Q: Do I have a three (3) day right to cancel my contract?
A: Not if you just bought a new car.* California law provides the right to cancel certain contracts
within three days, for example, home solicitation (door-to-door) contracts, mortgage loans, dating service contracts, dance
studio contracts, and others. However, there is no automatic right to cancel a new or used car, motor home,
boat, hot tub or most other products sales agreements.* With respect to motor vehicles, the dealer can (and sometimes
will) cancel your contract if the dealership cannot obtain financing as planned.
However, misrepresentation during the sale negotiations usually provides the
basis to rescind the contract and get your money back under California's Consumer Legal Remedies Act, among other laws.
* (New) Starting July 1, 2006, California Car Buyer's Bill of Rights will require a car
dealer to offer an option contract to a buyer of a used car under $40,000.00, allowing the buyer to cancel the contract within
2 days. (Click link below for more information).
Car Buyer's Bill of Rights