Starting next July, California dealers must start labeling salvaged vehicles with a red warning sticker under a new law signed Monday by Gov. Jerry Brown.
The new law also requires dealers to use electronic vehicle registration for all car sales and allows dealers to charge consumers more to recoup added costs.
Both the California New Car Dealers Association and consumer advocates backed the new law in the nation's largest auto sales market.
"No other state can match the built-in protections and convenience awaiting Californians," Peter Welch, president of the state's dealers association, said in a statement. "Like every small business, dealers want to focus on customers instead of paperwork."
About half of California's dealers already participate voluntarily in the electronic registration system. Under the new law, they will be able to increase the maximum documentation charge from $55 for sales and $45 for leases to $80 for both.