Can You Return a Financed Car Back to the Dealer? 

Every day we receive calls from car buyers asking “can you return a financed car back to the dealer after signing a contract?” Depending on what happened, it IS possible to return a car to the dealer and cancel the contract, but in most states, there must be a compelling reason for returning the vehicle.

When is a Car Return Possible?

A car return is possible when the dealer has lied or deceived the buyer. For example, if the dealer lies about the condition of the vehicle, inflates the contract price above the advertised price, or lies about mileage, features, the condition of the engine, prior use, prior accidents, or deceives the buyer about financing terms, it may be possible to return the car to the dealer and cancel the contract.

Call our Auto Fraud Attorneys if this happened to you:

• You bought a car but ended up paying more than the advertised price
• You bought a car but it broke down soon after driving it off the lot
• You bought a car and ended up finding out that it had been in an accident, had a defect, or frame damage before you purchased it
• The dealer is unwilling to honor the warranty that came with the car
• The dealer is saying that your car repairs are not covered by the warranty due to an exclusion

“Everyone that helped prep and present my case was thorough and answered all my questions. Their response time is absolutely amazing. Very knowledgeable and a great strong team.”

-Lisa J 

Auto fraud encompasses a wide variety of illegal practices and dealership scams that hurt consumers. Fraudulent dealership practices cost consumers just like you millions of dollars in unnecessary repair fees each year.

Both new and used car fraud is on the rise as more vehicles are being sold by dealerships while the nation overcomes the most recent recession, and Consumer Action Law Group is helping consumers fight back.

How to Dispute a Car Return Policy

It is possible to dispute a car return policy even though car dealers generally say they will not accept returns unless you paid for a contract cancellation option in the contract.

Sadly, many dealers simply refuse to allow a car return for any reason unless a buyer signed the contract cancellation option in the contract and is returning the vehicle within 24-48 hours of the purchase.

In many cases, problems with the vehicle do not appear immediately, and many buyers have valid reasons for returning a vehicle, regardless of the dealer’s return policy.

If a dealer has lied about the condition of the vehicle, and if the dealer’s deception caused you to buy your vehicle, it is possible to return the car and get a full refund along with the cancellation of your contract.

These are some of the Frequently Asked Questions that our lawyers receive every day:

Can I return a car to a dealership if the dealer’s policy says no returns?

Yes, you can return a car to a dealership, even if the dealer’s policy says no returns. You will need proof that the dealer lied about the condition of the vehicle, the price, or the finance terms.

Can I return a used car within 30 days if the dealer’s policy says no returns?

Yes, you can return a car to a dealership within 30 days, or later, even if the dealer’s policy says no returns. Again, you will need proof that the dealer lied about the condition of the vehicle, the price, or the finance terms.

What Happens If I Don’t Get Financing In 10 Days?

If you fail to obtain financing in 10 days, the law states that the dealer becomes the financing party; meaning that you make payments to the dealership.

Can you return a used car you just bought?

Yes, you can return a car to a dealership, even if the dealer’s policy says no returns. You will need proof that the dealer lied about the condition of the vehicle, the price, or the finance terms.

How do I return a car to the dealership?

Before you return your car to a dealership, it is best to contact General Manager and the Finance Manager [in writing – email is fine] to arrange to sign contract cancellation forms and to get a refund [when appropriate].

What is voluntary surrender?

Some dealers will suggest a voluntary surrender for buyers that do not want to keep their cars. Voluntary surrender is making arrangements with the finance company to take back the vehicle – but NOT to cancel the amount owed.

In most cases, a voluntary surrender is NOT a good option for getting out of debt for a vehicle loan. Even after returning a car to the finance company, some or all of the debt will remain and your credit could be hurt by a lower credit score.

What happens after defaulting on a loan?

In general, defaulting on a loan hurts credit and makes it very tough to qualify for another loan. If you are not able to afford your loan, it’s a good idea to see if there may be a way to refinance the loan for lower payments.

After a default, it is possible for the dealer to repossess the car and collect any outstanding debt. Worst case scenario, if you know you cannot make your car payment, call the finance company and try to work out a deferment or a payment plan to avoid a repo.

To speak to our dedicated Auto dealership fraud attorneys, call (818) 254-8413 – The Consultation is Free!

Call Our Auto Fraud Attorney to:

• Get your money back
• Return your car to the dealer and get out of your contract
• Keep your car, but make the dealer pay for repairs or pre-existing damage

“I contacted this group in regard to an issue involving my vehicle. I felt very lost, frustrated and confused. I feel this group was able to help me find clarity as well as gather information in regard to my legal rights. They provided me with support to feel comfortable in making the decisions that best helped gather my situation together.”

– Nelson G.