UPDATE: SB 791 (2025-2026) was VETOED on October 13. Read Governor Newsom’s veto message here.
Senate Bill 791 raises the $85.00 cap that many auto dealers are currently charging to process vehicle registration and title. Under SB 791, dealers could charge either 1% of the purchase price or up to $260, which is more than three times the existing fee.
Critics argue that the bill adds unnecessary “junk fees” and benefits car dealers by shifting costs to consumers. The primary beneficiaries of this legislation are expected to be high-volume automotive dealership entities that are publicly traded on Wall Street and headquartered in other states, such as the following multi-billion dollar corporations:
- Tesla (Austin, Texas)
- AutoNation (Fort Lauderdale, Florida)
- Penske Automotive Group (Blomfield Hills, Michigan)
- Lithia Motors (Medford, Oregon)
Governor Newsom has until October 13 to either sign the bill, veto it, or allow it to become law without his signature.
When Life Gives You Lemon Cars