Can you return a car you just bought? What to do about buyer’s remorse

Main points

• Unless the dealer has a return policy, you generally can’t return an item.

• To avoid you needing to return your car, research the vehicle’s history and the dealer’s policies.

• If you can’t return your car, consider refinancing your car loan, selling the car, or trading it in.

If you purchased a new or used car and are reconsidering it, returns are generally not possible. The dealer has no legal obligation to accept returns, refunds or offer exchanges after you sign a sales contract.

However, there are exceptions to this rule. For example, if the car has major mechanical issues, the dealer may be legally required to accept a return. Some dealers may also allow you to return the vehicle under certain circumstances. However, this is not guaranteed. It’s best to avoid returning the car in the first place.

Can you return the car if…?

There are only a few circumstances where you can return a car you just purchased. If this is an illegal transaction, or you cannot afford it, you may have other options.

Have you changed your mind?

Dealers often find buyer’s remorse unconvincing. Very few dealers have a return policy. Once you sign the sales contract, you are responsible for paying the note as promised.

Although the Federal Trade Commission has a “cooling-off rule”—that you have three days to cancel a sale that takes place at your home, workplace, or the seller’s temporary location—car purchases are the exception. Even if the dealer sells you the car at a temporary location, this rule still applies as long as they have a permanent location.

Some states also have “right-to-cancel” periods that allow you to return the car within a certain period of time without incurring any penalties or harming your credit profile. However, the vehicle must be in the same condition as when you purchased it. There are often other restrictions.

Is your car payment too high?

If you want to return the car, you’ll have a hard time making the case because the monthly car payments are too expensive. The dealership’s general manager may argue that you should determine whether you can afford the car before buying it.

It depends on the dealer whether you can return the car and exchange it for a cheaper one. Contact the salesperson who sold you the car first. If this does not work, please contact the Sales Manager or Dealer General Manager.

Once you’ve exhausted these options, consider other ways to lower your monthly payments. Refinancing your car loan with a lower interest rate or longer term can lower your monthly payments.

Did your financing fail?

Some dealers will let you take the car away before financing is complete. If you are subsequently denied a car loan, the purchase agreement is no longer valid unless you are able to find alternative financing. In this case, the transaction is over and you must return the vehicle.

This is common when the dealer offers cash delivery (also called contingent financing) through one of its affiliated lenders. This arrangement allows the buyer to own the vehicle subject to loan approval, but if the proposed terms change, you are not obligated to accept the financing and can return the car.

Have you been cheated?

If you feel like you’ve fallen into a trap of common dealer tactics, consider meeting with the dealer manager. Bring documents to support your claim that you have been wronged.

For example, if you believe the dealer is overcharging, provide evidence of the vehicle’s fair market value from a reputable source, such as Edmunds or Kelley Blue Book, to support your argument.

Calmly present your case to your manager. Because you signed a contract, your options may be limited. Still, there are some things you can do to deal with predatory behavior, including:

• Please contact your state’s Attorney General’s Office to discuss your options.

• Hire an attorney to sue the dealer.

• Leave a negative review on the dealer’s website.

• File a complaint with the Better Business Bureau (BBB).

• File a complaint with your state’s consumer protection agency.

• File a complaint with the Federal Trade Commission (FTC).

Is your car a lemon?

To build a case for returning a car that isn’t running properly, gather documentation about the mechanical problems you’re experiencing and be sure to detail your complaints on all repair orders. You may need to make several trips to the dealer’s service department to build your case.

If the problem remains unresolved, you may determine that your car is a lemon—a vehicle that cannot be repaired. Lemon laws vary from state to state. You must research whether you can make a legitimate lemon law claim. In most states, lemon laws only apply to new cars that have serious defects that impair your ability to drive.

You can research your state’s laws at the Center for Auto Safety’s website, which outlines the actions and timelines required to return a car under lemon laws in each state. If your claim is successful, you can receive a refund or a similar vehicle replacement.

• Thirteen states have lemon laws for used cars

There are limitations, and these laws may not provide much relief in your situation.

Bank interest rate tips

If you hire an attorney to help you with your case, you may be entitled to reimbursement of your attorney’s fees. Be sure to keep track of your legal fees during this process.

Does your dealer have a return policy?

Some dealers have a return policy. For example, CarMax has a 30-day return policy, and Carvana is known for its 7-day money-back guarantee. If you don’t like the car you buy, you can exchange it for one you like or get a refund.

Additionally, some dealers have exchange programs where you can exchange your vehicle for a limited time. Keep in mind that excessive depreciation or excessive mileage may prevent you from returning the car.

Bank interest rate tips

Be sure to obtain the dealer’s written return policy. This way you will understand the terms and conditions and be able to respond to any attempts to deny your claim.

How to avoid returning your car

If you want to avoid the difficult process of returning your car, you should be prepared to buy one. This process involves several steps:

1. Read car reviews on sites like Consumer Reports for the make and model you’re considering.

3. Research dealers ahead of time by reading online reviews. Use sites like the BBB to ensure the dealer has a good reputation and excellent customer service.

4. Research the history and condition of the specific car you’re considering buying. You can start by checking your vehicle’s history report through sites like Carfax or AutoCheck, where you can use the vehicle identification number to access vehicle information. If you purchase a car from a dealer, ask the dealer to provide you with the car’s history.

5. Take your car to an independent mechanic for inspection. They can provide an unbiased assessment of the car and any issues it may have. If the mechanic discovers a mechanical problem, ask the seller to pay for the repairs.

Alternatives to returning the car

If you can’t return your car, there are several ways to get out of your car loan, such as choosing to refinance the loan, selling your car privately, trading it in at a dealership, or arranging a voluntary repossession.

• Refinance your car loan. If your monthly payments are too high, you can refinance your car loan by extending the term or securing a lower interest rate. Before taking this step, understand your lender’s loan and vehicle requirements. Additionally, you should carefully compare refinance rates to determine whether it will actually save you money.

• Sell ​​it. By selling your car to someone else, you can get rid of a car you don’t like. You may not get back the full amount you paid because the car loses value as soon as it’s driven off the lot. If this is the case, you’ll be responsible for paying the difference between the amount you finance and the vehicle’s selling price.

• Make a transaction. If you don’t want to go through the hassle of a private sale, you can also trade in your vehicle at the same dealer or a different dealer. This may also cost you a price difference, but it can help you get away from a bad purchase.

• Request voluntary repossession. If you can’t afford your monthly payments, ask your lender for a voluntary repossession. Please think twice before taking this action. Lenders can still report repossessions to credit bureaus. A repossession can negatively impact your credit score for up to seven years, making future car loan applications more costly. The lender may also refuse to repossess the car.

bottom line

Instead of wondering if you can return the car, be proactive about your purchase. Before buying a car, take some time to research the price of a car you like and read the dealer’s return policy and car reviews. If you don’t do enough research, you could be stuck in your car. In most cases, you cannot return a car you just purchased. Most dealers don’t allow it.

If you can’t return your car, there are other ways to get rid of it. In some cases, you may be able to sell it or file a lemon law claim. Alternatively, you can refinance your car loan after a few months of payments.