California's "No Cooling-Off Period" Rule and What It Means for Lemons - Los Angeles Lemon Law Attorney | California Lemon Car Lawyer (2024)

Have you ever made a purchase only to regret it the minute you got home? Most people have. With smaller purchases, you may not care enough to bother returning a regretted item. Still, if you’ve made a larger investment, you’ll probably put in the time and effort to return the product and get your money back.

If only it worked that way with cars. Unfortunately, in California, there’s no wiggle room for people with buyer’s remorse. If you’ve bought a car in the state, you have no right to have it returned because of a regulation known as the “No Cooling-Off Period” Rule. Keep reading to learn what this rule means, how it impacts your car-buying experience, and what to do if you’ve purchased a car that turned out to be a lemon.

What Is the “No Cooling-Off Period” Rule?

In most industries, it’s considered normal to accept returns. California specifically requires most retailers to post and communicate their refund policies unless they offer full refunds within a week of the sale. However, car dealers are a notable exception to the rule.

Unlike other stores, a dealership is protected by the “No Cooling-Off Period” Rule. This rule states that no car dealership is obligated to accept the return of a car that’s been fairly purchased. The rule’s name refers to the first reason why it was put in place. Many people will buy a car when they’re excited and take it home only to “cool down” about the purchase. After sleeping on it, they regret the purchase and want to return it. However, it’s unfair to both the dealership and the salesperson if someone takes up their time and effort on a car only to return it the next day.

The other reason for the rule comes from people taking advantage of lenient return policies. People would purchase cars, drive them around wherever they wanted, then return them instead of renting a vehicle. That devalues the vehicle and makes it harder to sell. By removing the dealership’s obligation to accept returns, California prevents people from taking advantage of these businesses.

Exceptions to the Rule

There are two exceptions to the no cooling-off period rule. First, if you bought a vehicle through a “subject to lenders credit approval” conditional sale, you can and must return it if the dealer can’t secure the financing they promised. Of course, this is less of a return after a sale and more because the deal failed.

The other exception is when the dealer has committed fraud. For example, if the dealer told you things about the car that aren’t true, you can press them to accept the return of the vehicle. Dealer fraud includes things like:

• Not telling you that the vehicle was used as a rental
• Not telling you that the vehicle was in an accident or had hidden damage
• Not telling you that the warranty has expired
• Changing the odometer reading
• Lying about features
• Bundling services into the purchase price without telling you

If you notice any of these things, it’s a good idea to return the vehicle because the dealer may be ripping you off or hiding other, more dangerous facts from you.

How the No Cooling-Off Period Rule Affects Your Rights

It’s obvious that the rule makes it almost impossible to return a car. It’s an almost total ban, meaning you can’t return a car because:

• You’ve realized it’s too expensive
• You don’t like how it looks
• It doesn’t fit in your garage
• It doesn’t work the way you want it to
• It’s unsafe

As long as the dealership made all of the appropriate disclosures about the vehicle before you chose to buy it, it’s officially your problem the minute you take physical possession. You’ll notice that this means if you buy a new car that’s a lemon, you’re stuck with it. Lemons are considered the manufacturer’s fault, not the dealership’s, so you’ll need to take legal action appropriately.

Avoiding Lemons When You Can’t Return a Car

So, you essentially can’t return a car in California unless the dealer lied to you or a sale falls through. That means that you need to be extremely careful when shopping for a new vehicle to make sure you’re prepared to commit to it. Here’s how to judge whether a vehicle is a lemon before you make any permanent decisions.

• Test drive the car in many conditions. Some vehicles have faults that are only noticeable at highway speeds, on bumpy roads, or when stopping and starting frequently. Try to test-drive vehicles in as many different conditions as possible to check for mechanical problems with the brakes, engine, or suspension.
• Get CarFax or similar reports before you buy. If you’re buying a used car, always get a report on its previous history. You’ll learn about accidents, maintenance, and problems the vehicle has had in the past. Frequent maintenance for the same problem is a sign the car might be a lemon.
• Have a mechanic you trust perform a pre-purchase inspection on used cars. Your mechanic will be able to spot problems with essential systems and give you advice about whether the vehicle is a good deal or dangerous.
• Read the contract carefully. Last, make sure you understand every single aspect of the purchase contract. In particular, read the warranty carefully, so you know what is and isn’t covered.
• Consider buying a three-day right to cancel. Some dealerships will offer special contracts that give you a three-day right to cancel and return the vehicle. These contracts are typically more expensive, though, and if you return it, you may lose the fee for cancellation.

Don’t Buy a Car You Might Regret

Since you can’t return cars in California, it’s on you to make a purchase you won’t regret. Always do your research and check vehicles carefully to ensure you’re confident you’ll love the car before making it yours.

If you’ve already purchased a car and it’s a lemon, you’re not out of luck. However, you will need to take legal action against the manufacturer. If you’re stuck with a lemon, reach out to the experienced lemon law lawyers at Johnson & Buxton. The Lemon Law Guys will help you make lemonade and work with the manufacturer to get a safer, more reliable vehicle.