Can you return a car you just bought? What to do about buyer’s remorse

Can you return a car? 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. Some dealerships may allow you to return the vehicle under specific circumstances. If the car has major mechanical issues, the dealership may be legally required to accept a return.

Still, it’s better to avoid having to return a car in the first place.

Can you return a car if…

You got ripped off?

If you feel the car’s seller cheated you, consider meeting with the dealership manager. Bring documentation to corroborate your claim that you were wronged.

For example, if you believe the dealer overcharged, present evidence of the vehicle’s fair market value from a reputable source (like Edmunds or Kelley Blue Book) to support your argument.

Present your case to the manager calmly. Remember that since you’ve already signed the contract, your options are limited.

You may also:

• Contact your state attorney general’s office to discuss your options.
• File a complaint with the Better Business Bureau.
• Hire an attorney to sue the dealership.
• Leave a bad review on the dealership’s website.
• File a complaint with your state’s consumer protection agency or the Federal Trade Commission.

Your car payments are too high?

You’ll have difficulty making your case if you want to return your car because your monthly car payments are too high. The dealership’s general manager could argue that you should have determined whether you could afford the car before buying it.

It’s up to the dealership whether you can bring back the car and exchange it for something more affordable. Speak with the salesperson who sold you the car first. If that doesn’t work, contact the sales manager or the dealership’s general manager.

Once you’ve exhausted those options, look into other methods to lower your monthly payments. Refinancing your auto loan with a lower refi interest rate or a longer term can lower your monthly payment.

However, most refinance lenders have requirements stating that you must make a certain number of payments on the current loan before refinancing. For instance, some lenders have a six- to 12-month requirement of on-time payments before you can refinance.

Your car is a lemon?

To build a case for returning a car that doesn’t run properly, gather documentation on the mechanical problems you’ve experienced. You may need multiple trips to the dealer’s service department. Ensure your complaints are noted in detail on all repair orders.

If the problem still hasn’t been fixed, you may determine your car is a lemon — a vehicle beyond repair. Laws vary from state to state. You’ll have to research to see whether you can make a legitimate lemon law claim. In most states, lemon laws only apply to new vehicles with a serious defect impairing your ability to drive it.

You can research the laws in your state on The Center for Auto Safety’s website, which outlines each state’s required actions and timeline for returning a car under lemon laws.

You can secure a refund or comparable vehicle exchange upon a successful claim.

• Thirteen states have lemon laws for used cars:

  • Arizona
  • California
  • Massachusetts
  • Michigan
  • Minnesota
  • Nevada
  • New Jersey
  • New Mexico
  • New York
  • Rhode Island
  • Texas
  • Vermont
  • Virginia

Limitations apply, and these laws may not provide much relief in your situation.

You changed your mind?

Dealers do not generally find buyer’s remorse persuasive. Very few dealerships have a return policy. Once you sign the sales contract, you’re responsible for paying the note as promised.

Although the FTC has a “cooling-off rule” — a rule where you have three days to cancel a sale made at your home, workplace or seller’s temporary location — a vehicle purchase is among its exceptions. Even if a dealership sells you a car at a temporary location, the rule still applies as long as they have a permanent location.

Some states also have a “right to cancel” period that lets you return the car within a certain time frame without incurring any penalties or damage to your credit profile. However, the vehicle must be in the same condition as when you purchased it. Other limitations often apply.

Your dealer has a return policy?

A few dealerships have return policies. For example, CarMax has a 30-day return policy. Carvana is famous for its seven-day money-back guarantee. 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.

How to avoid returning a car

If you want to avoid the difficult process of returning a car, you should properly prepare to purchase a car. This process involves several steps:

1. Read car reviews about the make and model you are considering on websites like Consumer Reports.
2. Perform price research using Kelley Blue Book or Carfax, compare auto loan rates, and test-drive the vehicle.
3. Research dealerships in advance by reading online reviews. Use sites like BBB.com to ensure dealerships have a good reputation and exceptional customer service.
4. Investigate the history and condition of the specific car you’re considering purchasing. You can begin by reviewing history reports for the vehicle via sites like Carfax or AutoCheck, where information on the vehicle can be accessed using its vehicle identification number. If you’re purchasing a car from a dealer, ask the dealership to provide the car’s history for your review.
5. Take the car to be inspected by an independent, third-party mechanic. They can provide an unbiased assessment of the car and any issues it may have. If the mechanic discovers mechanical problems, ask the seller to foot the repair bill.

Alternatives to returning your car

Can’t return your car? You still have options.

• Sell it. By selling your car to someone else, you can get out of being stuck with a car you don’t like. You might be unable to recoup the full amount you paid because a car depreciates as soon as it’s driven off the lot. You must pay the difference between the financed amount and the price the buyer pays for the vehicle.
• Ask for voluntary repossession. If you can’t afford the monthly payments, you could call the lender and ask for a voluntary repossession. Think twice before taking this action. A lender can still report the repossession to the credit bureaus. Repossession negatively impacts your credit score for up to seven years, making it more expensive to take out a future auto loan. A lender may also refuse to repossess a car.
• Refinance your auto loan. If your monthly payments are too high, you can refinance your car loan by extending your term or securing a lower interest rate. While taking this step will reduce your credit score slightly, the effects are only temporary. In fact, after just a few months of making payments, your credit score should rebound or even improve.

The bottom line

Before you purchase a car, spend some time researching the price of cars you like and reading the dealership’s return policy and car reviews. Failing to research could leave you stuck with a car. In most cases, you can’t return a car you just bought. Most dealerships won’t allow it.

If you cannot return a car, there are other ways to get rid of it. You can sell it or file a lemon law claim under certain circumstances. Alternatively, after a few months of making payments, you can refinance the auto loan.