Does My Car Sales Contract Allow The Car Dealer To Back Out Of The Sale?

By Law Office of Paul Mankin of Law Office of Paul Mankin posted in Consumer Protection on Monday, June 26, 2017.

If you recently purchased a vehicle and are now receiving a call or letter from your car dealer saying it wants the car back, check your sales contract to see if the dealer has the right to back out of the agreement. Typically, there is a provision called “Seller’s Right to Cancel” on the back of the long yellow copy of the contract you were given at the time of purchasing the vehicle. In California, this contract provision usually states that the car dealer has 10 days to back out of the agreement. Although this is a typical provision always double check your contract before returning the vehicle. If your contract does not have this provision or the dealer first contacts you about returning the vehicle after 10 days, you most likely do not need to return the vehicle.