Key takeaways
- You typically cannot return a car unless the dealership has a return policy.
- To avoid being in a position where you need to return the car, research the history of the vehicle and the dealership’s policies.
- If you cannot return the car, look into refinancing for lower monthly payments or selling the car.
If you’ve purchased a new or used car and have second thoughts, you usually cannot return it. The dealer that sold you the vehicle is not legally obligated to take it back, issue you a refund or offer an exchange after you’ve signed the sales contract.
However, there are exceptions to this rule. Some dealerships may allow you to return the vehicle under specific circumstances. If the car has major mechanical issues, the dealership may be legally required to accept a return. Still, it’s better to avoid having to return a car in the first place.
Can you return a car if…
There are just a few cases when you can return a car you just bought. If it was an illegal transaction, or you cannot afford it, you may have options.
You got ripped off?
If you feel like you fell prey to common dealer tricks, consider meeting with the dealership manager. Bring documentation to corroborate your claim that you were wronged.
For example, if you believe the dealer overcharged, present evidence of the vehicle’s fair market value from a reputable source, like Edmunds or Kelley Blue Book, to support your argument.
Present your case to the manager calmly. Remember that, since you’ve already signed the contract, your options are limited.
You have other options as well, including:
- Contact your state attorney general’s office to discuss your options.
- File a complaint with the Better Business Bureau.
- Hire an attorney to sue the dealership.
- Leave a bad review on the dealership’s website.
- File a complaint with your state’s consumer protection agency or the Federal Trade Commission.
Bankrate insight
To research whether you’ve paid an unfair amount, you can look up the value of cars with the same make, same model and similar mileage on Kelley Blue Book or Carfax.
Your car payments are too high?
You’ll have difficulty making your case if you want to return your car because your monthly car payments are too expensive. The dealership’s general manager could argue that you should have determined whether you could afford the car before buying it.
It’s up to the dealership whether you can bring back the car and exchange it for something more affordable. Speak with the salesperson who sold you the car first. If that doesn’t work, contact the sales manager or the dealership’s general manager.
Once you’ve exhausted those options, look into other methods to lower your monthly payments. Refinancing your auto loan with a lower interest rate or a longer term can lower your monthly payment.
Bankrate insight
Use an auto loan refinance calculator to see how much money you could save and compare different loan options.
Your car is a lemon?
To build a case for returning a car that doesn’t run properly, gather documentation on the mechanical problems you’ve experienced. You may need multiple trips to the dealer’s service department. Ensure your complaints are noted in detail on all repair orders.
If the problem still hasn’t been fixed, you may determine your car is a lemon — a vehicle beyond repair. Laws vary from state to state. You’ll have to research to see whether you can make a legitimate lemon law claim. In most states, lemon laws only apply to new vehicles with a serious defect impairing your ability to drive it.
You can research the laws in your state on the Center for Auto Safety’s website, which outlines each state’s required actions and timeline for returning a car under lemon laws. You can secure a refund or comparable vehicle exchange upon a successful claim.
Limitations apply, and these laws may not provide much relief in your situation.
Bankrate tip
You may be entitled to reimbursement of your attorney fees if you hire an attorney to help make your case. Be sure to keep track of your legal fees during the process.
You changed your mind?
Dealers do not generally find buyer’s remorse persuasive. Very few dealerships have a return policy. Once you sign the sales contract, you’re responsible for paying the note as promised.
Although the FTC has a “cooling-off rule” — a rule where you have three days to cancel a sale made at your home, workplace or seller’s temporary location — a vehicle purchase is among its exceptions. Even if a dealership sells you a car at a temporary location, the rule still applies as long as they have a permanent location.
Some states also have a “right to cancel” period that lets you return the car within a certain time frame without incurring any penalties or damage to your credit profile. However, the vehicle must be in the same condition as when you purchased it. Other limitations often apply.
Bankrate tip
Try and avoid this scenario by researching ahead of time. Follow these 10 steps to find the best car for you before signing off on a new vehicle.
Your dealer has a return policy?
A few dealerships have return policies. For example, CarMax has a 30-day return policy, and Carvana is famous for its seven-day money-back guarantee. If you don’t like the car you purchased, you can exchange it for one you like or get a refund.
In addition, some dealerships have exchange programs where you have a limited number of days to exchange the vehicle. Remember that excessive depreciation or putting too many miles on the car could prevent you from returning it.
Bankrate tip
Always get a dealership’s return policy in writing. That way, you’ll understand the terms and conditions and can navigate any attempt to deny your claim.
How to avoid returning a car
If you want to avoid the difficult process of returning a car, you should properly prepare to purchase a car. This process involves several steps:
- Read car reviews about the make and model you are considering on websites like Consumer Reports.
- Perform price research using Kelley Blue Book or Carfax, compare auto loan rates and test-drive the vehicle.
- Research dealerships in advance by reading online reviews. Use sites like the Better Business Bureau (BBB) to ensure dealerships have a good reputation and exceptional customer service.
- Investigate the history and condition of the specific car you’re considering purchasing. You can begin by reviewing history reports for the vehicle via sites like Carfax or AutoCheck, where information on the vehicle can be accessed using its vehicle identification number. If you’re purchasing a car from a dealer, ask the dealership to provide the car’s history for your review.
- Take the car to be inspected by an independent mechanic. They can provide an unbiased assessment of the car and any issues it may have. If the mechanic discovers mechanical problems, ask the seller to foot the repair bill.
Alternatives to returning your car
If you can’t return your car, there are ways to get out of an auto loan, like choosing to refinance your loan, selling your car it privately, trading it in at a dealership or arranging for voluntary repossession.
- Refinance your auto loan. If your monthly payments are too high, you can refinance your car loan by extending your term or securing a lower interest rate. Before taking this step, be aware of lenders’ loan and vehicle requirements. In addition, you should compare refinancing rates carefully to determine if this will actually save you money.
- Sell it. By selling your car to someone else, you can get out of being stuck with a car you don’t like. You might be unable to recoup the full amount you paid because a car depreciates as soon as it’s driven off the lot. If this is the case, you will be responsible for paying the difference between the amount you financed and the sale price of the vehicle.
- Trade it in. If you don’t want to go through the hassle of a private sale, you can also trade in your vehicle with the same dealership or a different dealership. This will likely also leave you paying the difference, but it can help you get out of a bad purchase.
- Ask for voluntary repossession. If you can’t afford the monthly payments, you could call the lender and ask for a voluntary repossession. Think twice before taking this action. A lender can still report the repossession to the credit bureaus. Repossession negatively impacts your credit score for up to seven years, making it more expensive to take out a future auto loan. A lender may also refuse to repossess a car.
Bottom line
Instead of wondering whether you can return a car, be proactive about your purchase. Before you buy a car, spend some time researching the price of cars you like and reading the dealership’s return policy and car reviews. Failing to research could leave you stuck with a car. In most cases, you can’t return a car you just bought. Most dealerships won’t allow it.
If you cannot return a car, there are other ways to get rid of it. You can sell it or file a lemon law claim under certain circumstances. Alternatively, after a few months of making payments, you can refinance the auto loan.
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