Most states, the answer is no. Once you sign it - the deal is done. Now if you never receive the car, or they never receive the title - the bank may cancel the loan and take the money back from the dealership, but barring some sort of suspect activity once you sign a finance agreement - you are stuck.
There's no ``way out'' of a car loan. You signed a contract and it's not in anyone's interest to let you change your mind now. The only way out is to pay off the whole loan amount, and then keep the car as long as you can.
Either party can back out of a car deal until the sales contract is signed. Once the contract is signed it is final. A dealer would not likely be able to alter than contract as they are assumed, under law, to be professionals. As such they are not expected to make ``mistakes.''
Losing your car can hurt your credit quite a bit unfortunately. Having your car repossessed or surrendering it voluntarily is seen as a major negative event by lenders. They'll view you as high-risk. Expect your credit score to take a big hit, maybe over 100 points or more.
There isn't a clear-cut answer to how long you have to take back a new car. If your contract allows for a cooling-off period, it should state exactly how long that lasts — a few days to a week is common.
Does voluntary repossession hurt your credit? Voluntary surrender counts as a derogatory or negative mark and will stay on your credit reports for up to seven years. This stain on your credit reports might prevent you from being approved for new credit and your terms, like interest rates, will likely be higher.
If you've purchased a new or used car and have second thoughts, you usually cannot return it. The dealer who sold you the vehicle is typically not legally obligated to take it back and issue you a refund or exchange after you've signed the sales contract. There are some exceptions to this rule.
Pay off the car loan
If you are struggling to meet your monthly payments, paying off your loan entirely may not be possible. But if you have the financial backing to pay it off early, you can walk away and get rid of the financial stress. One way to pay off your loan is to pay one large lump sum.
Trade In or Sell Your Vehicle
If you need more than just short-term relief and refinancing isn't an option, it might be worth it to get rid of the car. You could either trade it in to a dealership or sell it to a private party and buy a used vehicle.
Each can appear on your report as a separate entry. Repossessions, collections, and court judgments can remain on your credit report for up to seven years, reading as a derogatory mark and dropping your credit score by 100 points.
Most of the time, unfortunately, you can't return a financed car. Although there are a few scenarios where it may be possible (more on that below), they are few and far between.
Yes, it is possible to get out of a car loan, but there are only two ways to do it: satisfying the terms of the loan or defaulting on the loan (which can end up with your car being repossessed). Unfortunately, it's not possible to just give back a car and end the financing agreement as though it never happened.
Note: If you're selling a car with an active loan, you're still the one responsible for paying it off, so the remaining balance on the loan will likely be subtracted from the price the dealer offers you. So if you owe more than what the dealer offers, you'll need to pay the difference to the lienholder.
Voluntary car repossession is only a slightly better option than involuntary repossession. You may be a bit more prepared and have some control over when you surrender your car if it's voluntary. Avoiding some of the extra fees that can come with involuntary repossession can be helpful, too.
In conclusion. Buyer's remorse is a difficult feeling, but once the paperwork is signed, your ability to back out of a car purchase is very limited. Returning a car after the purchase is generally not an option, as most dealerships do not have a return policy once the sale is finalized.
No length of time restricts you from trading in a newly purchased vehicle. However, trading in a new vehicle may be a waste of money. The depreciation that occurs when you leave the dealership means your trade-in will have less value than a new vehicle, even though it's practically new.
The cooling-off rule is federal, and your state may have its own grace period. For instance, California state law provides a grace period to return a used car that cost less than $40,000. It's called a contract cancellation option agreement, and it's outlined in the California Car Buyer's Bill of Rights.
All agreements come with a 14-day car finance cooling-off period, which means you have a legal right to withdraw from the arrangement or cancel it within the first 14 days of signing the contract. To cancel your credit agreement within the 14-day cooling-off period, you need to contact the lender directly.
Negotiate and finalize: You can negotiate with the dealer on the price of the new car, and on how much they will offer you for your trade-in. If the trade-in offer won't be enough to pay off your current loan, the dealer or lender may roll the difference into a new loan.
If you can't afford your car payments, you can give the vehicle back to your car loan lender. This option is called a "voluntary repossession." But just because you surrender the car doesn't mean that the creditor has forgiven the debt or that it has to.
Estimates vary, but you can expect a voluntary repossession to lower your credit score by 50-150 points. How big of a drop you will see depends on factors such as your prior credit history and how many payments you made before the repossession.
Voluntary return is just calling the finance department and telling them you're not going to pay. It just lets them know it's gonna be an easy repo...which brings us to... It's still repossession. They will sell the car at auction for pennies on the dollar and you will owe any remaining balance.