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Newsom Vetoes Car Dealers’ Bill to Foist Extra Fees on Buyers

Newsom vetoed a bill raising dealer fees, maintaining the current $85 cap while signing a new law that allows used car buyers a three-day full refund window, consumer advocates said.

  • On Monday, Newsom vetoed Senate Bill 791, which would have raised the $85 processing fee to up to 1% capped at $260 and added $175 for buyers.
  • Despite pledges to lower costs this year, Sen. Dave Cortese initially proposed a $500 fee before settling on $260, allowing the measure to reach the governor.
  • Lawmakers said the $85 cap is among the lowest nationwide, while Sen. Dave Cortese argued the settled amount would help dealers recoup costs for employees spending an hour and a half on paperwork, according to the California New Car Dealers Association.
  • Brian Maas, president of the California New Car Dealers Association, said dealers were "extremely disappointed" by the veto, while Newsom also signed Senate Bill 766 this month creating a three-day return policy for used car buyers under $50,000.
  • The California New Car Dealers Association has donated at least $3 million to legislators since 2015, and consumer advocates called Newsom's veto this year "huge wins for California car buyers.
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The Sacramento Observer broke the news in on Wednesday, October 15, 2025.
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