Can You Return a Car?

Returning a car to a dealer is something you should take seriously. In some cases, you may be unable to return the vehicle. Here are a few common reasons to return a car:  

• Take advantage of a return policy - Believe it or not, some dealerships allow for returns. For example, AutoNation offers a five-day or 250-mile (whichever comes first) Money-Back Guarantee. Their policies tend to be strict to discourage buyers from simply taking cars on an extended test drive. 

• Buyer’s remorse - Fear of making the wrong decision can come in full force after you purchase your car. If you’re experiencing anxiety about your purchase decision, you may return the vehicle and undo what you did. 

• Financial concerns - People often try to return a car after they’ve purchased it because they can’t afford the monthly payments. Discussing your concerns with the lender can open the door for renegotiation, but many dealers refuse to make accommodations for a contract you willingly agreed to. 

• Mechanical issues - If you purchased a car and it now has major mechanical issues, consider taking the car back. Lemon laws provide recourse when mechanical issues prevent the car from working correctly or safely, but only a handful of states have lemon laws for used vehicles.  

• Contractual concerns - Some buyers feel cheated and unsatisfied after purchasing a car and wish to return it for a refund. You’ll need all the documentation you can get to prove your case, including the Buyer’s Guide that came with the car. 

Your return's success depends on why you want to reverse your purchase. In cases where you bear the responsibility, things may not work out in your favor. Even when they do, it’s often hardly worth all the trouble. 

If a dealership or online car buying marketplace provides opportunities to return your car, you can use them to be free from a car without issue. Most dealers will not let you out of a car loan simply because you can’t pay your monthly payments. 

However, you can dispute your purchase and potentially return your car for a refund or replacement. You must prove negligence on the dealership’s behalf or that the car qualifies under your state’s lemon laws. A lemon law is a law that protects consumers if they purchase a defective product that cannot be remedied. These laws typically cover vehicles that continue to fail to meet quality standards for one reason or another. 

Dealerships must comply with various regulations surrounding the sale of used cars, specifically their mechanical state. Any issues with a particular vehicle must be disclosed before the sale. Should a buyer experience a mechanical problem that was not adequately conveyed, the buyer has potential grounds to sue the dealership for damages, including a refund or replacement. 

Both lemon laws and claims regarding a dealer’s conduct require extensive documentation. Keep all service records, correspondences, and any other information pertinent to your case. You may also want to seek legal representation, depending on the circumstances. 

Lemon laws vary from state to state and cover varying circumstances. Generally speaking, most lemon laws require that dealerships attempt multiple times to fix a mechanical issue before ruling the car a lemon. The car must also be deemed unsafe or unfit to drive. 

Being proactive is the best way to avoid the rigamarole of returning a car. Do your homework and learn how to calculate APR on a car loan first. Then, sit with your decision for a few days. When you feel ready to take on the challenge, you can visit a dealership and discuss matters accordingly.  

Can you return a used car?

It may be possible to return a used car if you are within the limits of the dealership’s return policy. However, you must abide by certain restrictions if you plan to return the vehicle, even within the accepted return window. 

You can also return a used car if it qualifies under your state lemon laws. These laws require action on the dealership’s part, so returning the vehicle is often a long, drawn-out process. 

Once you sign a car loan, you typically cannot back out of it. Dealerships have no legal obligation to allow you to return your vehicle after financing. If you received financing from another source (such as a bank), you’re bound by their contractual requirements, including any offered return policies.  

Finding out you can’t return the car you purchased can be difficult to accept, but you do have options. You now have an asset you can work with to achieve your goals, albeit with a price.  

1. Sell the car

Selling your car is one of the most common alternatives if you can’t return it. You already know you don’t want to keep it, so selling it can solve several problems. Namely, you can get rid of the car, pay the loan off, and remove yourself from the responsibility associated with the car altogether. 

However, selling your car is easier said than done. You’ll have to decide whether to sell the car privately, to a dealer, or through an online marketplace. Depending on the car's final selling price, you may have to contribute additional funds to repay the loan in full.  

2. Trade the car in 

Unwanted vehicles can also be used as collateral for the one you want. Many people trade in their cars in quickly after realizing they cannot return them. New and used vehicles will suffer from instant depreciation once you drive them off the lot, but if it gets you a lower payment on another vehicle, it can be worth the effort. 

3. Refinance the car

If your concerns lie mainly with making payments, you can refinance your car for a lower interest rate. However, if nothing has changed with your financial situation to improve your credit score, refinancing isn’t going to do you any good. 

4. Volunteer the car for repossession

As difficult as it sounds, you can call your lender and explain that you want to surrender the car. Believe it or not, returning the car in this way can leave a lesser mark on your credit report than if you were to let the vehicle repossession professionals come to you. 

The lender often sells the car after picking it up, the proceeds of which go to paying off any remaining loan amount. Should any funds still be owed, you’ll need to come up with the difference to be free from the loan. 

5. Sign up for a car subscription service

If you want to avoid the pain of buyer’s remorse and a dent on your credit report from voluntary repossession, signing up for a car subscription like FINN can help. FINN offers drivers the chance to subscribe to a vehicle of their choice and manage monthly payments at the same time. Your monthly subscription cost covers insurance, registration and maintenance, so all you have to do is pay for fuel.