Once you decide to buy a new car, you need to do a significant amount of research before actually purchasing. You need to research the make and model, as well as the dealership you have in mind. Even if you do everything seemingly correct, problems can arise because nothing is guaranteed to go smoothly. Therefore, at some point it may be necessary for you to break the purchase contract for a new car.
Write a letter to the dealership within three business days of signing the contract, according to Consumer Credit Legal Service, Inc. You have the right to cancel within that time. Include the name and address of the dealership in the letter, and deliver it personally. It needs to arrive within those three days, so do not rely upon the mail.
Read carefully through the contract and the warranty, if it has been longer than three business days. If the dealer has broken the contract or warranty in any way, such as selling a broken-down vehicle, then you can cancel the contract without penalty, according to the American Bar Association.
Inform the dealer you wish to cancel the contract, even if you do not have any legal grounds to cancel, such as a general dissatisfaction with your choice. However, if you do this, the dealer has a right to keep your deposit and can also file a lawsuit against you for lost profits.
Return the car to the dealership once the purchase contract is broken. No matter which method you use to break the contract, you will need to return the vehicle to the dealer in the same condition in which it was purchased.
