Tips on Buying Cars: Getting out of Car Purchase Contract, physical delivery, purchase contract

Question
Yesterday I signed papers on a new car in Virginia, and traded in my old car, giving them the title. Before I left, they realized they needed a few more pieces of information from me (mainly proof that I graduated from college recently for my loan).

I ended up taking my old car back home,and I am suppose to bring in the remaining documents tomorrow. When I got home, I realized that my insurance company gave me an incorrect quote for this new vehicle.

I cannot afford the vehicle with insurance rates that high. Even though I have signed all the papers, I have not driven the new car off the lot, and my financing has not been approved. Can I still walk away from this without any penalty, or am I at the mercy of the dealer? I cannot seem to find any legislation that would help.

Answer
Craig,

Thanks for your question.  You are not bound to any contract until you take delivery of the vehicle and all information is collected by the dealership.  You can get out of the contract without any penalty until you provide them with all of the information and take physical delivery of the vehicle with all of that information being provided.  You are entitled to all of your money back if you left any, and allowed to back out of the deal completely.

Hope this helps.

Thanks - JB