Can You Return a Vehicle the Next Day After Purchase?

Many new car buyers experience "buyer's remorse" shortly after purchasing a vehicle. Once they get the car home, they feel bad about the decision and want to return it. In most cases, you will not be able to return the car, but occasionally, certain programs allow you to give the car back.

Three-Day Rule

The three-day cooling off rule was put into effect in 1972 and protects consumers from being stuck with certain items with which they are not happy. However, the three-day cooling off law does not apply to new vehicles, only to items sold for more than $25 in locations other than the company's normal place of business.

Manufacturer Programs

In some cases, buyers can take advantage of manufacturer programs that provide a return policy. For example, in 2009, General Motors Co. offered a 60-day return policy that allowed consumers to return a car for any reason. Most car manufacturers do not offer this type of program, but occasionally, special programs arise. If you wish to take advantage of this program, you must abide by the rules of the return policy.

Used Cars

You might be able to return a car if you purchased it from a used-car dealer. While most new car companies do not have a return policy, some used-car sellers offer a return policy for vehicles. This is to ease customers' fears about buying a car that does not run well or has some other issues.

Lemon Laws

If you take the car home and realize it has something significantly wrong with it, you might be able to take advantage of lemon laws. Every state has lemon laws that protect consumers from buying cars that do not work. If the car has something significantly wrong with it, you might be able to return it after giving the dealer a chance to fix the problem.

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How to Sell a Used Car With a Loan

You can sell your car even if you still owe money on it. Once you sell the vehicle, you'll be able to bring the money to the bank and obtain a lien release or the title (if your state holds it while money is owed) to give to the new owner. If you owe more money than you can sell the car for, you have to come up with the rest of the money to cover the payoff amount.

Instructions

1

Call the bank to which you make payments. Ask the representative for your payoff amount. Also ask for the per diem amount, which is the interest charge added on a daily basis. Add the per diem amount to the payoff each day until your car is sold to determine the payoff amount. Write this number down. If you make a payment during this time, you should call and get an updated payoff figure.

2

Search Internet used-car appraisal guides to determine how much money you could get by selling your vehicle. Several guides are listed in the resource section on this page. Make sure to research the private sale value---you'll have several sale-type options. Check more than one guide and select a median figure between the difference in prices, or check online to see how much similar vehicles are selling for in your area. If you owe more than you're able to sell the car for, you will have to come up with the remaining money owed to pay off your car to release the lien for the new owner. If you owe less, you could make a profit.

3

Advertise your car for sale. Check local Internet classified sites like the ones listed below on the "resources" section. Advertise online through your newspaper, pay for a print or online advertisement, or do both. Park your vehicle in a high-traffic area. Affix a "for sale" sign, or write this on your back window with a paint marker meant for glass.

4

Accept cash or a bank check for your vehicle to protect yourself once you find a buyer. Do not accept a personal check. Bring your buyer to the bank to pay off your loan. If you live in a non-title-holding state, your lien release is given to you immediately, which goes with your title to give to the buyer. Your buyer does not need to be present for this transaction, but may want to be present to protect his own funds and complete the transaction. Any additional money beyond the sale amount that is owed on the vehicle must be given to the bank at this time.

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How to Turn in a Leased Car When the Lease Is Up

Leasing banks may differ slightly on lease-return requirements. Most lessors send out mail that details your end-of-lease options and offers instructions for the return procedure. Many banks also offer or require an inspection process, free of charge to you. The bank will provide you with a number to call to arrange an inspection so you'll have time to repair or service the vehicle before the end of your lease. Unless your car is in perfect condition, consider completing an inspection to ensure you won't pay end-of-lease fees for excess wear and tear.

Instructions

1

Contact your leasing bank several months before the end of your lease to inquire about the lease-end process. You might be instructed to sign into your lease account at the lessor's website to print forms and receive instruction. If you don't want to use the online option, ask to have documents and an explanation of the process mailed to you.

2

Ask your lessor if it provides a free vehicle inspection. If so, contact the inspector and make arrangements to have your vehicle inspected at your convenience. Some inspectors come to your home or work, or you may have to meet at a dealership.

