In a Nutshell
Returning a car isn’t like returning a sweater or pair of pants. In general, you can’t just take it back to the dealership if you change your mind after you drive it off the lot. But there are some exceptions. And if you find yourself stuck with a car you no longer want, there are some steps you can take.If you decide you don’t want a car you just bought, many auto dealers are unlikely to let you return it, but there are exceptions.
The easiest way to find out whether a dealer accepts returns is to ask — ideally, before you make a purchase. If it’s too late for that, being able to return the car typically depends on the dealer’s policies.
What if the dealer is unwilling to work with you? You might have some options if you decide that you don’t want the car anymore or that you can’t afford the monthly loan payments.
Let’s take a closer look at returns, including what some other options are and what you can do to help ensure you get a car that’s right for you in the first place.
Can you return a car?
If you have buyer’s remorse, chances are the dealer won’t let you return a car you’ve bought. However, there are some exceptions.
Dealer return policies
Some car dealers such as CarMax and online marketplaces like Carvana and Vroom have policies that allow people to return cars they’ve bought, under certain conditions. If you buy a car from a dealer that explicitly allows returns, you’ll typically be able to take the car back as long as you follow the terms of the policy. Policies may restrict this to a certain time period (seven days, for example) with certain mileage limits. If the dealer doesn’t have a return policy, and it’s not required by law, deciding whether it accepts a return on an individual basis is up to it. It’s a good idea to understand the policy before you purchase.
Lemon laws
Lemon laws are state laws that are designed to protect people who buy or lease a car that has defects affecting its use, value or safety. If you purchase a “lemon” and the dealer can’t fix the problem after a certain number of attempts, you may be entitled to a refund or a replacement car that’s similar in value to the one you purchased.
The protections offered by lemon laws vary by state, so it’s important to understand the laws where you live. Lemon laws typically apply to new cars, but in some states they also apply to used car purchases.
Alternatives to returning a car
What happens if you no longer want the car you bought but the dealer won’t let you return it? You may have a few options.
Sell it
If you decide you no longer want the car, or you can’t afford it, you can sell your vehicle or trade it in for a less expensive vehicle. Websites like Kelley Blue Book, Edmunds and NADA can help you determine the fair market value of the car. But remember: Cars begin depreciating as soon as you drive them off the lot, so you’re unlikely to recoup the full price you paid.
If you financed your purchase, selling the car may be a bit trickier. You’ll need to pay off the remaining loan balance before selling, so that the title can be transferred to the new owner. And if you sell the car for less than what you owe on the loan, you’ll have to pay the difference.
Refinance your loan
If you want to return your car because you can’t afford to make the monthly payments, consider refinancing your car loan first. You may be able to reduce your monthly payment with a lower interest rate or longer term.
Keep in mind that if you choose to extend your loan term, you may pay more in interest over the life of the loan.
Have it voluntarily repossessed
If you can’t afford your payments and are unable to sell your car or refinance your loan, reach out to the lender to discuss a different payment schedule or options for a voluntary repossession. If you agree to have the vehicle voluntarily repossessed, you may not be responsible for paying the repossession costs, which you’d likely have to pay if the lender repossessed it.
But you’re still responsible for paying the difference between what the lender is able to sell the car for and what you owe on the loan. To make matters worse, your lender may still report the repossession to the credit bureaus, which could negatively affect your credit scores and credit reports for up to seven years.
If you’re unable to make your car payments, a voluntary repossession should be your last resort.
Car buying tips
Since returning a car is often not an option, it’s best to do your homework before you make your purchase. Here are some tips to help you get the car that’s right for you at a price you can afford.
- Research the car’s value. Before you head to the dealer, check out websites like Kelley Blue Book, Edmunds and NADA to find estimates of the fair market value for different makes and models in your area. This information can help you negotiate a fair price at the dealership and help prevent you from overpaying.
- Set your budget. Consider applying for preapproval for an auto loan. With a preapproval, you’ll get a good idea what interest rate you might qualify for. This can help you get a general idea of what your monthly payments could be (though the loan fees and term will also be factors in determining your payments).
- Take it for a spin. The car that looked perfect when you were researching it online may not be so perfect when you get behind the wheel. Don’t be afraid to test drive a few different cars within your price range to find the one that’s right for you.
- Take your time. Next to buying a house, buying a car is one of the biggest purchases you’ll probably ever make. If you need a car immediately, consider borrowing one from a family member or friend so you have time to do some research and make an informed decision. If that’s not an option, you may want to rent a car while you’re looking for a new vehicle.
Bottom line
Car dealers are usually not obligated to let you return a car. In most cases, it’s up to dealer policies (unless otherwise required by law).
Just don’t forget to do your homework before you start car shopping. This should help prevent you from being in a situation where you need to return the car.