Can you return a car you just bought?

What is a cooling-off period when you purchase a car?

A cooling-off period refers to a specific timeframe in which you can cancel the purchase of a vehicle without facing penalties or losing the initial payment you made to the auto dealership. Note that car dealerships are under no legal obligation to offer a cooling-off period, so it may be a good idea to ask your salesperson about a return option before you make the purchase.

If a dealership offers a cooling-off period after a sale, it can last any length of time that the dealership chooses. You may be able to negotiate a cooling-off period into your contract to close a deal when buying a car.

What are common reasons for returning a car?

Whether you can return the car depends on the situation you're in. Here are some scenarios:

You don't think you got a fair deal

If this is the case, try contacting the car dealership manager and calmly explain your situation. While they aren't legally obligated to do anything once you've signed the contract, the two of you may be able to reach an agreement.

Something's wrong with the car

Can you return a vehicle to the dealer within 30 days if it has a mechanical issue? Chances are you can, and you probably won't be limited to just 30 days. Each state has its own version of a "lemon law" that essentially says you can return a car to the dealership if it develops a serious problem that makes it unsafe to drive. Check with your state to see what they define as a lemon. Once a car is declared a lemon, the dealership has a reasonable opportunity to repair the problem — the specific number of days will vary by state.

If they can't fix the problem in a way that makes it safe for you and your passengers, they owe you a refund or a replacement. Learn more about what happens if you buy a lemon car.

You don't like the car

Car dealerships generally won't see this as a good enough reason to take back the vehicle unless they previously agreed to a cooling-off period. To avoid getting into this situation, take your time deciding, and take the car on multiple test drives before signing a contract.

The likelihood of being able to return a car also depends on whether it's a new or used vehicle. Car dealerships are much more likely to take back a used vehicle. This is because a new car is no longer "new" as soon as you drive it off the lot. If the dealership takes back the car, they need to sell it as a used vehicle, and may lose money on the transaction.

How long do you have to return a new car?

There isn't a clear-cut answer to how long you have to take back a new car. If your contract allows for a cooling-off period, it should state exactly how long that lasts — a few days to a week is common. However, if you're filing a lemon law claim, you need to return the vehicle to the dealer to allow them an opportunity to fix it. Each state has guidelines about how long you have to file a claim after purchasing a car that you deem to be a lemon. This can stretch anywhere from a few months to a few years, depending on where you live.

If you're planning to return a newly purchased car that you've yet to pick up from the dealership, contact the dealership, and start the return process as soon as possible. You may have a much easier time if you request to cancel a sale before your paperwork has reached the DMV and you pick up the car. If you're unable to return the vehicle, you can trade in a car you just bought.

If you sign a contract for a car, can you get out of it?

When you sign a car dealer contract, how binding is it? Contracts are intended to be legally binding; by signing the contract, you agree to the terms stated within it. Most buyers who sign a car purchase agreement aren't easily able to get out of it, but there are a few possible exceptions:

• Your lender doesn't approve the car loan: Some car dealers allow for something called a "yo-yo sale," in which they let you take the car home before you have approved financing. If your loan is denied, the dealer will likely void the contract and require that you return the car.
• The vehicle fails inspection: You may be able to get out of a contract if a problem quickly arises with the car that wasn't disclosed to you before you signed the contract.
• The salesperson was dishonest: If the salesperson persuaded you to sign the contract by giving you false information, you might be able to get out of it. Schedule a meeting with the dealership manager, and if it still needs to escalate, consult with a lawyer.
• You're leasing a car: Cars leases are for a specific amount of time, which the contract lays out. Most dealerships allow customers to cancel a lease early — but note that this may incur a hefty penalty. Learn more about how to get out of a car lease.

Does returning a new car impact insurance?

Returning a new car may change your auto policy's rate and coverages. Notify your insurer or agent immediately after you return the car so that your policy can be updated.

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