3

Fix any issues suggested by the inspector. Body damage might require an insurance claim or you might need to take your vehicle to a service shop to complete required maintenance, such as tire replacement. If you don't take advantage of the inspector's suggestions, you'll likely owe your leasing bank money for excess wear and tear fees.

4

Complete any forms required by your bank before returning the lease. Call a dealer to make an appointment for the return and clean out your vehicle completely. Wash and detail the vehicle before your appointment.

5

Arrive at your appointment with your paperwork and any items that came with your vehicle, such as extra keys, accessories and the owner's manual. Provide your completed paperwork to the person handling your lease return. Sign additional paperwork with your dealer representative, such as an odometer statement and a statement documenting the items returned with the vehicle.

6

Ask the dealer representative to make copies of any documents you signed so you may keep them for your records. Check your vehicle over one last time to ensure you removed your belongings. Remove your insurance cards from the glove compartment and make sure you didn't leave any original lease paperwork in the owner's manual.

7

Remove your license plates from the vehicle and leave the car behind. Save the copies of your signed documents for several months after the lease return in case the leasing bank makes an error, such as charging you over-mileage fees or for an extra set of keys.

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The Lemon Law Guide

When buying a new car, you want to know that it will perform as it should and drive without any problems. If your new car has a problem that keeps it from driving, you may have a lemon on your hands. Lemon laws can work in your favor to help you get a replacement car.

Lemon Law

When you buy a new car that breaks down shortly after you purchase it, lemon laws can protect you. A lemon is defined as a new car that has a substantial problem that has not been fixed within a reasonable number of tries. It could also be a car that has been out of service for a certain amount of time. Each state defines these terms differently depending on their own state laws. If your car is determined to be a lemon, you could get a replacement car from the dealer that sold it to you.

Car Issues

To qualify as a lemon, your car has to have some serious problems. For example, if your car will not start or dies while you are driving, this could be classified as a lemon. If you have a car that has serious safety issues, like the brakes not working, it could also fall under lemon laws. The issues for your car have to be relatively serious before you can expect a dealer to replace the car. Before you can file a lawsuit against a dealer, you must be able to show that your car has serious problems.

Specifics

Each state has different rules when it comes to how many times a dealer is allowed to try to fix a problem with a car. In most cases, the dealer or manufacturer has four tries to fix a substantial defect with the car. They also can try to fix a serious safety issue with the car twice. As far as total time is concerned, the car can be out of commission for 30 days while the dealer is trying to fix it. If these limits are exceeded, your car may qualify as a lemon.

Lawsuit

If you think that you might have a lemon car, you may want to consult an attorney. Your attorney will be able to look at your situation and determine if a lawsuit would be in your best interest. You can sue the car dealer for a violation of the Magnuson-Moss Warranty Act. This is a federal law that deals with warranties on any product over $25. You could also sue based on your state's lemon laws. If you win, you can get the car replaced and you may be able to get reimbursed for attorney fees. If you lose, you might have to pay the manufacturer's attorney fees.

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What Does It Mean to Refinance a Car Loan?

Refinancing a car loan is essentially replacing the current car's loan with another. Reasons for wanting to do this vary, but some reasons include wanting a better interest rate or needing a longer term to lower payments. Learn more about why you might consider a vehicle refinance and how to go about pursuing one.

Interest Rates

Some borrowers may have purchased a vehicle during a time when their credit was not in good standing, resulting in a higher than average interest rate. Perhaps rates have dropped or a potential lender provides special offers for car loans that would benefit the borrower. To fully gauge the effect an interest rate has on an overall loan payback amount, use an auto loan calculator: enter in a loan amount and change the interest rate to gauge differences. The Edmunds website offers one free to use.

Term Adjustment

A borrower might also want to refinance to lengthen the term of his loan, which often results in a lower payment. If a borrower has several thousand dollars to put toward her loan amount, doing so toward the original loan will not lower the payment; it will only allow her to pay off the loan early. Borrowers can refinance their current loan and put money toward it to enjoy a lower payment. Every $1,000 put toward a loan equals about $20 per month in payment, which can benefit some borrowers who need to modify their loan amounts.

