CarMax to pay $1,100,000 to resolve consumer protection action related to sale of used cars in California
San Francisco, CA – Today, San Francisco District Attorney Brooke Jenkins announced that CarMax Auto Superstores, Inc. (“CarMax”), the country’s largest retailer of used cars, has been ordered to pay a total of $1,100,000 to resolve a consumer protection action related to the sale of used vehicles in California. The payments were ordered as part of a stipulated judgment filed in a lawsuit brought by District Attorney Brooke Jenkins and the District Attorneys of Santa Clara, Sonoma, Los Angeles, Ventura, and Riverside Counties. This case follows on the heels of a similar action in 2025 against dealerships affiliated with AutoNation, another of the country’s large automobile dealers. The AutoNation case also resulted in an injunction designed to protect consumers.
“My office is committed to protecting California consumers and ensuring that their rights are protected. California consumers should know that, when they choose to purchase a used car from a licensed dealer, all the transfer paperwork will be submitted in a timely fashion,” said District Attorney Brooke Jenkins. “I am pleased that CarMax made changes that will minimize the number of problems that may arise in the future.”
According to the complaint, CarMax violated laws related to the timely transfer of registration and ownership of used cars. In California, used car dealers must submit to the DMV an application to transfer registration to a buyer within 30 days of the date of sale. That same 30-day deadline applies to the certificate of ownership (“pink slip”). These deadlines may be extended if the DMV returns an application to the dealer because it is missing information.
CarMax cooperated with the investigation and took steps to improve its compliance with consumer protection laws. Without admitting liability, the company was ordered to pay $900,000 in civil penalties, $150,000 in investigative costs, and $50,000 in contributions to support statewide consumer protection efforts. As part of the settlement, CarMax agreed to implement and enforce a host of polices to ensure that consumers receive registration and ownership paperwork in a timely manner. These include: placing a hold on the sale of used vehicles when they do not have title in hand or a clear path to getting it within 30 days; requiring that prior to any sale, a smog check or VIN verification is performed, as necessary; having sufficient employees to process ownership transfers; and ensuring that a designated employee at the level of regional manager or higher is responsible for overall compliance with the judgment.
Case Number: 26CV487286
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