Is there a cooling-off period when buying a car?
If you buy a car and soon change your mind, can you give it back and get a refund?
The answer is yes… and no!
When purchasing a car in the UK, a 14-day cooling-off period generally applies to vehicles bought online or over the phone, offering you the right to cancel. But (and this is the big but!), this doesn’t usually apply to cars bought in person from a dealership.
Continue to find out more about your rights when it comes to cooling-off periods.
- Explaining the cooling-off period with car purchases
- The legal framework with cooling-off periods
- The process for returning a car
- FAQs
Explaining the cooling-off period with car purchases
When does a cooling-off period apply?
A cooling-off period is a legally mandated timeframe that allows consumers to cancel a purchase without penalty. Under the Consumer Contracts Regulations (2013), this period typically lasts 14 days.
It applies to goods and services bought online, over the phone, or through mail order, providing consumers with time to reconsider their purchase. However, this cooling-off period doesn’t usually apply to in-person purchases made at a dealership, where the decision is considered final upon signing the contract.
Differences between online and in-person purchases
Under the Consumer Contracts Regulations (2013), the main difference between online and in-person car purchases is the cooling-off period. For online purchases, consumers have a 14-day cooling-off period to cancel the contract and return the vehicle without giving a reason. This protection is in place because the buyer hasn’t seen the car before purchasing.
But, no such cooling-off period exists for in-person purchases at a dealership. Once you sign the contract in person, the sale is typically final, and cancellations may lead to financial penalties or loss of deposits.
The legal framework with cooling-off periods
The Consumer Rights Act 2015
The Consumer Rights Act 2015 protects buyers by ensuring that any car purchased must be:
- 👍 Of satisfactory quality
- 👍 Fit for purpose
- 👍 As described
If a car is faulty or misrepresented, you’re entitled to a repair, replacement, or refund within the first 30 days of purchase. This Act covers new and used cars, giving you recourse if the vehicle doesn’t meet these legal standards.
Sale of Goods Act 1979
The Sale of Goods Act 1979 also requires that goods, including cars, be as described, of satisfactory quality, and fit for purpose. While largely replaced by the Consumer Rights Act 2015, it applies to contracts made before October 2015.
If you bought a car before this date, the Sale of Goods Act governs your rights, including potential claims for faulty or misrepresented vehicles.
Exceptions to the cooling-off period
The cooling-off period has some exceptions and limitations. As mentioned, it doesn’t apply to cars purchased in person at a dealership.
Additionally, it may not apply if the car is customised or made-to-order, as these are considered personalised goods. Also excluded are business-to-business purchases and auctions.
Finally, once the cooling-off period ends, you lose the automatic right to cancel, although you may still have rights under other consumer protection laws if issues arise.
The process for returning a car
Steps to take you returning your car within the cooling-off period
If you decide to return a vehicle within the cooling-off period, these are the steps you must take:
- Notify the seller or dealership in writing, stating your intention to cancel the contract. Make sure to send this within the 14-day window.
- Arrange the return of the vehicle, which might involve taking it back yourself or coordinating collection. Be aware that the car should be in the same condition as when purchased, with minimal additional mileage.
- Keep copies of all correspondence as proof of your request.
Communicating with the seller or dealership
Effective communication is crucial when returning a car within the cooling-off period. As mentioned, begin by writing a formal cancellation letter or email.
This should include key details such as:
🙋Your name
📅 Date of purchase
🚘 Vehicle details
❓Reason for cancellation
Attach copies of the original purchase agreement and any other relevant documents. Keep records of all interactions with the seller or dealership, including confirmation of receipt of your cancellation request. This documentation is crucial if disputes arise.
Refund timeline
Upon notifying the seller of your intention to cancel, they typically have 14 days to process your request, and during this period, you should return the car in its original condition. The seller is obligated to refund the purchase price, including any delivery charges, usually within 14 days of receiving the vehicle back.
However, the refund may be reduced if the car’s condition has deteriorated or it’s done an excessive amount of miles. The seller should inform you about next steps and any deductions.
FAQs
Can I return my car to the dealer within 30 days?
Yes, under the Consumer Rights Act 2015, you can return a car within 30 days if it’s faulty. You’re entitled to a full refund during this period, but this doesn’t apply if the vehicle is simply unwanted.
Can I return a car if I am not happy with it?
Yes, you can return a car if it’s faulty, misdescribed, or not fit for purpose. But, simply being unhappy with the vehicle, without a valid reason under consumer law, doesn’t entitle you to a return or refund.
Is it time to sell your car?
Ready to learn more about valuing, maintaining, and selling your car? Check out our other guides here, covering everything from hybrid and electric car depreciation to converting your vehicle to dual-LPG fuel.