SHOPSMART AUTOS – CUSTOMER INFORMATION – FEBRUARY 16, 2021

CANCELLING A VEHICLE CONTRACT? Can a Buyer Cancel a Car Dealership Contract? Can a buyer cancel a car dealership contract? The answer is sometimes, but there’s more to it than that. The more you understand about car buying contracts the more confidence you can have at the dealership. Buying a new car can be an exciting time. Heading to a dealership to test drive a new vehicle for you or your family can be exciting, and that can lead to a lapse in judgment. So, what happens when you sign a buying contract for the car, but realize it may not be the best fit for you the next day?
Getting Out of a Car Purchase
One thing many people try to rely on when trying to cancel a car buying contract is a cooling-off period. A cooling-off period is something written into sales contracts that can protect the buyer in cases of high-pressure sales tactics. Many people consider shopping at a car dealership a high-pressure sales environment, 
however, Edmunds indicates there is not typically a cooling-off period for car purchases
. Part of the reasoning for this is the value of the car. If a cooling-off were required by dealerships, they would be forced to sell practically brand-new vehicles for a fraction of the price and would likely be unable to sustain operations. Because of how car valuation works, there is not a cooling-off period required as part of a car buying contract. If you signed your name on the dotted line for a new vehicle, it will be very difficult to return it or cancel it in most cases. This could be a different story if you’re shopping for a used vehicle in-which a dealer may allow you to return the vehicle after a short period of time. Findlaw indicates that what’s called a 
contract cancellation option
 may be available to you. This addition to a sales contract may be available at an added cost to the buyer, but if it’s something you feel like you might need, then it’s worth asking for. The dealership is still under no obligation to offer such an addendum to buying contracts unless certain states require it. Some states, such as Massachusetts, have other protections in place to help protect buyers from cars in poor condition. For example, if someone in Massachusetts purchases a car and it fails a safety inspection within seven days of the purchase, the buyer is allowed to return the car for a full refund. Check your state’s local laws to see what protections car buyers have before trying to negotiate with a dealership as it’s sure to be less of a headache. Other similar protections include lemon laws that protect buyers from defects that the dealer is unable to repair. Lemon laws provide a wider net of protection. In Florida, for example, a buyer is covered for up to 24 months after the purchase of a new vehicle:
  • A dealership has three attempts to fix the issue and return it to the buyer.
  • If the dealership is unable to complete the repairs, the buyer must then contact the manufacturer.
  • The manufacturer then has 10 days to direct the buyer to a third-party repair shop.
  • If the independent repair shop is unable to make the necessary repairs after 30 days, the buyer is entitled to request a refund.


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Shop Smart Autos is not responsible for any errors in price or vehicle information provided to us from our dealer partners. We take every precaution to ensure the information is accurate and correct. Any questions please contact the dealer.