ABA Family Legal Guide

Automobiles

Buying, Renting, and Leasing a Car

Buying a New Car

May I cancel the car contract even after I sign it?

Read your contract carefully before you sign to review the cancellation provisions and to make sure that you understand what the contract means. If you cancel for no reason, you risk losing your deposit. The dealer also might file a lawsuit to recover lost profits, for time spent with you and on your car, and other damages.

You may be able to cancel the contract in some circumstances. For example, your state may have special provisions regarding contracts entered into by minors, and may give minors greater ability to cancel a contract. Most car dealers are aware that special rules may apply to car contracts involving minors, and they insist that the car be bought by, or in the name of, a financially responsible adult. Or if the car you buy is not what the dealer promised, the dealer may have breached its warranty. (See "Warranties and the Uniform Commercial Code" on page 378 in this chapter.) If so, then you might attempt to cancel the contract because of the breach.