Can I cancel a contract within three days of signing it?
QUESTION: I've heard of a law that allows consumers to bail out of sales -- including cars and houses -- within 72 hours of the sale. What are the specifics?
ANSWER: Bailing out of a purchase you've agreed to isn't quite that easy -- a contract is, after all, a contract. However, both federal and state laws contain some quick escape provisions, mostly designed to protect consumers from decisions they may have been pressured into.
For example, there is a federal law (and similar laws in every state) allowing consumers to cancel contracts made with a door-to-door salesperson within three days of signing. For example, you might use that law after hastily agreeing to have someone repave your driveway, deliver lawn fertilizer, or put a new roof on your house.
Another federal law allows you to cancel most contracts for second mortgages or refinances of your home within three days of signing. But this law does not allow you to cancel a contract for a mortgage you got to purchase your home.
In addition, many states allow you to cancel written contracts covering the purchase of certain goods or services within a few days of signing. Examples include contracts for dance or martial arts lessons, health club memberships, dating services, weight loss programs, time share properties, and hearing aids.
No law gives you the right to cancel a contract to buy a car. But there is such widespread misunderstanding about this that your state, California, requires car dealers to specifically notify car buyers that they do not have the right to cancel the contract.
Check with a local lawyer (free initial consultation) who knows the laws where you are. The law in this case may (or may not) pre-empt any written contract. If it turns out more is owed back, go back to them again armed with the correct info., then if they don't cooperate sue in small claims court.
Or you may have just paid what Dave Ramsey calls a stupid tax. :) IOW
I've sold 1000's of cars during my career. Do not remember a single time I ever kept ANY of a person's (even where receipt specifically stated "non-refundable") deposit he left on a car when he returned and asked to cancel the deal. Most sales were of used cars. I don't think our state, SC, requires seller to refund deposits which are tendered and receipted properly; and to minimize non-serious, time-wasting deposits, I began writing receipts to read as "...to take said car off the market and making it unsellable to anyone else through
6-15-2009". Guess I felt I could be a real pain IF he came back with an arrogant, demanding attitude. Even after such receipts if buyer had a problem, either with obtaining balance of $ or with buyer's remorse, I refunded it. I figured if he started out unhappy, he'd never be a sold or a repeat customer. And repeat customers were the backbone of my business. I believe in your case, and assuming not too much time had passed, AND you had gone back with a non-demanding attitude and asked to talk to the owner, you could have gotten a full refund. Even our new franchised dealers pretty much adhere to policies like mine above. We think it takes a real a** to keep a person's deposit upon a short notice of asking for retraction, and pretty much adhere to the Golden Rule. Yes, I think half of $4000 is excessive! Even in higher cost-of-living states. Would you have been happy had he asked to keep, say $500? Assuming you had been decent the next morning, you might contact Visa and find out about your prospects of disputing the deal. However, had you acted otherwise, they might not "go to bat for you"--and they WILL find out. S.
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