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Is There a Cooling Off Period for Vehicle Purchases in California?

Young woman customer female buyer client wears shirt consult with salesman hold tablet choosing auto want to buy new automobile in car showroom

Purchasing a vehicle is an exciting but often nerve-wracking experience. Many buyers leave the dealership with a tinge of buyer’s remorse, worried they made the wrong decision and wondering, “What if I change my mind?” A common question California consumers ask is whether there is a cooling-off period that allows them to return a car they just purchased. Below explore this concept and what it means for car buyers in California. If you purchased or leased a defective vehicle and need to exercise your rights under California’s lemon laws, contact Nita Lemon Law Firm to speak with a skilled and experienced California lemon law attorney.

What Is a Cooling-Off Period?

A cooling-off period refers to a legally designated timeframe during which consumers can cancel certain contracts without penalty. It’s most commonly associated with transactions that happen outside a traditional retail setting, such as door-to-door sales or telemarketing. Unfortunately, many people mistakenly believe this rule applies to vehicle purchases.

The Truth About California’s Cooling-Off Period for Cars

In California, there is no general cooling-off period for vehicle purchases. Once you sign the sales contract at the dealership, it is legally binding. You cannot return the vehicle simply because you changed your mind or regretted your decision.

This rule applies whether you purchase a new or used vehicle. However, there are limited exceptions and consumer protections available under California law that may help you if you’re unhappy with your purchase.

The Contract Cancellation Option for Used Cars

Although there’s no cooling-off period, California law does require dealerships to offer a Contract Cancellation Option Agreement for used cars under certain conditions. This option applies to used vehicles priced under $40,000, and it must be purchased at the time of sale to be effective. If purchased, the agreement allows buyers to return the car within two days for a full refund, minus the cost of the cancellation option and any restocking fees.

If you’re buying a used car and think you might need a safety net, consider purchasing this option for added peace of mind.

When Lemon Law Applies to Vehicle Purchases

If your new vehicle turns out to be a “lemon,” California’s Lemon Law (the Song-Beverly Consumer Warranty Act) may offer you legal recourse. The law protects buyers whose vehicles have substantial defects that the manufacturer or dealer cannot repair after a reasonable number of attempts.

To qualify under the Lemon Law:

  • The defect must substantially impair the vehicle’s safety, value, or use.
  • Repairs must have been attempted within the warranty period.
  • The manufacturer must be given a reasonable number of opportunities to fix the issue.

If your car meets these criteria, you may be eligible for a refund or replacement vehicle, or compensation for the vehicle’s diminution in value should you choose to keep it. Additional money damages may be available as well.

Tips to Protect Yourself When Buying a Vehicle

Although there’s no automatic cooling-off period required by law, you can take steps to ensure you’re satisfied with your purchase by taking steps like the following:

  1. Research beforehand: Know the car’s value, reliability, and reviews.
  2. Inspect the vehicle: For used cars, have a trusted mechanic check for hidden issues.
  3. Understand the contract: Review all terms, fees, and warranties before signing.
  4. Ask about the cancellation option: If buying a used car, consider adding this protection.

Need Help? Contact a Lemon Law Attorney

If you’ve purchased a vehicle that seems defective or you feel misled by the dealer, help is here to protect your rights. At Nita Lemon Law Firm, we help California consumers resolve disputes with dealerships and manufacturers including lemon law violations or auto dealer fraud, ensuring their rights are protected under the law.

Contact us today for a free consultation to learn more about your legal options. Call 213-232-5055 in Los Angeles or 877-921-5256 throughout California. You can also submit a free case evaluation request at www.nitalemonlaw.com, or email nick@nitalemonlaw.com for a fast response.

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