Can You Return a Car?

You usually can't return a car you just bought. However, there are some exceptions and alternatives to consider.

Updated Oct 4, 2022 · 5 min read Written by Benjamin Din Lead Writer

Benjamin Din
Lead Writer | Politico

Benjamin Din is a lead writer at NerdWallet. He previously was a technology reporter at Politico, where he authored a daily newsletter covering tech and telecom policy.

Benjamin loves to travel — both for work and for fun. He’s reported from three continents and visited nearly two dozen countries. He has written for The Wall Street Journal, Bloomberg News, The Washington Post, The San Francisco Chronicle and The (Johannesburg) Star, as well as covered two Olympics with NBC Sports.

His goal is to visit a new country and a new state each year. Assigning Editor

Julie Myhre-Nunes
Assigning Editor | Auto loans, consumer credit

Julie Myhre-Nunes helps lead auto loans and cars coverage at NerdWallet. She has been in the personal finance space for more than 10 years. Before joining NerdWallet, Julie oversaw editorial teams at NextAdvisor and Red Ventures. Her personal finance insight has been featured on Forbes, The Boston Globe and CNBC. Julie’s writing has been published by USA Today, Business Insider and Wired Insights, among others. Email: [email protected] .

Fact Checked

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

In most cases, you can’t return a car you just bought. Once you’ve signed the contract and driven off with the vehicle, the car legally belongs to you. It doesn’t matter whether it’s new or used, or whether you bought it from a dealer or in a private sale.

But in certain situations, you can return your purchase:

The dealer or online car-buying service you purchased from has a stated return policy. You bought a contract cancellation option as an add-on. You purchased a defective vehicle, known as a "lemon."

If the vehicle has a major defect, federal and state laws — known as lemon laws — can help you get a refund or replacement. If you are trying to return a used car, your best bet may be your state’s consumer protection laws. Check to see what you’re legally entitled to where you made your purchase.

Unwinding a car purchase is tricky and headache-inducing. To help avoid being put in this situation, use NerdWallet’s guides on how to buy a new car and how to buy a used car .

When returning a car might be possible

It’s unlikely you’ll be able to return a car you just bought. But if that’s an option, make sure you have all your paperwork when you make the return, and ensure the vehicle is in the same condition as when you bought it.

Here are some situations in which you’ll be able to return a car:

There’s a stated return policy

Dealers may offer a return policy, allowing you to return your car within a certain number of days and/or miles driven. This is your best bet — and the most hassle-free way — to return a car to a dealership.

However, dealers are not legally required to offer a return policy, and most choose not to. For new-car dealers, the math doesn’t work in their favor. New cars usually depreciate once they’re driven off the lot, and if the dealer were to try to resell a returned car, it would have to be sold as a used car at that lower price point. In general, returns are unlikely because processing one can be time-consuming for the dealer.

But if you bought your vehicle from an online retailer, return policies are the norm. Online retailers — those that allow you to complete the purchasing process from home, such as Carvana — generally allow you to return vehicles because you can’t take a pre-purchase test drive the way you can at a dealership.

You purchased a contract cancellation option

Some dealers offer a contract cancellation option, and they may be required to depending on the state they operate in. For example, California law requires used-car dealers to allow buyers to purchase a two-day contract cancellation option when the purchase price is less than $40,000.

You bought a ‘lemon,’ or a defective vehicle

If you believe you’ve purchased a defective vehicle, you may be protected by state and federal laws, also known as lemon laws. Your car’s eligibility may depend on whether the vehicle is new or used.

Don’t expect this to be a quick path to returning your car. There are strict requirements before a car qualifies as a lemon and you can get a refund or replacement.

For example, for a new car to be declared a lemon in New York, the manufacturer has to attempt unsuccessfully to repair your car at least four times, or you can't use your car for 30 days or more because it's being repaired by the dealer.

In most states, lemon laws do not apply to used cars. However, a few states offer used-car lemon laws, although each one has different criteria for what qualifies as a lemon. New York’s used-car lemon law covers only cars purchased from a dealer, while in Massachusetts, a used car sold by a private party can qualify as a lemon if you can prove the seller knew about a defect but did not disclose it.

Check your state’s laws to see what options are available to you.

Looking to finance or purchase a car?

LightStream - New car purchase loan

NerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.

Visit Lender

on LightStream's website