Can a financed car be returned?
Most stores will allow you to return clothing 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.
Still, many people want to know if a financed car can be returned .
After buying the financed car you wanted so much, you might think that it is way above what you really need, that the monthly payments are too high, or that you bought an expensive warranty.
Simply put, there are plenty of reasons to want to return a car you bought very recently. But can you cancel the purchase of a car? It is possible that you can do it but in many cases it will not be easy.
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Can a financed car be returned?
The answers to this question are “no” and “maybe.” If you bought a used car, you might have better luck returning it, but it all depends on the state you live in and the dealer’s policies.
The Federal Chill Rule
You may have heard about the “ federal cooling-off 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 automobile sector. If you signed the sales contract, you own the car. In this case the law is on the side of the seller.
So can a financed car be returned? This is where the “maybe” comes in.
Can a financed car purchase be cancelled?
Essentially, it depends on the seller. While business owners clearly want satisfied customers, canceling a car purchase is a major headache for a car dealer.
But there are times when it is correct to do so. That’s the point of view espoused in ” Unwinding a Deal ,” an article from a dealer publication;
F&I and Showroom, written by Marv Eleazer, CFO of Langdale Ford in Valdosta, Georgia.
Addressing other car sales professionals, Eleazer writes, “There are situations where we must swallow our pride and go through the hassle of closing a deal.”
He goes on to address several specific situations: if the car doesn’t perform as promised, if the buyer has misrepresented his credit score, and if the seller has overcommitted and failed to honor the offer.
Obviously, voiding a deal is complicated, and you should carefully approach the seller to make the case. Although every situation is different, let’s look at three fairly common scenarios:
Financed car Buyer’s remorse
The vast majority of car dealers do not have written policies that allow you to terminate the purchase agreement that you have signed. This means that your only recourse is to plead the case.
You can say that you have discovered that you don’t like the car or that stretching your budget will put you in a very difficult financial situation.
If you feel remorse, you can call the salesperson 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: Canceling the purchase will be a decision that can be made exclusively by the supplier.
Fraud
If the car dealer didn’t keep their promises or you suspect you were a victim of fraud, you may have a case to make. But don’t make wild and unfounded accusations.
You must have any documentation that will help you prove the fraud . If you think you paid too much, check the suggested price online to demonstrate what an acceptable price range would be.
Remember that consumers who complain about the price also have their share of guilt. Preparation and research are essential when making such a large purchase,
and if you’re 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 to void the purchase after you have made it.
lemon law.
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It takes time and work to legally establish that a car is a lemon under the 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 the car is defective and wants to trade it in for a different 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 to have the car fixed.
The dealer’s incentive to perform such repairs is to build trust and attract repeat customers.
Can a financed car be returned? The seller’s perspective
You must understand the point of view of the seller or dealer to arrive at an acceptable solution. As Eleazer noted: “There is no problem that cannot be solved when people take a mature approach.
Dealerships 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 return to the dealership and ask to speak to the manager in a calm tone.
The drama and the screaming do not impress. Ask for help, yes.
In cases of buyer’s remorse, perhaps if a person made a purchase 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 after presenting your financed car case you do not reach a solution?
If your complaints have been futile, you still have other alternatives available. Obviously, 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 file a complaint against the dealership through local and state agencies . Visit your state’s Department of Motor Vehicles website to see if there is a procedure for filing a complaint.
Your state attorney general’s office is another place to look for information on how to file a complaint against a car dealer.
The National Association of Attorneys General lists the websites of state attorneys general and their offices. There you can find information about the laws and the complaint process.
Another avenue is the Better Business Bureau. The best time to check the dealership for consumer complaints is before you buy a car.
The same goes for online ratings and reviews, like those posted on Google or Yelp. But after the purchase is made, you may be able to get the BBB to put some pressure on the dealer to resolve the dispute.
Other than that, threatening to give a dealer a bad rating or review online, or in a manufacturer’s post-purchase survey, might carry some weight.
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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’re not familiar with the sales contract, ask for it to be emailed to you before making the purchase.
The finance manager might also take a photo of the contract pricing page and send the image to you, 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 well before making your purchase.
How to return a financed car
Returning a newly financed car can sometimes be an effective option if you find you can’t make your loan payments. However, you must verify 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 may indicate the period of time in which the vehicle will be allowed to be returned.
2. State your situation and negotiate with the seller if necessary
3. Return the vehicle to the dealer. Do not forget to bring the important documents related to the purchase of the car. You must also return the keys, manual and title.
