Can You Return a Car You Just Bought?
Buying a car can be an exciting experience, but what happens if you have second thoughts after the purchase? While returning a car is generally not an option, there are specific situations, such as lemon laws or dealership return policies, where it may be possible. Understanding your rights and available options can help you decide the best course of action if you regret your purchase.
The excitement of purchasing a new car can sometimes cloud judgment, leading to decisions made in haste. Whether it’s realizing the car doesn’t meet expectations, feeling stuck with a high loan payment, or regretting an expensive add-on, many buyers find themselves asking if it’s possible to reverse the deal. Unfortunately, the answer is often no, particularly with new cars, though there may be room for renegotiation. For used cars, the chances of returning the vehicle are somewhat higher, but it depends on state regulations and the policies of the dealership.
What Are the Real Chances to Return a Car?
Once the sales contract is signed and the car is driven off the lot, the transaction is typically considered final. In most cases, dealers are not required by law to accept a return or offer a refund or exchange, regardless of whether the car is new or used. However, some dealerships may offer return policies that allow buyers to return the vehicle, especially if there are mechanical issues or if the buyer is unsatisfied. These policies, though, are rare and often come with specific conditions or time frames.
It’s important to understand that returning a car isn’t as straightforward as returning an item to a store. While some exceptions exist, most dealerships have strict rules when it comes to returning a car. Once the contract is signed and the car is in your possession, you're generally stuck with it. There may be a few alternatives, like renegotiating certain terms of the deal or trading the car for another, but simply returning it is usually not an option.
Cooling-Off Rule
There is no cooling-off period for car purchases. While the federal Cooling-Off Rule allows buyers to cancel certain sales made at home or temporary locations, it does not apply to automobiles. This rule is meant to protect against high-pressure door-to-door sales tactics, but once you sign a car sales contract, the deal is final. The law favors the seller, so you cannot simply return the car after purchase.
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When Returning a Car Might Be Possible
While returning a car is generally not an option, there are some situations where it might be possible, but it’s ultimately up to the dealership. Dealers want to maintain customer satisfaction, but reversing a car sale is a complex and costly process. If the dealer agrees to unwind the deal, it involves canceling loans, dealing with paperwork to preserve the car’s "new" status, and potentially refunding trade-in values. Since this is a significant hassle for the dealership, it is rarely offered as a solution. However, in certain circumstances, particularly if there are extenuating issues with the car, the dealer might be willing to negotiate a return.
The Car Turns Out to Be a Lemon or a Defective Vehicle
If your new car has a major factory defect, you may be eligible to return it under your state's lemon law. Typically, a car is considered a lemon if it has a significant mechanical issue covered by the warranty, and the problem arises within a certain period after purchase. To qualify, you must give the dealer a reasonable opportunity to repair the vehicle before it can be deemed a lemon.
If your car is declared a lemon, you may be entitled to a replacement vehicle or a full refund. This refund usually includes the purchase price, along with registration fees, sales tax, towing costs, rental fees, and any legal expenses. However, the process isn’t quick or easy. There are strict requirements to meet before a car qualifies as a lemon, such as multiple failed repair attempts or being out of service for an extended period.
In most states, lemon laws apply to new cars but rarely to used ones. Some states do offer lemon law protection for used cars, but the criteria can vary widely. For example, New York’s used-car lemon law applies only to vehicles purchased from dealers, while Massachusetts allows private-party sales to be covered if the seller fails to disclose a known defect.
If you suspect your car is defective, it's important to allow the dealer a chance to fix it, especially if it's still under warranty. If the vehicle is out of warranty, the dealer may still be willing to repair it to maintain customer goodwill. To avoid potential issues, consider buying certified pre-owned vehicles, which usually come with warranties to provide extra peace of mind.
Federal vs State Lemon Laws
All states have some form of lemon law to protect consumers who purchase a new or, in some cases, a used vehicle that fails to operate properly despite repeated repair attempts. These laws hold dealerships and manufacturers accountable for selling defective vehicles, but the specifics vary by state. Key differences include the number of repair attempts required for a car to qualify as a lemon, time and mileage limits, and whether used or leased vehicles are covered.
