Tips on Buying Cars: cancelling a used car contract before completing payment and taking ownership, toyota camry 2007, cooling off periods


Question
Hello Shari,


I have a question regarding the topic of cancelling a use car contract:



I just signed a contract over the weekend (Saturday afternoon) to purchase a used car (Toyota Camry 2007) from a local dealer. I put down a deposit of $500, and was set on completing the payment for the car (cash) and taking ownership on Monday night (Sept. 29 2008). When I ran a "CarFax" report later on Saturday evening, I realized that the car was a "rental" which was acquired at an auction. This threw red flags in my mind, and I would like to back out of this deal (I know, I should have ran the CarFax report before signing anything, you are right!!).


What are my options here? Is the contract legally binding that the dealer can force me to take ownership, or do I still have some life since I have not completed the payment for the car and drove off the lot with it? Can I just tell the dealer "I am not interested anymore and that I have changed my mind"? I know there are no "cooling-off" periods for used cars, but I want to know my options!


If you can get back to me ASAP (I know you must have many like these), then I would greatly appreciate it.



Thanks so much,



Sam.

Answer
Hi Sam, Every state is different on return policies. But it sounds to me that you haven't completed the transaction (you haven't completely paid for the vehicle, nor have you picked it up?)

Tell the dealer you've changed your mind and the reason for it. He should give you your deposit back if he is a reputable dealer. You are not legally bound to take that car.

Every dealer buys cars from Auctions. They are dealer auctions. Even almost new cars are run through auction, And all rental companies sell this way.

If you are buying from a reputable dealer and the vehicle has warranty you should be okay.

Good luck.