A new car is a major purchase for most of us, and it's important to consider all aspects of the transaction before making a commitment. In most of the U.S., once you have signed a contract, you are stuck with it. However, there are a few exceptions, some of which derive from laws put in place to protect the consumer.
The so-called Lemon Law is in effect in all 50 states. Although the law varies from state to state, the basic law protects the consumer from the manufacturer's breach of warranty. This requires the manufacturer to repair or replace the faulty vehicle or, if that is not possible, to refund the consumer's money. Variations on state laws can be found online -- including the time period in which you may make your claim -- and some states even have lemon laws that extend to used cars as well as new vehicles. Check your state lemon law before you make your purchase (see Reference section).
Few states offer a hard-and-fast buyer's remorse law, although some individual dealerships include it in their contracts. California dealers are required by law to offer the buyer a three-day return policy, although there is a fee imposed. It is best to check with your state's Attorney General's office to find out just what the laws are rather than rely on the car dealership.
Some individual dealerships have an in-house return policy. CarMax, for instance, offers a five-day return policy and although it is not enforced by a state law, it is in their contract and so is enforceable. If a dealer makes you such an offer, make sure you get it in writing rather than just as a verbal promise. As the movie mogul Sam Goldwyn famously said, "A verbal contract ain't worth the paper it's written on."
Remember that in nearly all cases, once you have signed the contract, the car is yours. Also, once you drive it off the lot, it technically becomes a used car, so even if you are allowed to return it, you are most likely going to take a financial hit. There are, however, some exceptions. Some dealership have a 24-hour "back out" clause that allows the buyer to cancel the deal, but only if the car has not yet been delivered. Another exception is when a non-emancipated minor buys a car and the parents don't approve. In most states, that deal can be canceled.