Process

To refinance a loan, you must obtain the total payoff amount due to your original lender. You can apply to a bank of your choice either online or in person. Once you obtain an approval, you must provide proof of insurance to your bank. Your new bank, as the vehicle's new lien holder, will contact your old bank to satisfy the loan amount and get the title (if in a title holding state). Otherwise, the lien release is sent to the bank, who notifies the state's Department of Motor Vehicles of the vehicle's new lien and cancellation of the old one. You will receive a new title reflecting the lien change.

Considerations

Some borrowers will not be able to refinance their car loan. If the borrower originally carried money over to a current loan or paid more for the car than they should have, loan-to-value ratios will be inconsistent with bank lending requirements. For example, you cannot borrow $15,000 for a vehicle only worth $8,000, even with excellent credit. Work with your bank if this is an issue; you may have to put money toward the refinance to obtain an approval.

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How to Recover Personal Items From a Repossession

During difficult financial times, consumers find themselves having to let go of their cars through repossession. However, just because you lose your car does not mean you have to lose your personal belongings that were in the car at the time of its repossession. You can seek legal action in small claims court if the repossession company does not give you your items back.

Instructions

1

Make a list. Try to remember everything you had in your car. Document items such as car seats, books, CDs or other equipment you may have had in your car. Do not leave anything off the list, but on the other hand do not add things that were not in your car.

2

Obtain the phone number and mailing address for both your creditor and the tow company. Call each company and ask whether it has a specific form to request the return of your personal property. If they do, ask how to get one and where to send it. If they do not, send a letter requesting the return of the items left in your car and include the list. Let the repossession company know that you did not abandon the items and you intend to get them back.

3

Write a request. Include your name, address, telephone number and identify the car by giving the date it was repossessed, the make, model and year. List a few different dates you are available to pick the items up and ask the company to select one of them.

4

Mail the request to both the tow company and creditor. To document receipt of your request purchase proof of delivery from the post office, which you can track online. If you want your items back in a timely manner, send the request priority mail or overnight to ensure that the companies get the request within the next few days.

5

Follow up. If you do not hear about the return of your items within a couple weeks, check back with the creditor and tow company. Make sure they received your request for return and inquire how long the process will take.

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How to Calculate Finance Charges on a Car Loan

An individual may borrow a certain amount of money to buy a new or used car from a bank or other lender. The loan amount is commonly referred as the principal. Under the car loan agreement, the money is paid back in regular monthly installments over a designated period of time. Since the lender typically provides the money at a specified annual percentage rate (APR), you will pay back not only the principal, but also a certain amount of the interest (finance charges). As an example, calculate the finance charge for a $25,000 car loan given with APR of 6.0 percent for five years.

Instructions

1

Calculate the loan duration in months by multiplying the number of years and 12. In this example, the five-year loan would be multiplied by 12 to give you 60 months.

2

Divide the loan APR by 12 and 100 to calculate the interest rate per month. In our example, the monthly interest rate is 6.0 percent / (12 x 100) = 0.005.

3

Add 1 to the monthly interest rate; then raise the sum to the power that equals to the loan duration in months. In our example, the value is (1 + 0.005)^60 = (1.005)^60 = 1.34885.

4

Subtract 1 from the value computed in Step 3; 1.34885-1 = 0.34885

5

Multiply the monthly interest rate and the value computed in Step 3, and divide the product by the number obtained in Step 4. In the example, (0.005 x 1.34885) / 0.34885 = 0.019333.

6

Multiply the loan amount by the number from Step 5 to calculate loan monthly installment payments. In the example, payments are $25,000 x 0.019333 = $483.32

7

Multiply the monthly payment by the loan duration to compute the total amount of money you will pay. Given the monthly payment of $483.32, you would pay 483.32 x 60 months = $28,999.20

8

Subtract the car loan principal from the total amount (Step 7); the difference is the finance charge for your loan. in our example, the finance charge is $28,999.20 - $25,000 = $3,999.20.

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