{"id":352650,"date":"2016-04-04T10:42:05","date_gmt":"2016-04-04T15:42:05","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/lemon-law\/how-to-get-out-of-a-car-purchase.html"},"modified":"2024-05-07T12:56:51","modified_gmt":"2024-05-07T17:56:51","slug":"how-to-get-out-of-a-car-purchase","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/lemon-law\/how-to-get-out-of-a-car-purchase.html","title":{"rendered":"Getting Out of a Car Purchase: Is There a Cooling-Off Period?"},"content":{"rendered":"\n
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Getting Out of a Car Purchase: Is There a Cooling-Off Period?<\/h1>\n
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\n By Natalie Moritz<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

If you want to cancel a car purchase, your first thought may be to invoke the federal "cooling-off rule." But this rule, which allows consumers to cancel certain sales transactions<\/a> within three days to protect against high-pressure sales tactics, does not cover car purchases.<\/p>\r\n

While negotiating with a car dealer can be a high-pressure situation<\/a>, a new motor vehicle loses tremendous value the moment you drive it off the lot. Allowing a cooling-off period would force dealers to sell virtually new cars at sharply reduced resale prices.<\/p>\r\n

Car Purchase Contracts and Cancellation Agreements<\/h2>\r\n

Instead, car buyers should fully understand the contract terms<\/a> before signing a purchase agreement. This includes optional fee-based cancellation agreements.<\/p>\r\n

Some state laws require dealers to offer extra protections for used car buyers<\/a>. These protections serve as incentives to buy.<\/p>\r\n

For example, California car dealers must inform you about contract cancellation option agreements<\/a> for used cars costing less than $40,000. These agreements, which cost between $75 and $400 depending on the purchase price, allow you to return the vehicle within two days if you wish to cancel the sale.<\/p>\r\n

Defective Motor Vehicles and Illegal Sales Tactics<\/h2>\r\n

Most other protections for car purchases apply only to defective automobiles<\/a> or illegal sales tactics.<\/p>\r\n

In Massachusetts, the Failed Inspection Lemon Law<\/a> allows you to cancel a vehicle purchase contract if it fails an inspection within seven days from the date of sale. To be eligible for a refund, the repair cost must exceed 10% of the purchase price.<\/p>\r\n

Lemon Law Protections for Vehicle Defects<\/h3>\r\n

Lemon laws<\/a> cover new vehicles (and some used vehicles) with substantial defects that remain unresolved after a reasonable number of repair attempts. While they don’t offer a way for buyers who simply change their minds, these laws do offer protections against defective vehicles.<\/p>\r\n

The Magnuson-Moss Warranty Act<\/a> is a federal law protecting most consumer purchases under a written warranty\u2014including new vehicle warranties. States also have individual lemon laws applying specifically to vehicle purchases.<\/p>\r\n

For example, Florida lemon law<\/a> requires consumers to first report a defect to the dealer or manufacturer within 24 months of taking delivery. If the dealer is unable to fix the car after three attempts, the consumer must contact the manufacturer. The manufacturer then has 10 days to direct the consumer to an independent repair facility. If the car is not fixed by the third-party repair facility within 30 days, the consumer may seek a refund or a replacement vehicle.<\/p>\r\n

Lemon vehicle<\/a> refunds vary by state but usually include the full purchase price in addition to:<\/p>\r\n