What is the cooling-off period for car finance?

Asked by: Maureen Reichel  |  Last update: January 29, 2026
Score: 4.7/5 (11 votes)

Cancelling car finance within 14 days To cancel your credit agreement within the 14-day cooling-off period, you need to contact the lender directly. This is known as 'giving notice' and you don't have to give any reason for changing your mind.

How long do you have to change your mind after you buy a car?

Consumers who purchase a used car for less than $40,000 must be offered a two-day contract cancellation option agreement. There is no “cooling off” period unless you purchase a contract cancellation option agreement.

Can I cancel a car finance agreement within 14 days?

Yes, within 14 days you can cancel the finance agreement and repay it in full plus how many days interest it's built up in the process.

Can I return a financed car within 30 days?

Whatever the reason, if you have buyer's remorse on your vehicle purchase, you're likely going to be out of luck once the financing goes through. Dealers generally aren't required to provide a grace period where you can return the car and receive a refund.

Is there a cooling-off period with finance?

You have the right to cancel a credit agreement if it's covered by the Consumer Credit Act 1974. You're allowed to cancel within 14 days - this is often called a 'cooling off' period.

Vault: There is NO 3-Day Cooling Off Period When Buying a Used Car

39 related questions found

Can you back out of a car finance after signing?

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.

Is there a cooling-off period after signing a contract?

14 days is the minimum cooling-off period that a seller must give you. Make sure you check the terms and conditions in case they've given you more time to change your mind - many choose to do so.

How many days do you have to back out of a car loan?

The 10-Day Rule: When can sellers cancel a car dealership financed contract? California Car Dealers are allowed to Cancel Your Contract within 10 Days and demand the car they sold you back, but they: CANNOT Keep your down payment or your trade in.

Can you change your mind after signing a car lease?

California law does not provide for a “cooling-off” or other cancellation period for vehicle lease or purchase contracts. Therefore, you cannot later cancel such a contract simply because you change your mind, decide the vehicle costs too much, or wish you had acquired a different vehicle.

How to give back a financed car?

Voluntarily surrendering a car involves informing your lender that you can no longer make payments and intend to return it. Empty your car of all personal items and arrange the time and place to drop off your car and hand over the keys.

How to get out of a financed car?

How to get out of a car loan
  1. Renegotiate your loan terms. ...
  2. Refinance your car loan. ...
  3. Pay off your auto loan early. ...
  4. Sell your car. ...
  5. Consider voluntary repossession. ...
  6. Default on your car loan (not recommended) ...
  7. Consider filing for bankruptcy (not recommended)

Does returning a financed car hurt your credit?

If you financed a vehicle purchase through the dealer, they may have specific rules about when you can and can't return a car. Leasing agreements may include clauses for returning a vehicle early, though you may pay a penalty to do so. Returning a car you financed may have negative impacts on your credit score.

How long do you have to cancel a loan after signing?

The three-day cancellation rule, also known as the “right of rescission,” is a consumer protection law from the Truth in Lending Act. It gives you three business days, including Saturdays, to change your mind about a loan.

Can you change a car contract after signing?

Unfortunately, contracts are intended to be legally binding — by signing the contract, you agree to the terms stated within it. Most buyers who sign a car purchase agreement aren't easily able to get out of it, but there are a few possible exceptions.

Can you take back a car you bought and change your mind?

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.

What happens if you buy a car and then it breaks down?

You would sue for what you paid for it. Or you can get an estimate for repairs and sue for the cost to fix it to the condition it should have been in and represented to be in.

How long do you have to cancel a car lease after signing?

For all these reasons, you should only cancel a car lease within thirty days (or three days, or one day) if there's a grace period written into your contract! If you purchase or finance a vehicle instead of leasing it, you can trade-in or sell your vehicle at any time.

How many days do you have to change your mind after signing a lease?

California Law does not provide a cool off period for signing leases. You should talk to the landlord immediately and explain the situation and see if the landlord will let you out of the lease.

What happens if you lease a car and hate it?

Thankfully, there are a few ways that you may be able to unburden yourself from a lease you no longer want to be in. You may be able to transfer the lease, buy the leased car and sell it to someone else, trade in your car, and/or lower or suspend your payments.

How long after signing a car can you back out?

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.

How to get repo fees waived?

Another option is to give up the vehicle to the lender voluntarily rather than going through the repossession process. The lender may find this option appealing because it avoids the costs of repossession, and it may agree to reduce or eliminate the deficiency balance on the loan.

Can I cancel a car loan after signing?

Canceling a car purchase agreement may come with financial consequences, such as forfeiture of a deposit or restocking fees.

Do you always get a 14-day cooling-off period?

You automatically get a 14-day 'cooling-off period' when you buy something you haven't seen in person - unless it's bespoke or made to measure.

How long after signing a contract do you have to change your mind?

How much time do you have to change your mind after signing a contract? The FTC's three day “cooling off” period allows consumers to void a contract they have signed within three business days without incurring any penalties.

What is the cooling-off period for finance?

Definition of Cooling Off Period

Cooling-off-period the period of time between the filing of a registration statement and its effective date. During this time, the SEC is reviewing the registration statement and no sales may take place. The cooling off period is at least 20 days.