Can you return a car?

Ranked #2 in Cars, #257 overall

Avoid Car Buyer's Remorse

Many car buyers have "buyer's remorse" and wrongly believe they can return a used car for several days after the purchase. This site will explain that there is no country wide law in the US or Canada (and indeed no country that I have found) that requires a car dealer or a person selling a new or used car to take a car back. It will outline the limited and very specific instances when a used car can be returned to the seller. It will also discuss the several megadealers in the US and the UK who will accept returns on used car purchases - not because they legally have to, but because it is part of their marketing strategy.

Avoid Buyer's Remorse - don't sign any contract or even leave a deposit unless you are sure. 100% sure. 110% sure. 200% sure if possible.

Limited cases where you can return a used car

When can I return a car?


1. The dealer CHOOSES to add a clause to your contract that allows you to return the car within a specified amount of time.



2. The car was purchased in CALIFORNIA, USA or ONTARIO, CANADA - See the section below on the CALIFORNIA Car Buyer's Bill of Rights or the ONTARIO Motor Vehicle Dealers Act.



2. The car was leased in NEW JERSEY - You have 24 hours to change your mind.



Buyer's Remorse Poll

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State and Provincial Laws

Details on Laws that Affect You

Buying a Used Car - Federal Trade Commission Guide
A guide from the Federal Trade Commission "Dealers are not required by law to give used car buyers a three-day right to cancel. The right to return the car in a few days for a refund exists only if the dealer grants this privilege to buyers. Dealers may describe the right to cancel as a "cooling-off" period, a money-back guarantee, or a "no questions asked" return policy. Before you purchase from a dealer, ask about the dealer's return policy, get it in writing and read it carefully."


California - DMV
Car Buyer's Bill of Rights - Important Facts About A New Law That Substantially Impacts The Purchase Of New And Used Vehicles


Massachusetts - The Used Vehicle Warranty Law
The Used Vehicle Warranty Law protects consumers who buy used vehicles from a dealer or private party in Massachusetts. (M.G.L. c. 90 ยง7N 1/4) The law requires dealers to provide consumers with a written warranty against defects that impair the vehicle's use or safety, and requires private parties to disclose any known use or safety defects.


Minnesota - Office of the Attorney General
Minnesota has one of the strongest Used Car Warranty Laws in the country. Under the Minnesota Used Car Warranty Law, used car dealers must provide basic warranty coverage for most used cars and small trucks sold to Minnesota buyers (Lots of restrictions - most notably less than 75,000 miles). The Used Car Warranty Law does not apply if you buy a used car from a relative, friend, from a private party or "as is."


New Jersey - Guide to Auto Leasing
Guide to rules on auto leasing in New Jersey.

Test Your Knowledge of Car Buying Laws

5 question quiz

Most Used Cars are Sold "As Is"

"As Is" Means NO WARRANTY - NONE - NOTHING!

A car which is sold without a warranty is sold "as is." That means the seller has no obligation to fix any problem that may arise. Check the Buyer's Guide window sticker to determine if you will receive a warranty. That sticker will tell you if you have a warranty, or if you are buying "as is."

Dealer Makes an Offer to Allow Car Returns

Unless it is in the contract - the dealer has no obligation to buy a car back!

Some dealers provide an option for the buyer to return the car. If this is the case, these terms will be in your purchase contract.

Carmax is known to extend this offer. "5-Day Money-Back Guarantee - We know that not every car is perfect for every person, so all used CarMax cars can be returned for any reason within a 5-day period. See your Sales Consultant for written details."

NO CAR RETURNS!

There is no federal law requiring a car dealer or a person selling a car to take a car back.

Let me repeat that - there is no federal law requiring a dealer or seller to take a car back - you don't have 24 hours during which you can change your mind, you don't have three days to reconsider - when you buy a car it becomes your property.

Attempted Law in Utah (2011)

Contract Cancellation Option on Purchase of Used Vehicle

Rep. Bird of Utah tried to have a bill passed in Utah. In February of 2011 he explained the bill to the committee assisted by Melanie Briggs, West Jordan City Clerk, relating a personal experience. Unfortunately, Craig Bickmore, New Car Dealers Association, and Wayne Jones, Independent Auto Dealers Association, spoke against the bill and the bill never made it out of committee. So no additional protection for consumers in Utah.

Consumer Complaints

Car dealerships cause the greatest number of consumer complaints, and many consumers face misleading marketing tactics and even discriminatory lending from auto finance centers.