In addition to state laws, federal protection exists under the Magnuson-Moss Warranty Act, which safeguards consumers against deceptive warranty practices. This law applies to most consumer goods, including vehicles, and mandates that sellers provide clear and detailed warranty information. Under this federal act, consumers may be entitled to legal remedies, such as a replacement vehicle or a full refund, if their car qualifies as a lemon.
While federal law offers broad protection, state lemon laws provide more detailed requirements, such as the exact number of repair attempts needed and what constitutes a “substantial defect.” To understand your rights fully, it’s essential to consult your state’s lemon statute.
There's a Return Policy
Some auto dealers do offer return policies, allowing buyers to return vehicles within a certain number of days or miles after purchase. Online car sellers like AutoNation, CarMax, and Carvana typically provide these return options for both new and used vehicles, with return windows ranging from five to 10 days. Carvana, for example, even allows customers to return up to two cars and exchange them for new ones.
However, these return policies come with restrictions. A car might not be eligible for return if it has been damaged or driven beyond a specific mileage limit. While brick-and-mortar dealerships may allow returns or exchanges for used or certified pre-owned cars, they generally do not offer return policies for new cars.
For those purchasing vehicles online, return policies are more common. Since buyers don’t have the opportunity to test drive a car before buying it, online sellers usually provide return options to ensure customer satisfaction.
You Purchased a Contract Cancellation Option
Some car dealerships offer a contract cancellation option, allowing buyers to cancel the purchase within a specified period. Depending on the state, dealers may be required to provide this option. For example, in California, used-car dealers must offer a two-day contract cancellation option for vehicles priced under $40,000. This option gives buyers a chance to reconsider their purchase and back out within a short window, usually for a fee.
While not all states have similar requirements, it’s important to check your state's laws or ask the dealer about such options before finalizing the purchase. If a contract cancellation option is available, it can provide a valuable safety net for buyers who have second thoughts soon after buying a vehicle.
When You're Not Able to Return a Car
You Got Ripped Off
To avoid overpaying, always research a car’s market value using guides like Kelley Blue Book or Edmunds before purchasing. If you suspect you’ve been charged too much, start by discussing the issue calmly with the dealership manager. Bring evidence like the car’s fair market value from trusted sources to support your claim.
If the dealership refuses to help, consider escalating the issue. You can file a complaint with your state attorney general, the Better Business Bureau, or the Department of Motor Vehicles. If necessary, hiring an attorney or pursuing a lawsuit is an option, though it may be costly and time-consuming.
In some cases, you might also be able to cancel unnecessary extras like extended warranties or additional coverage, which can lower your monthly payment and help you refinance at a better rate.
Always keep in mind that preparation is key. Doing thorough research and being informed about the market value before buying can prevent these problems. If you feel pressured to close the deal, it’s better to walk away than regret it later.
You Regret Your Choice
If you regret buying your car, you’ll likely be unable to return it. Once the sales contract is signed, the vehicle is legally yours. Dealers are under no obligation to accept a return just because you changed your mind. However, if you feel the car isn’t the right fit for you or your budget, you can try negotiating with the dealer.
In some cases, dealers may allow an exchange, especially if you purchased a used car, though this is not guaranteed. They may offer a different vehicle, but you’ll likely need to pay any price difference. However, if you purchased a new car or a vehicle from a private seller, returning it is highly unlikely.
In dealing with regret, the first step is to speak to the salesperson. If they cannot help, try reaching out to the sales manager or the dealership owner. While they aren’t required to honor your request, showing respect and explaining your situation may encourage them to work with you.
If you want to downgrade or exchange for a different vehicle, dealers might consider it, especially if you’re still within a short window after the purchase. But ultimately, it’s up to the dealer whether they want to make an exception.
Your Monthly Payment Is Too Expensive
If your monthly car payment is stretching your budget, the first step is to reassess your finances. Setting a budget upfront can prevent overspending. Use a car payment calculator to figure out what you can afford before purchasing. Once you’ve already bought the car, your options are more limited.
