How to Cancel a Contract for a Vehicle Purchase
Buying a vehicle is a major purchase one that you may have to live with for many years. But sometimes you may have second thoughts about your decision, one that you may be able to get out of under certain conditions. Legally, you are bound to the contract you signed, yet if you can prove fraud or demonstrate that some other provision was not fulfilled, then you may be able to have that agreement set aside.
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Instructions
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Check your state's law. Your particular state governs consumer contracts, including the sale of motor vehicles. What that means is that your state could have somewhat different laws from other states; therefore, visit your state's Office of the Attorney General to uncover that information. Many states allow consumers up to 72 hours (excluding Sundays and national holidays) to cancel certain types of transactions, but motor vehicle purchases made at a car dealership or used car lot are typically not included.
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Contact your state's consumer affairs office. If you suspect fraud, you may be able to cancel your car purchase agreement. That will mean that you will need to prove that your dealer acted to conceal something about the car or contract that was different from what you believed. This could include selling you a flood damaged car, rolling back the mileage on the odometer or changing the terms of the contract. If there is an evidence of wrongdoing, the state may set aside your car purchase agreement.
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Seek legal guidance. If state law is vague or if the state won't hear your case, contact an attorney for help. A consumer law attorney will know if you have grounds to have the contract dismissed. For example, he may discover that you signed a purchase to buy a vehicle but have yet to be approved for a loan, which is a separate contract. If your loan is turned down, there may be a provision in the car purchase agreement that cancels the deal if financing cannot be obtained.
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Tips & Warnings
If you cannot afford an attorney, your local legal aid society may be able to provide one for you.
Your car dealer may agree to release you from your contract but keep your deposit.
Though you could walk away from your agreement, doing so will result in a major hit against your credit.
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Resources
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