What Are Your Rights When Unwinding A Car Deal?

Unlike other consumer products, where you can return the purchased item for a refund, it is not easy to return a car after it has been purchased. That's because there are no policies that allow you to go back on the deal Hence your rights when unwinding a car deal are highly limited as it is more likely that you won’t be able to return it.

But what if you discover that the price you paid for your car is too high, it’s not exactly what you wanted, and are now wishing you did some research before buying? Is it still possible to go back on the deal and return the car?

Although it is unlikely, there are situations where a dealership may be willing to unwind the deal or at least provide an acceptable alternative.

Conditions Where You Could Return Your Car

The Dealership Has A Return Policy

Some dealerships, out of goodwill, give you the option to return your car even though it is not a requirement. This may however be subject to some conditions, such as the vehicle not exceeding certain mileage or sustaining damage. There may also be a time frame during which you can return the car. 

You Feel You Have Been Misrepresented

If you feel the dealership misrepresented the car or the terms of financing, you have a valid reason to return the car. In any case, you will need supporting documents to prove that you have been misrepresented.

You Have Been Sold A Lemon

If a car has problems that persist after multiple fixes, it is a lemon and may be covered by the lemon law. The lemon law requires dealerships to provide repairs if the problems occur during the warranty period and must replace the car or unwind the deal if the problem persists after a specific number of fixes. The lemon law, however, does not cover used cars in most states.

You Have Buyer’s Remorse

Although buyer’s remorse is not an acceptable reason to return a vehicle, you can plead with your dealership in such situations. Maybe the payment is too high for your budget, your financial situation has changed, or the car isn't right for you. You can reach out to the dealership and explain your reasons, but it is up to the dealership to decide what solutions they are willing to offer.

Does The Federal Cooling-Off Rule Apply To Car Deals?

The Cooling-Off Rule gives buyers a three-day period to cancel sales that occur in their homes, workplace, or at a temporary location. 

The rule, however, does not cover the sale of cars as it explicitly states that the sale of cars and other automobiles by dealerships that have at least one permanent place of business isn't covered, whether sold at a temporary place or not. Also, purchases that are made after going through negotiations and at the seller’s permanent place of business aren’t covered.

Alternatives To Returning A Car

Due to the difficulties involved in returning a car, consider choosing one of the following alternatives should you feel the need to return your car.

Consider Selling Or Trading In Your Car

If the car does not suit your needs, it isn’t actually what you wanted, or you have buyer’s remorse, you can choose to sell it and use the money to pay off the loan or trade it in for one that meets your needs. The downside is that you may lose some of your car's value due to depreciation. However, it is worth taking the decision if keeping your current vehicle is becoming a burden.

Consider Refinancing Your Car Loan

Consider refinancing your car loan if the cost of the car or the interest no longer fits your budget. Your dealership or lender may be willing to replace your current loan rate with a lower rate or extend the loan term. Again, the downside is that you will end up paying more interest over the life of the loan even though your monthly payments will decrease.

Request For Repossession

If keeping your car is becoming a liability rather than an asset, you can ask your dealer or lender to repossess the car. Although this can impact your credit score, working closely with your lender or dealership on the voluntary repossession will have less impact. Keep in mind that you will be required to pay the rest of the loan if the repossession does not cover the total cost of the loan.

Summary

You have limited rights when it comes to unwinding a car deal. But depending on the situation, you may be able to pressure a dealership to endure the hassles of unwinding the deal. 

That being said, it is best to avoid the need to return a car in the first place. By conducting your research, reading the sales contract carefully, and making sure you are happy with the car as well as the terms of financing, you can avoid such situations altogether.

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