Legal Codes

Below is the full text of 13 California Code of Regulations, Section 260.04. This regulation was promulgated by California’s Department of Motor Vehicles under the authority conveyed by the California Vehicle Code. It deals generally with advertisement requirements for car dealers and manufacturers.

Section 260.04. Vehicle Availability

(a) No dealer shall advertise a specific vehicle or a class of vehicles for sale, unless such vehicle(s) is in the dealer’s possession, or is available to the dealer pursuant to a franchise agreement with the manufacturer or distributor of the vehicle(s). An advertisement of a vehicle not in a dealer’s possession must so indicate, and must include a reasonable estimate of the date such vehicle will be available from the franchisor for delivery to a prospective purchaser.

(b) A specific vehicle advertised by a dealer or lessor-retailer shall be in condition to demonstrate and shall be willingly shown and sold at the advertised price and terms while such vehicle remains unsold or unleased, unless the advertisement states that the advertised price and terms are good only for a specific time and such time has elapsed. Advertised vehicles must be sold at or below the advertised price irrespective of whether or not the advertised price has been communicated to the purchaser.

(c) No manufacturer or distributor shall advertise vehicles for sale unless such vehicles are available to franchised dealers within the meaning of subsection (a) of Vehicle Code Section 11713.2, or, if not so available, the advertisement must include the date such vehicles will be available for purchase from retail dealers in the area in which the advertisement is disseminated.