Options to Consider
Refinance the loan. If you want to keep the car, refinancing may lower your interest rate and reduce your monthly payment.
Exchange for a cheaper car. If the car is too expensive, ask the dealership if you can trade it in for something more affordable.
Payment deferral. If your financial problems are temporary, check with your lender to see if you can skip a payment or two, and have those added to the end of the loan.
Voluntary repossession. As a last resort, you could return the car through voluntary repossession, but it will negatively affect your credit score and stay on your credit report for seven years.
Dealership’s discretion. Dealerships are not obligated to accept a return based on high monthly payments, and the decision is typically up to the salesperson or the manager.
What to Do With a Car You Don't Want
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Sell the car. If you want to get rid of the car, selling it privately is an option. However, keep in mind that cars lose value as soon as they leave the lot—typically by 10% or more. You’ll likely take a loss, as most buyers won’t pay full price for a used car. You’ll still be responsible for covering any difference between what the buyer offers and what you owe on your auto loan.
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Trade it in. Trading in your car at a dealership is an easier route than selling privately. While you'll likely get less than what you paid for due to depreciation, it can help offset the cost of a more affordable vehicle. However, keep in mind that any unpaid balance from your trade-in will be rolled into your new loan, meaning you’ll still owe money and could be “underwater” on your new car loan.
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Refinance your auto loan. If monthly payments are too high, refinancing may provide relief. By securing a lower interest rate or extending the loan term, you could reduce your monthly payments. Be aware, however, that refinancing can slightly impact your credit score in the short term, and some lenders may charge prepayment penalties if you pay off your original loan early. You'll generally need to wait a few months after getting your initial loan before you can refinance.
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Ask for voluntary repossession. If you're unable to make payments, you can request voluntary repossession. This means you’ll return the car to the lender, and they’ll sell it to recover some of the loan balance. Keep in mind that this action negatively impacts your credit score for up to seven years and may make future loans more expensive or harder to secure. Some lenders may also refuse to accept a voluntary repossession.
How to Avoid Returning a Car
Read car reviews. Check reviews on websites like Consumer Reports to learn about the make and model you're considering.
Research and compare prices. Use tools like Kelley Blue Book and Carfax to compare prices and check for special offers, rebates, and low-interest financing.
Research dealerships. Look for online reviews and visit sites like BBB.com to verify that the dealership has a strong reputation and good customer service.
Inspect the car's history. Review vehicle history reports through Carfax or AutoCheck, and ask the dealership for the car's full history before buying.
Get an independent inspection. Have a third-party mechanic inspect the vehicle to ensure it's in good condition before purchase.
Set a budget. Determine your total budget, including down payment, monthly payments, insurance, and maintenance costs, before heading to the dealership.
Get Preapproved for a loan and negotiate Terms. Get preapproved for a loan and use your pre-approval to negotiate a better interest rate and loan terms.
Check your credit report and score. Review your credit history and score to make sure it's accurate and in good shape for securing a better loan.
Read the contract carefully. Always review the contract before signing to ensure all terms and costs are as promised and there are no hidden charges.
Conclusion
FAQ
How many days do I have to return a car?
Generally, once you’ve signed the contract and driven the car off the lot, returning it is not an option. Dealerships typically do not offer a return policy, especially for new cars. However, some used car dealers, like CarMax, provide a brief window - usually up to 10 days - during which returns are accepted. This, however, is rare and only applies to specific dealerships, so it's important to verify return policies before making a purchase.
How can I sell my car online?
You can sell your car online through platforms like Carvana or CarMax. These websites require you to provide details about the car, such as its make, model, mileage, color, condition, and history. Some services even offer to pick up the car from your home and provide you with a check immediately after the transaction.
How can I cancel an extended warranty or other extras I purchased with my car?
To cancel an extended warranty or any additional products, first, review your contract to understand the cancellation terms. If required, submit a written request and have your car's mileage verified. Be aware that dealerships may resist cancellations due to commission incentives, so it's often best to escalate the matter to higher management if needed. Keep detailed records of all communications and required documents. If you cancel within 30-60 days, you'll typically receive a full refund, though it may be prorated if canceled later, with possible processing fees.
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