The CALIFORNIA Car Buyer's Bill of Rights

Used car buyers may purchase a two-day sales contract cancellation option.

There is no "cooling off" period unless you obtain a contract cancellation option. YOU MUST PURCHASE THIS OPTION WHEN BUYING THE CAR.

Consumers who purchase a used car for less than $40,000 must be given an opportunity to purchase a two-day Contract Cancellation Option Agreement. The contract cancellation option does not apply to used cars priced at $40,000 or more, new cars, private party sales, motorcycles, off-road vehicles, recreational vehicles, or vehicles sold for business or commercial use.

The following indicates how much you can expect to pay if you choose to purchase the contract cancellation option:

* $75 for a vehicle costing $5,000 or less;
* $150 for a vehicle costing more than $5,000, but not more than $10,000;
* $250 for a vehicle costing more than $10,000, but not more than $30,000; or
* One percent of the purchase price for a vehicle costing more than $30,000, but not more than $39,999.99

If you choose to return the vehicle, within the time specified, the dealer can charge a maximum restocking fee of:

* $175 for a vehicle costing $5,000 or less;
* $350 for a vehicle costing more than $5,000, but less than $10,000; or
* $500 for a vehicle costing $10,000 but less than $40,000.

The official government web site is http://dmv.ca.gov/pubs/brochures/fast_facts/ffvr35.htm

The Salesperson said I could return the car

Be certain to get everything in writing. For example, if you're told that you can turn the return the car within a certain number of days, don't take the salesman's word for it, get it in writing as part of the contract, not just on a blank piece of paper signed by the salesman. Usually, if it is not on the printed contract, it is not binding.

My Car is a Lemon

A Lemon Car is a legal definition - not an opinion

If the paint is peeling, the light switch came out when you pulled on it, the car makes "funny noises" but otherwise drives just fine, or you found 10 things you don't like about your new car but none of them prevent you from driving it, then No, you do not have a Lemon.

If the brakes don't work, the car won't go into reverse gear, the darn thing won't start on cold mornings or hot afternoons, the rear door opens all by itself, the driver's seat wobbles, or the car chugs along at 30 mph when it should be going 50 mph, then Yes, you may have a Lemon. Providing you've given the manufacturer an opportunity to repair the defect.

Generally, if a NEW car has been repaired 4 or more times for the same Defect within the Warranty Period and the Defect has not been fixed, the car qualifies as a Lemon. A vehicle that continues to have a defect that substantially impairs its use, value, or safety could be classified as a lemon. All States differ so you should consult the Lemon Law for your particular State. Note that the warranty period may or may not coincide with the Manufacturer's Warranty. Generally lemon laws ONLY apply to the first owner, but they may continue to apply as long as the car is under the original new car warranty period.

You may have a Lemon, but if you do nothing to protect your Consumer Rights, such as documenting your Repairs and allowing the Manufacturer a chance to fix the problem(s), you lose all rights under the various State Warranty Acts.

When financing falls through

Often the dealer can ask you to return the car!

If you buy a car that is financed through the dealership, the dealer CAN cancel the contract, but typically only if you are notified within 10 days of the date on the purchase contract.

As with all contracts, the specifics are tied to YOUR SPECIFIC CONTRACT. Typically you sign a document that is called "RETAIL INSTALLMENT SALES CONTRACT." This will typically have a section "Seller's Right to Cancel." This section tells you that after you sign the purchase contract and leave with the car, the dealership is going to find a finance company or bank to buy your contract (this is much like what happens with home mortgages). If the car dealer cannot find someone to buy your purchase contract, it can cancel the purchase contract. In this scenario, the dealership is required to return to you all consideration given for the purchase. This includes any cash you paid and your trade-in vehicle (or if your vehicle has already been sold, the value of the vehicle).

What about the MINNESOTA Car Buyer's Bill of Rights

The Minnesota Car Buyer Bill of Rights passed by the Legislature does not include a provision allowing a customer a legal right to return a vehicle. A 2-day cancellation option was proposed at the beginning of the last legislative session but was ultimately removed from the bill that passed.

Click here to read an article on this law.

Can I return a car in other states

Bills have been introduced - but none passed

Bills have been introduced in more than a dozen states - but so far they have only passed in California and Minnesota, and the Minnesota bill dropped the buy back clause. Bills have been discussed in many states for years - but so far no progress!

