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10 Day Right to Cancel, Canceled Car Sales, & Auto Fraud

California law allows dealers a 10-day right to cancel window in which they can revoke the sale of a vehicle. This can be frustrating for vehicle buyers who have gone through the long and stressful process of buying a car, truck, motorcycle, or other vehicle. Even though a dealer has a right to that limited window in which they can cancel a sale, they must follow strict regulations so that they are operating in accordance with the law.

Just because your dealer may have contacted you shortly after your purchase to inform you that they were cancelling your recent sale, they must abide by the law or you may be entitled to legal recourse. Even if your vehicle’s sale was canceled within the legally given time frame, you have certain rights that must be observed.

Contact us at the Law Office of Robert Mobasseri at (213) 282-2000 for a free legal consultation. You can also submit an online case evaluation form through our site and a member of our legal team will contact you further to address any questions or concerns you may have regarding your course. Our consultations are free and have no string attached. Our auto fraud attorneys at the Law Offices of Robert Mobasseri have extensive experience handling cases of auto fraud, dealer fraud, repair fraud, lemon law, and consumer protection.

What happens if a dealer cancels your sale, using the 10-Day Right to Cancel Rule?

If a car dealer cancels your purchase contract within ten days, you are obligated by law to return the vehicle. However, you are not without certain rights that your vehicle’s dealer must observe in cancelling the sale:

Your purchase contract guarantees that in the event that your sale is canceled within ten days, the dealer must return to you all consideration – meaning anything you put towards your sale, like a down payment and/or a trade-in vehicle. So, you are legally entitled to a refund of your down payment and/or the return of any vehicle you traded-in towards your purchase.

It should also be noted that a dealer cannot charge you for any miles you accrue on the vehicle after you leave the lot with your purchase. Though you are responsible for any physical damage to the vehicle while it’s in your possession, you can’t be charged for any mileage put on the vehicle.

After you’ve returned your vehicle, the dealer may ask that you sign a second contract to purchase another of the same vehicle, but you are not required to agree to this secondary contract.

What should you do if your car dealer violated the 10-day right to cancel rule?

In order for vehicle dealerships to use the 10-day right to cancel stipulation in your purchase contract, they must strictly observe the guidelines set forth by the law. If you suspect that your dealership violated any aspect of the 10-day right to cancel provision—whether they requested your vehicle after the 10-day window was up, they did not return your full refund or your trade-in vehicle, or any other lapse in following the legal guidelines—you are not without rights and may be entitled to damages.

Contact one our experienced auto fraud attorneys at the Law Offices of Robert Mobasseri at (213) 282-2000. You can also submit a free case evaluation form through our site, to be reviewed by a member of our firm who will contact your further regarding your legal options. Our auto fraud lawyers have an extensive and successful record handling cases of auto fraud, dealer fraud, repair fraud, and consumer protection law.


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Lemon Law Auto Fraud serves the following California counties: Inyo, Imperial, Kern, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Tulare, and Ventura.

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See If Your Vehicle Qualifies Under The Lemon Law
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535Xi $13,000.00
2009
x5 $155,000.00
2009 Charger $58,000.00
2001 H1 $45,000.00
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2004 Suburban $36,000.00
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Disclaimer: The following Lemon Law and Auto Fraud information has been compiled from various public sources. It is presented online for informational use only, and without warranty as to its accuracy, timeliness, or completeness. This site does not replace any official versions of the information presented, nor does use of this information constitute an attorney-client relationship. It is always recommended that you do not make any decisions about any legal matter without first consulting an attorney to ensure that all of your rights are protected, as well as to find out if your vehicle meets the established Lemon Law or Auto Fraud Criteria for your state.