You can trade it in. There are no federal laws that say dealers must allow returns of vehicles. If you buy a new car and find it isn't the right fit, your only option may be to trade it in. However, if the car doesn't work properly or is defective, the car may be considered a lemon.
Can you return a new car if there's something wrong with it? Yes — most states have lemon laws to protect consumers if their newly purchased car has unforeseen mechanical issues. You may also be able to return a vehicle if your lender didn't approve a loan or the salesperson was dishonest.
You typically can't return a car because you changed your mind or realized you can't afford it. However, you might be able to return a car if it turns out to be a lemon, the dealer allows returns or your dealer financing falls through.
Unless the contract for sale, had a cooling-off period or a time to rescind, the loan and contract, you cannot just change your mind and back out, after buying it. The contract and sale, are legally binding, so having buyer's remorse and no longer wanting it, is not a legal basis to back it.
Car Buyer's Remorse
You can have buyer's remorse over anything, whether it's an item of clothing, an electronic, or a new vehicle. Unlike clothing, however, you usually can't take a car back to the dealership if you decide you no longer like it.
Car coining
There is a practice in New Jersey and New York of tossing a few coins onto the floor of a newly purchased car as a sign of good luck. This practice originated as a practical one. Because of the area's many toll roads, many drivers would carry change in their cars.
Dealerships are not legally required to offer a return policy. Even the federal cooling-off rule, a law which gives you three days to cancel certain purchases, doesn't carry over to vehicles.
While this may sound like an ideal solution, it should be viewed as a last resort. It can harm your credit score and make it much more difficult to be approved for financing again in the future.
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.
If you don't like the car, 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.
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.
When it comes to cars, buyer's remorse is the worst because there's no return policy. Once you buy your car, it steadily depreciates in value over time. If you buy a new car, the depreciation curve over the next three years is the steepest. Therefore, you had better buy a car you really love, responsibly.
If you are still making payments on the vehicle and the bank or another dealership still holds the title, you can still make a deal with a dealership. But you may need to pay the dealership all or part of what you owe before getting any cash from the deal.
In this scenario, you tell the lender you can no longer make payments ask them to take the car back. You hand over the keys and you may also have to hand over money to make up the value of the loan. Voluntary repossession allows you to return a car you financed without being subject to the full repossession process.
A used car experiences less depreciation.
A vehicle is a depreciating asset, meaning it tends to lose value over time. According to Kelley Blue Book, a new car loses 20% of its value in the first year after purchase. Within the first five years, that number grows to 60%.
Legally, you can trade in your car under loan at any time. Whether you should trade in your car after a year or 2 years depends on how much money you stand to lose or gain. This amount will vary based on the equity you have in your car.
When you can't afford your car anymore and are in danger of losing it to repossession, you can give the vehicle back to the lender before it's taken. This is called a voluntary surrender or voluntary repossession.
In most cases, you can't return a vehicle after signing the contract. The only exceptions are used car dealerships that have limited return policies, but you need to know what the limitations are before deciding to purchase the vehicle.
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.
Yes, you can trade in a financed car, but you still have to pay off the remaining loan balance. However, this is not as intimidating as it sounds. Visit our finance center at Chevrolet Center Inc to learn more about paying off car loans, interest rates, leasing a car, and more!
Trading in your car after two years and before three years might get you more than if you waited until after three years, because your new car warranties are likely still active at two years. But it should ultimately depend on your financial situation and your car's depreciation after the two years.
A black cat crossing your path can mean good or bad luck, depending on the direction they cross your path. On one hand, if it's from right to left, good luck is on the way. But if it's from left to right, beware of bad luck. This isn't limited to just strays, either.