Procedure for cancelling the deal with the dealer even after signing all the documents

It’s common to buy a new or used car, but customer’s satisfaction is not guaranteed with each sales. They may inspect some mechanical problem or issues regarding the handling of the car after driving it for a day or two. It is not that easy to drop the deal once you have signed the papers. Some transactions are available like 3 day cancelling right or so but they are not the legal requirements and is generally depends upon the seller’s choice.


1. Read the file carefully before signing. Check for the return terms whether they allow you to return the car within 72 hours. Usually the new car dealer doesn’t offer deal cancelling right, but the used car dealer might offer you this but on the condition that no return and warranty valid until the car is safe and legal.

2. Find out whether any vehicle purchase law exist which you can find from the state attorney general’s office. Although in general, no federal law for auto dealer exist that provides the right to cancel the deal but some of the states are having laws for the benefit of customers who is buying the car.

3. Make a call to the dealer to give the explanation why you want cancel the deal. Tell them about the problem, they will make you aware about the legal return basis. In case you are having no legal reason, then have negotiation with the sales manager and tell him that you have changed your opinion as you haven’t found this car fit for you.

4. At the dealership store, tell the mangers that you are ready to pay the penalty in charge of returning the car back. This financial incentive might make it easy for him to return but it’s not guaranteed.

Warning and tips

  • Read the documents and return policies clearly before signing it.
  • Better if you buy another from same store in exchange of the earlier one.
  • You might have to take the risk to be sued by the dealer while returning the car.

Signing the papers at a car dealer

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