 791, which would raise processing fees to 1%.
Newsom said the fee hike is unreasonable given little paperwork.
The veto disappoints dealers facing rules, including the California Combating Auto Retail Scams Act (CARS Act).
The CARS Act adds protections, including a three-day return for used cars under $50,000 and clear advertising.
The act takes effect October 1, 2026 to boost transparency in auto sales.

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Story summary

Governor Gavin Newsom vetoed Senate Bill 791, which would raise processing fees to 1%.
Newsom said the fee hike is unreasonable given little paperwork.
The veto disappoints dealers facing rules, including the California Combating Auto Retail Scams Act (CARS Act).
The CARS Act adds protections, including a three-day return for used cars under $50,000 and clear advertising.
The act takes effect October 1, 2026 to boost transparency in auto sales.