How much restocking fee can a California dealer charge when a used-car buyer cancels?
Quick answer
1.5% of the vehicle's sale price, but never less than $200 or more than $600. If the car was driven over 250 miles, the dealer may add $1 for each mile over 250, up to $150 more. So the most a dealer can charge is $750. The fee comes out of the refund first (Civil Code 1784.31(g) and 1784.43(a)(2)).
What does the law say? Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Base fee | 1.5% of the sale price, not less than $200 and not more than $600 (1784.31(g)(1)(A)) | Official source |
| Mileage add-on | $1 for each mile over 250 miles, capped at $150 (1784.31(g)(2)) | Official source |
| Shipping option | Instead of the base fee, a dealer that charged a shipping fee may keep its actual shipping cost, up to the base-fee amount, and must refund the rest (1784.31(g)(1)(B)) | Official source |
| How it is collected | Deducted from any refund; if the refund does not cover it, the balance is due when the buyer cancels (1784.43(a)(2)) | Official source |
| Overcharging | Overcharging the restocking fee is a violation of the CARS Act (1784.43(c)(2)) | Official source |
| Which sales | Used vehicles sold or leased at retail for $50,000 or less, driven no more than 400 miles since signing (1784.43(a)(1)) | Official source |
| Last verified | October 23, 2026 | Astor Ventures |
How do I work out the fee on a real sale?
Take 1.5% of the sale price. On a $20,000 car that is $300. On a $10,000 car 1.5% is $150, so the $200 minimum applies. On a $45,000 car 1.5% is $675, so the $600 maximum applies. If the buyer drove 320 miles, add $70 for the 70 miles over 250. The mileage part never goes above $150.
Can the dealer charge for the right to cancel itself?
No. The disclosure the dealer must hand over has to say that the dealer cannot charge for the right to cancel but may charge a restocking fee, and it must explain how both parts of that fee are calculated (1784.43(b)(4)).
What if the dealer shipped the car to the buyer?
A dealer that charged a shipping fee may keep the shipping cost it actually paid instead of the 1.5% fee. It cannot keep more than the 1.5% fee would have been, and it must refund any difference between what it charged and what it keeps.
Want it done in an afternoon? The California CARS Act dealer kit turns these rules into fill-in templates, a checklist and a tracker, with the official sources quoted. One-time payment, instant download.
What else do people ask?
Is the restocking fee optional for the dealer?
Yes. The statute says the dealer may charge it, not that it must.
Is there a fixed fine for overcharging?
Sections 1784.31 and 1784.43 call overcharging a violation but do not set a dollar fine in those sections. See our CARS Act penalty guide.
Does the fee apply over 400 miles?
No fee question arises: past 400 miles the right to cancel no longer applies.
Is this legal advice?
No. General information only.