California  |  Credit and Debt Law

Legal Question

Asked on: 5/25/13, 2:21 pm

If I signed a contract to purchase a used car but never took delivery, can I cancel the contract?

1 Answer

Answered on: 5/26/13, 6:38 am by Carl Starrett

It depends on what the contract says. A car dealer in California is prohibited from selling used vehicles priced at less than $40,000 retail to noncommercial buyers, without offering a contract cancellation option agreement. The charge for this cancellation option uses a sliding scale, starting at $75 for a used vehicle that costs $5,000 or less, up to 1 percent of the vehicle's purchase price for a car costing from $30,000-$39,999.99.

If you bough the car from a private party or a seller outside of California, then you won't have this provision.

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Law Offices of Carl H. Starrett II 1941-C Friendship Drive El Cajon, CA 92020-1144

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