How to Return a Used Car to the Dealer

Determining when and knowing how to return a used car to the dealer can be a difficult decision. It is important to know your rights when a problem arises after the purchase and you deduce to return a used car to the dealer. There are many helpful consumer laws aimed at helping buyers to get out of a contract before returning a used car to the dealer.

In most states, when a dealer or finance company engages in fraudulent practices, the buyer has remedies to revoke the contract and get a full refund. In California, for example, there is a vehicle code that protects car buyers from illegal practices, such as: 

• You bought a car and paid more than the advertised price
• You bought a car and it broke down soon after you drove off the lot
• You bought a car and later found out that it has been in an accident or that it is defective or has frame damage.
• You bought a car with a warranty that the dealer won’t honor, or you are being told that your repair is not covered due to an exclusion.

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.

The California Car Buyer’s Bill of Rights provides guidelines on how to return a car to a dealership. [The Bill does not apply to private sales between individuals.] In most cases, the process requires contacting the dealer to see if the problem can be resolved, then moving forward with a demand to cancel the contract and refund the amount paid. Many buyers are not able to resolve the problem without getting an attorney involved.

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

Can You Return a Car to the Car Dealership After You Buy It?

One of the top questions asked by car buyers is this – can you return a car after buying a car from a dealer? The answer depends on the terms of the contract and the reason why you want to return the vehicle.

Most people that call our firm have discovered that there is something wrong with the vehicle or the contract after the date of purchase, and they want the dealership to either fix the problem or tear up the contract and take back the vehicle. 

As a general rule, if the dealership did not tell the truth about the condition of the vehicle or the terms of the contract at the time of the sale, it may be possible to force the dealer to fix the problem or tear up the contract and take back the car. If you recently purchased a car and realized that there is a problem, it may be possible to return the car to the dealer.

So, how do you know if a car return is possible? That depends. After you sign the sales contract, the car is legally yours. However, dealers are required to make a correction within 30 days if they made a mistake or failed to disclose a problem with the vehicle. The dealership can also hold your car for up to 30 days to repair any defects. Otherwise, the vehicle can be deemed a lemon.

As a rule, the dealer has no obligation to work with you if you simply change your mind. Even if your circumstances change and the monthly payments are too high, or it is no longer the best vehicle for your needs, unless you can prove there is something wrong, you are essentially at the mercy of the dealer. If that is the case, the first thing that you should do is talk to the dealer to see what they can do to help you.

If the dealer doesn’t help and there is a real problem, you still might have recourse—especially if the condition of the car was misrepresented in some way. For example, if the dealer made promises about the vehicle that wasn’t true, then you might have a case for fraud. In this case, you could sue the dealer to get them to return the car if they refuse to resolve the issue. Your best bet is to speak with an auto fraud attorney to discuss the problem and possible solutions.

Call Our Auto Fraud Attorneys If Any of the Following Happened to You:

• You bought a car and paid more than the advertised price
• You bought a car and it broke down soon after you drove off the lot
• You bought a car and later found out that it has been in an accident or that it is defective or has frame damage
• You bought a car with a warranty that the dealer won’t honor, or you are being told that your repair is not covered 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

Can You Return a Car to the Car Dealership Within 3 Days?

So, you’ve just purchased a car and have buyer’s remorse. Can you return the car? Unfortunately, no. Many buyers wrongly believe that there is a “Three-Day Return Period” for automobile purchases. This is just a myth.

Although there is a Three-Day Cooling-Off Period for some consumer sales, this rule does not apply to cars. It only applies in a few particular situations, such as when buying something from a door-to-door salesperson. This is different from the cancellation option that dealers offer to car buyers as a means for car buyers to return the car within a short period of time after purchasing the car.

