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Governor Newsom vetoed a fee hike, instead signing a law giving used car buyers under $50,000 a three-day cooling-off period with a refund.
Governor Gavin Newsom vetoed a bill to raise California’s car dealership document-processing fee from $85 to $260, citing concerns over consumer costs and "junk fees."
The legislation, backed by car dealers to offset rising administrative burdens from 113 state-mandated documents, passed the Senate unanimously and advanced in the Assembly but failed to gain the governor’s approval.
Newsom instead signed Senate Bill 766, creating a first-in-the-nation three-day cooling-off period for used car buyers under $50,000, allowing full refunds with a restocking fee.
Consumer advocates praised the decision, calling it a win for transparency and buyer protection.
The new return policy takes effect October 1, 2026.
El gobernador Newsom vetó un aumento de tarifas, en su lugar firmó una ley dando a los compradores de autos usados por debajo de $50,000 un período de tres días de reflexión con un reembolso.