Can a financed car be returned?

Most stores will allow you to return clothes and other items if you regret your purchase. However, in the case of new cars the situation is different, the return and refund policies and laws are quite strict. However, many people want to know if you can return a financed car.

After buying the car you wanted so badly, you may think that it is way above what you really need, that the monthly payments are too high, or that you have purchased an expensive warranty. In short, there are enough reasons to want return a car that you have acquired very recently. But can you cancel the purchase of a car? It is possible that you can do this but in many cases it will not be easy.

📰 Contents
  1. Can a financed car be returned?
    1. The federal cold regulation
  2. Is it possible to cancel the purchase of a car?
    1. buyer's remorse
    2. Fraud
    3. law of lemon
  3. Can a financed car be returned? The seller's point of view
  4. What to do if a solution is not reached after presenting the case?
  5. The best option: avoid the problem
  6. How to return a financed car

Can a financed car be returned?

The answers to this question are "no" and "maybe". If you bought a used car, you may have better luck returning it, but it all depends on the state you live in and the dealer's policies.

The federal cold regulation

You may have heard of the "federal cooling rule”Or federal cooling rule that applies to some purchases. Their primary goal is to protect consumers from high pressure door-to-door sales tactics. It does not explicitly apply to the automotive sector. If you signed the sales contract, you are the owner of the car. In this case the law is on the seller's side. So can a financed car be returned? This is where "maybe" comes into play.

What happens if I return my car to the finance company?

Is it possible to cancel the purchase of a car?

Basically, it depends on the seller. While entrepreneurs clearly want customers to be satisfied, cancel the purchase of a car it's a big headache for a car dealer. But there are times when it is correct to do so. This is the point of view presented in " Release of a deal “, An article from a retailer, F&I and Showroom publication written by Marv Eleazer, CFO of Langdale Ford in Valdosta, Georgia.

Speaking to other auto sales professionals, Eleazer writes: "There are situations where we have to swallow our pride and go through the hassle of closing a deal." He continues by addressing several specific situations: if the car doesn't perform as promised, if the buyer misrepresented their credit score, and if the seller made too much effort and didn't honor the offer.

Obviously, canceling a deal is complicated and you should go carefully to the seller to make the case. While each situation is different, let's take a look at three fairly common scenarios:

buyer's remorse

The vast majority of car dealerships have no written policies that will allow you to terminate the purchase agreement you have signed. This means your only chance is to plead the case. You can say that you have discovered that you don't like the car or that extending your budget will put you in a very difficult financial situation.

If you feel remorse, you can call the seller first as a courtesy, but be prepared to contact someone higher up in dealership management, such as the sales manager, general manager, or owner.

IMPORTANT: The cancellation of the purchase will be a decision that can only be made by the supplier.


If the auto dealer has not kept their promises or suspects that they have been a victim of fraud, you may have a case to make. But don't make crazy and unfounded accusations. You must have all the documentation that will help you prove the fraud. If you think you paid too much, check the suggested price online to show what an acceptable price range would be.

Remember that consumers who complain about the price also have their share of the blame. Preparation and research are essential when making such a large purchase.and if you are about to close a deal and think you don't have enough information to proceed, don't. It is better not to buy the car than to try to win the dispute by canceling the purchase after making it.

law of lemon

It takes time and work to legally establish that a car is a lemon according to the "Law of the lemon”Or lemon law. Be sure to review the lemon laws in your state to determine if this is the right course of action for you.. Sometimes a buyer quickly decides that the car is faulty and wants to trade it in for another one or cancel the deal.

In situations where there is a clear problem with a new car, the dealer will often repair it under warranty. If there is no warranty, as is the case with many used cars, you can still push for the car to be repaired. The retailer's incentive to carry out such repairs is to build trust and attract repeat customers.

Can a financed car be returned? The seller's point of view

It is necessary to understand the point of view of the seller or reseller to arrive at an acceptable solution. As Eleazer noted: “There is no problem that cannot be solved when people take a mature approach. Dealers are really looking to do business and are making great strides in creating an environment that fosters long-term relationships with their customers. "

He added: "The best way to resolve these misunderstandings is to simply go back to the dealership and ask to speak to the manager in a calm tone.. The drama and the screams don't impress. Ask for help, yes.

In the event of buyer's remorse, perhaps if a person has made a purchase that is too expensive for their budget, the dealer may be willing to offer a vehicle at a lower price. But "They have no legal or moral obligation to do so."

What to do if a solution is not reached after presenting the case?

If your complaints have been useless, you still have other alternatives available. Of course, you can hire a lawyer and sue the dealer. But this option is expensive and time-consuming. Let's see what you could do:

You can make a claim against the dealership through state and local agencies. Visit your state's Department of Motor Vehicles website to see if there is a procedure for filing a complaint.

The state attorney general's office is another place to look for information on how to file a complaint against a car dealership. The National Association of Attorneys General lists the websites of the state attorney general and their offices. There you can find information about the laws and the grievance process.

Another avenue is the Better Business Bureau. The best time to check the dealership for consumer complaints is before buying a car. The same goes for online ratings and reviews, such as those posted on Google or Yelp. But after making your purchase, you may be able to get the BBB to pressure the retailer to resolve the dispute. Aside from that, threatening to give a retailer a negative rating or review online, or in a post-purchase survey of a manufacturer, might carry some weight.

The best option: avoid the problem

As we have already explained, in some cases a financed car can be returned.

You may be able to pressure a dealer to cancel a car purchase; however, it is much better to avoid these pitfalls.

If you are unfamiliar with the sales contract, ask for it to be emailed to you before making your purchase. The finance manager might also take a picture of the contract pricing page and send you the picture, so you have a chance to review them in detail.

You can avoid the problem by being a prepared buyer who knows the market price of the car you want to buy. Read the sales contract carefully and inspect the car thoroughly before making the purchase.

How to know what my car is worth in the blue book

How to return a financed car

Returning a newly funded car can sometimes be an effective option if you can't pay off the loan. However, you need to check the credit agreement before doing so.

These are the steps to follow:

1. Read the purchase and financing agreement. This first step is very important as the contract can indicate the period of time in which the vehicle can be returned.

2. State your situation and, if necessary, negotiate with the seller

3. Return the vehicle to the dealer. Do not forget to bring the important documents relating to the purchase of the car. You must also return the keys, manual and title.

If you want to discover other articles similar to Can a financed car be returned?, you can visit the Last News category.

Nathan Hamilton

Nathan Hamilton

Nathan is a car enthusiast and industry professional with decades of combined experience in the automotive sector. Along with his team of writers and researchers, all passionate about automobiles, he is committed to delivering reliable and relevant content that ranges from detailed insurance guides to maintenance tips and much more.

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