Here are additional situations where you might be able to return a car for dealer fraud:

• Odometer Fraud – The following could indicate odometer fraud: a low-mileage vehicle with old carpet and upholstery, replacement equipment on a low-mileage car, missing screws, or scratches that indicate dashboard replacement. If you suspect odometer fraud, talk with our auto fraud attorney.
• Salvage Fraud – A car that is salvaged is one that has been declared a total loss by the insurance company. If a vehicle is salvaged, the dealer must inform you. Look for the following signs of a salvaged auto: different colors of paint under the hood, weather stripping or fenders, dents and blemishes on the body, and replacement doors and hinges. Also, if the title says “salvaged” or “rebuilt,” then the dealer should have disclosed this to you during the sale.

If you notice signs of odometer or salvage fraud, you might be able to return the car that you just purchased—and recover damages. It is best to talk to an auto fraud attorney for guidance.

Contract clauses for car returns

Most contracts have a cancellation clause allowing for a car return when the buyer pays extra if they change their mind about the vehicle within 24-48 hours. When you buy a used car from a dealer and sign a cancellation clause, you can return it as long as you return it within the conditions of the cancellation agreement (read more: Laws of Buying a Used Car from a Dealer).

In California, licensed dealers must offer consumers who purchase a used car the option to buy a 2-day cancellation before they sign the contract. Once you purchase the option, you now have the right to cancel the sale for up to 2 days from the date of purchase.

However, there are certain conditions that must be met for you to return the used car to the dealer. Otherwise, the dealer may refuse your request for cancellation. Here are the conditions that must be met when you return the used car:

• Mileage must fall under what the contract allows (the contract must allow at least 250 miles)
• You must return the vehicle with all original paperwork
• The vehicle must be in the same condition as purchased
• The vehicle must be free of tickets or liens

Understanding the laws of buying a used car from a dealer can help car buyers avoid the many issues that may come up during the buying process.

Can You Give Your Car Back to the Finance Company?

You decided to splurge on a car that you can’t afford. The auto dealer was very persuasive—so against your better judgment, you decide to go ahead and sign the purchase contract. Now, several months later, you feel handcuffed to the car. You know that you cannot afford it and are not sure how you even got approved for such high payments. What are your options? Well.. that depends.

In most cases, if you give the car back to the dealer or finance company, you will not be off the hook. The creditor will not forgive the debt. They will sell the automobile and then sue you for the deficiency. There are a few situations in which you might be able to give a car back without a penalty, such as when the transaction involves fraud. There are several financing schemes that untrustworthy dealers use to defraud consumers.

Our auto fraud attorneys can help you return the used car to the car dealer if the car dealer lied about financing.

Returning a Used Car to the Dealer for Yo-Yo Financing

So, you buy a car, sign the paperwork and drive off the lot. Several days later, the dealer calls you to say that the financing has fallen through. They want you to come back in and sign a new contract. This is called yo-yo financing. If you are the victim of yo-yo financing, you might be able to return the car. It is best to talk to an auto fraud attorney for guidance in this case.

Returning a Used Car to the Dealer for Falsifying Loan Applications

If you were approved for a loan that you couldn’t possibly afford, you could be the victim of a falsified loan application or car loan fraud. Sometimes, unscrupulous dealers will fudge loan applications to get customers approved. If you were given an auto loan with no job or very little income, then you might want to talk to a lawyer to determine if the dealer lied on your loan application.

Returning a Used Car to the Dealer for Packing the Payments

Sometimes dealers will pack the loan by adding extra things that you did not ask for, such as warranties and GAP insurance. Afterward, when you try to sell the car, you are surprised to discover that your loan is “underwater” or you owe much more than the car is worth. This could be a sign of packed payments.

If you are the victim of any of the above auto fraud scams, you might be able to return the vehicle or sue the auto dealer or finance company for fraud and recover damages. You need to talk to an auto fraud attorney to learn exactly what rights you have.

Can a Car Dealership Cancel a Contract?

Imagine buying a new car, driving it home, and then receiving a call from the dealer telling you that the financing fell through. Can the dealer cancel your contract in this case? Surprisingly, the answer is yes. In most cases, the dealer can rescind the purchase contract but usually only within ten days.

