Last Updated on March 29, 2026 by The HD Post Staff

CALIFORNIA – CarMax dealerships have been ordered to pay $1.1 million to resolve a California consumer protection lawsuit over used vehicle sales.

The lawsuit alleges the dealerships violated California law by failing to timely transfer vehicle registration and ownership to buyers.

Delays in transferring registration can leave buyers unable to legally drive the vehicle or receive proper title documentation.

California law requires dealers to submit DMV applications to transfer registration within 30 days of sale. The same 30-day deadline applies to transferring the certificate of ownership, or “pink slip,” unless the DMV returns the application for missing information.

As part of the settlement, CarMax agreed to implement enhanced practices to ensure compliance with state consumer protection laws.

Measures include placing sales holds when title cannot be obtained in time, completing smog checks or VIN verifications before sale, maintaining staffing to process transfers, and assigning a senior manager to oversee compliance.

The $1.1 million payment includes $900,000 in civil penalties, $150,000 in investigative costs, and $50,000 for statewide consumer protection efforts.

CarMax cooperated with the investigation and took steps to address the issues. The company resolved the case without admitting the allegations.

Case handled in Riverside County

Riverside County District Attorney Michael A. Hestrin and district attorneys from Los Angeles, San Francisco, Santa Clara, Sonoma, and Ventura counties reached a civil enforcement settlement, with judgment entered in Santa Clara County Superior Court.

This case was handled in Riverside County by Deputy District Attorney Evan Goldsmith of the DA’s Consumer Protection Unit.

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