Frequently Asked Legal Questions | Do I Have a 3-Day Right to Rescind?
Q: Do I have a three (3) day right to cancel my car contract?
A: Not if you just bought a new car.* California law provides the right to cancel certain contracts within three days, for example, mortgage loans, home solicitation (door-to-door) contracts, dating service contracts, dance studio contracts, and others. However, there is no automatic right to cancel a contract to purchase a new or used car, motor home, boat, hot tub or most other products sales agreements.*
However, with respect to conditional sale contracts (financed, not cash sale) there is normally a Seller's Right to Cancel provision, allowing the Dealership a ten (10) day right to cancel if the dealership cannot obtain lender financing as planned.
However, misrepresentation during the sale negotiations usually provides the basis to rescind the contract and get your money back under the California's Consumers Legal Remedies Act, among other laws.
Still further, in the event a customer obligates themself to purchase, or receive possession of, a motor vehicle pursuant to a contract or purchase order, and the dealer knows that the customer intends to obtain financing from a lender without the assistance of the dealer, and the customer is unable to obtain such financing, the contract or purchase order shall be deemed rescinded and all consideration thereupon shall be returned by the respective parties without demand.
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* Enacted in 2006, the California Car Buyer's Bill of Rights requires Dealerships to offer to sell the Buyer a 2-day contract cancellation option, on all used vehicles priced under $40,000.00, allowing the Buyer to cancel the contract within 2 days. (Click link below for more information).