How to Return a New Car and Cancel the Deal

Typically, once you drive that new car off the lot, it is yours until you decide to resell it. However, there are a few situations where this might not be the case. Depending on where you live and the reason that you want to return the car, there may be a few laws that you can use to cancel the contract.

Instructions

1

Investigate local laws that might allow you to return the car. In New Jersey and other states, for example, there is a "Lemon Law." This means that if you buy a car that is found to be defective, you have the right to return it to the dealership. The stands of what constitutes a "lemon" vary by state.

2

Check the terms of your initial contract or lease agreement. As a measure to make buyers feel more secure in their purchase, some dealerships will include a specific clause that permits the buyer to return the vehicle within a certain time frame. Be aware that if you choose to exercise this type of clause, it will usually cost you a processing fee to return the vehicle. You may also lose your initial deposit. Read the clause carefully if it exists, so that you know the terms of the agreement before you try to return the vehicle.

3

Check and see if your car qualifies as having breached the warranty. New cars are all under warranty, and must conform to the safety and performance standards that the manufacturer guarantees. If the car does not meet these standards, you may be able to return it because of a breach of warranty. Like lemon laws, breach of warranty laws can differ from state to state. Research the local guidelines and regulations before you attempt to return a car for breach of warranty.