This is called “spot delivery.” Dealers use this method to get you to agree to purchase a new car before you have a chance to change your mind. Be forewarned, though, that the financing is not set in stone with these types of deliveries and that it can fall through later.

If you read the “Sales Contract” carefully, it should note that the dealer has the right to rescind the contract within a certain number of days. This is legal. However, there are some practices associated with spot deliveries that are not legal. One of these shady practices is called “Yo-yo” financing. With yo-yo financing, the dealer will call you a week or so later to say that your funding fell through. They will ask you to come back to the dealership to sign a new financing contract.

Usually, the terms of the new agreement will be unfavorable. The interest rate may be higher or the loan term longer. This practice is deceptive. Don’t sign the financing contract if the conditions aren’t in your favor. Instead, contact an auto fraud attorney for advice. You might have grounds to file an auto fraud lawsuit.

How Do I File a Complaint Against a Car Dealership?

Were you deceived by a car dealership? Sadly, some used car sales involve deception or fraud. The annual value of auto fraud may be as high as $6 billion this year. You have rights when it comes to buying a car. If the dealer engaged in a deceptive or fraudulent practice to persuade you to buy a vehicle, then you can file a complaint against them. Here are the steps:

• Sue the dealer with the help of an auto fraud attorney – If you have talked to the dealer and tried to resolve your complaint to no avail, and the amount in dispute is MORE than $10,000.00 the next step would be to contact our auto fraud lawyer to determine if you have a case for a lawsuit.
• Sue the dealer in small claims court – If you have talked to the dealer and tried to resolve your complaint to no avail, and the amount in dispute is less than $10,000.00, the next step would be to contact our auto fraud lawyer to determine if you have a case for a lawsuit that you can file yourself.
• File a complaint with your state’s consumer protection agency – If you’ve exhausted your options with the dealership directly, you may file a complaint with your state’s consumer protection agency. The number to call varies by state, but you can find your state’s information here.

How Do You Write a Letter of Complaint to Return the Car to the Dealership?

If you just purchased a new car and felt that you’ve been lied to by the dealer, the first step is to file a complaint with the auto dealer. There is a right way and a wrong way to complain. It won’t be helpful to launch an attack on the dealer. It will just fall on deaf ears. The best way to protest is to write a letter of complaint.

Here is a template for a complaint letter. It describes the problem and gives the dealer options for resolving the issue. This letter gets right to the point. You can write the letter yourself or ask an auto fraud lawyer to write it for you.

What is the FTC Used Car Rule?

The Federal Trade Commission’s Bureau of Consumer Protection established the Used Car Rule in 1985 to protect consumers when purchasing a used car. Used car dealers that sell more than five cars in a 12-month period must stay compliant with the Used Car Rule. This Rule applies in all states—except Wisconsin and Maine. The Used Car Rule even protects consumers in Puerto Rico, the District of Columbia, American Samoa, and the U.S. Virgin Islands.

The Used Car Rule requires dealers to display a window sticker or Buyer’s Guide on used cars for sale. The sticker or Guide specifies whether or not there is a warranty on the automobile. If there is a warranty, the Guide provides the terms and conditions.

In January of 2017, the Used Car Rule was changed to make it more transparent to consumers precisely what “as-is” means. The new law states that the Buyer’s Guide must now say: “The dealer does not provide a warranty for any repairs after the sale.”

Free Legal Advice to Return a Used Car to the Dealer

If you want to learn more about laws about returning your car to the car dealership, talk to our auto attorneys in Los Angeles. We offer free legal advice and can tell you your best options. We will also be able to tell you if the car dealership has committed any fraud or scams.

Check out these articles for additional information:

• The 10-Day Rule In Auto Financing Explained | Can a dealership take a car back after a month?
• Car Dealer Lied About Financing – What to Do | What to do when a car dealer lied to you