Brai is the founder of SW4 Insights, a public policy advisory firm based in Washington D.C. He has over a decade of experience as a journalist and consultant covering finance and economic policy, with a particular focus on distilling complex topics t.
Brai Odion-Esene ContributorBrai is the founder of SW4 Insights, a public policy advisory firm based in Washington D.C. He has over a decade of experience as a journalist and consultant covering finance and economic policy, with a particular focus on distilling complex topics t.
Written By Brai Odion-Esene ContributorBrai is the founder of SW4 Insights, a public policy advisory firm based in Washington D.C. He has over a decade of experience as a journalist and consultant covering finance and economic policy, with a particular focus on distilling complex topics t.
Brai Odion-Esene ContributorBrai is the founder of SW4 Insights, a public policy advisory firm based in Washington D.C. He has over a decade of experience as a journalist and consultant covering finance and economic policy, with a particular focus on distilling complex topics t.
Contributor Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
| Loans & Mortgages Editor
Updated: Jun 9, 2022, 12:42pm
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Buying a car can be a big decision, and unfortunately, some buyers end up regretting their purchase. In most cases, you won’t be able to return a car you just bought. However, there are some special situations that might entitle you to a replacement car or a refund.
Typically, no. Dealers generally don’t accept returns—and they usually aren’t obligated to give you your money back if you signed a purchase agreement.
You might have more luck returning a used car compared to a new car, but even then, it will depend on your situation.
The Federal Trade Commission (FTC) has established the “Cooling-Off Rule,” which gives consumers three days to cancel certain sales made at:
This rule doesn’t cover all types of sales, though. You typically can’t return cars, trucks, vans or other motor vehicles as long as the seller has at least one permanent location.
This means that while buying a car has increasingly become an online activity with no need to visit a physical showroom, federal and state laws generally don’t provide legal protection for consumers who regret buying a car.
While a case of buyer’s remorse generally won’t qualify you for a return, here are some situations where you might be able to get a refund or a replacement car:
A car is described as a “lemon” when it has at least one manufacturing defect that substantially impacts its safety, value or usefulness and that you didn’t know about before purchasing. Additionally, the dealer must have made a certain number of repair attempts that have failed to fully resolve the issues. For example, four repair attempts is considered the reasonable number in Connecticut and New York.
Every state has its own lemon laws, so you’ll need to check the requirements for your state. Keep in mind that these laws usually apply only to new cars but can also cover used vehicles in some states.
If you think you have a lemon on your hands, be sure to maintain detailed records of repairs—including what fixes were attempted and when—with copies of every repair bill. This is because you’ll have to prove the car was defective when you bought it before the dealership will agree to exchange the vehicle or give you a refund.
In some states, car dealers are legally obligated to provide the option to cancel a sales contract. For example, California’s Car Buyer’s Bill of Rights, which applies to purchases of new or used vehicles from licensed dealers, requires dealers to offer a two-day cancellation period to buyers of used cars that cost $40,000 or less.
A dealer might describe this right to cancel as a “cooling-off” period, a money-back guarantee or a “no questions asked” return policy. To qualify, you’ll generally need to return the car in the same condition as you purchased it with your original paperwork. If you don’t, the dealer might deny your request.
You can check with your state attorney general to see if a “right to cancel” option is available and what the requirements are.
While most dealers don’t have return policies, some do. For example, Carvana provides a seven-day money-back guarantee, while CarMax accepts returns within 30 days. Before buying a car, be sure to ask the dealership about their return policy, and if they offer one, get it in writing.
In most cases, you won’t be able to return a car you just bought. Here are some scenarios where you likely won’t qualify for a refund:
If you simply changed your mind, the dealer likely won’t allow you to return the car. Keep in mind that most dealers don’t have return policies, so once you’ve signed the sales agreement, you’re out of luck outside of special circumstances.
Before buying a car, it’s important to do your research to see what a fair and reasonable price is for the vehicle you’re considering—especially since you likely won’t be able to return it if you pay too much.
If you feel like you’ve been ripped off, it could be worth meeting with the manager of the dealership to see if an adjustment can be made to your agreement. Be sure to bring documentation to back up your case and stay calm while discussing the situation. Remember that if you’ve already signed a contract, the manager might not honor your request without substantial proof that you’ve been wronged.
Before you borrow money to finance a car, it’s critical to make sure the payments will fit comfortably into your budget. Use the Forbes Advisor auto loan calculator to estimate your monthly payments before you apply for financing.
If you don’t consider what you can reasonably afford, the dealer is under no obligation to help you—and might even argue that your finances are your responsibility alone. You can reach out to the dealership to see if you can exchange the car for something less expensive, but don’t be surprised if the answer is no.
Unfortunately, it can be pretty difficult to return a car you just bought. If you aren’t able to get a refund, here are some other options to think about:
Get up to 4 loan offers in minutes at myAutoloan.com.