Used Car Buying Tips

What websites to use when searching for a car

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Avoid Buyer's Remorse!

You can't return a car - so avoid needing to return a car

    Don't Allow Yourself To Become a Victim of "Buyer's Remorse!"

    • Don't sign any sales contracts, lease contracts or finance contracts unless you are 200% certain that you want to go through with the deal and buy the car.

    • Don't give any car dealer or private party a deposit on a car deal unless you are absolutely sure you are going to see the deal through to it's final conclusion. A deposit is not a legal requirement. The seller wants the deposit so they can exert control. They want your money locked in before any "Buyer's Remorse" can occur.

    • The time to mull over the purchase is BEFORE you make the purchase. Take a day or two and sleep on the deal before you make your decision.

Cooling off rule - it doesn't apply

30 day car return myth

The Federal Trade Commission's three-day right to cancel - called the Cooling-off Rule - gives you three days to cancel purchases of $25 or more made at the buyer's home, workplace or dormitory or at facilities rented by the seller on a short-term basis The cooling off rule applies only to purchases you make at home.

Now, if you convinced the dealership to come to your house and you completed the sale at your house - then the cooling off rule applies.

Ontario Motor Vehicle Dealers Act

Ontario MVDA

    Purchaser can cancel a contract within 90 days if they can show the dealer failed to disclose or provided an inaccurate disclosure of the following items:
    • Distance travelled (within lesser of 5% or 1,000 km)
    • Wrong statement used when distance travelled unknown
    • Prior use as daily rental, emergency vehicle, taxi, limo
    • Make, model, and model year
    • Irreparable, rebuilt or salvage brand

Carcraft in the UK

United Kingdom Car Return

Carcraft

Carcraft is a large Used Car Dealer in the UK with more than 10 dealerships. There is no law requiring them to accept a return, but they have created an exchange option. If within 7 days of buying your car you aren't totally happy with it, just bring it back to us and we'll exchange it for an alternative of your choice from our showroom. The only condition is that you have done less than 500 miles since taking delivery.

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  • Reply
    Rosie Feb 7, 2012 @ 7:58 pm | delete
    i purchased a car yesterday and told it was the owners car and had never been in an accident - clean title etc..
    i pay for the car and get the paperwork to find out it has a salvaged title and the seller isn't the person on the "pink slip". is there anything i can do as I heard it is illegal not to say the vehicle is salvaged..
  • Reply
    dagsmith Feb 7, 2012 @ 10:47 pm | delete
    If the seller had knowledge of the car being a salvage they are required to share that information. With regards to an accident it can be difficult to prove they had knowledge, but if the title is branded salvage that is a different story. I am not sure if this was purchased from a licensed dealer of from a private seller. The question is whether they will work with you to return car, refund money or force you to go to court (if you can justify the legal costs).
  • Reply
    Belinda Feb 5, 2012 @ 9:09 am | delete
    I purchased a vehicle on 2/3/12 and drove off lot no down pymt was made have to take it back in next 3 days no Insurance was put on the car except for my current vehicle, did not test drive this vehicle to know it had problems until yesterday morning but I am returning it today
  • Reply
    Rebeljohn Feb 5, 2012 @ 9:02 am | delete
    very nice thanks for posting this info.
  • Reply
    Michelle Jan 31, 2012 @ 12:15 am | delete
    I just bought a car saturday 1/28/12 drove the car with no money down but do have to go back with a down payment by 2/10/12 now today 1/30/12. I was looking at my paperwork and it seems the amount the sales rep showed said I would pay for the car was 13,500.00 but notice once it went through the finance guy it says the car was 16,380.00 this is a $2,889.00 difference in price I would like to know if I can disbute this. or just cancel the sale since I didn't leave any money down? I feel like I was mislead and the swindled :( thank you.
  • Reply
    webkangaroo Jan 22, 2012 @ 11:06 pm | delete
    wow -- tons of research and advice here. I'm trying to get my own lens to approach this level. How do you get those cool bordered text modules?
  • Reply
    nelsonkana Jan 21, 2012 @ 6:34 am | delete
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  • Reply
    i-PhoneDeveloper Jan 13, 2012 @ 4:10 pm | delete
    Nice Lens very useful
  • Reply
    tiresautorepair Jan 13, 2012 @ 12:49 pm | delete
    Great Lens!
  • Reply
    milurally Jan 11, 2012 @ 10:29 am | delete
    I'm wonder how much time have you spent till you had collected all thes informations. Nice job.
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