Can you return a used car?

Not under federal law. The FTC says federal law doesn't require dealers to give you three days to cancel and return a car. Some states require dealers to give you a right to cancel. In others, you can return a car only if the dealer chooses to offer that. Dealers may call it a cooling-off period, a money-back guarantee, or a no-questions-asked return policy.

California is now one of the states that requires it, for most used cars. It doesn't cover new cars. The notice California dealers must print on the first page of the contract starts: “California does not have a cooling-off period for new vehicles.”

Outside California, ask the dealer for its return policy in writing before you sign, and check with your state attorney general or consumer protection office for your state's rules.

California's Combating Auto Retail Scams (CARS) Act, passed as SB 766, took effect on October 1, 2026. Under it, a dealer can't sell or lease you a used car for $50,000 or less without giving you a 3-day right to cancel. The notice in your contract says you have 3 days to cancel “for any reason.” The dealer can't charge you for the right itself, only a restocking fee if you use it.

Covered: most used vehicles you buy or lease from a dealer with a purchase price of $50,000 or less.

Not covered:

• New cars.
• Used cars with a purchase price over $50,000.
• Motorcycles.
• Cars sold at auction.
• Private sales. The law applies to dealers.
• Buying out your own lease when you already have the car.
• Vehicles with a gross weight rating of 10,000 pounds or more, fleet sales, and business buyers who buy five or more vehicles a year from the dealer.
• Any car driven more than 400 miles since you signed.

If your deal qualifies, the dealer must give you a separate form titled “3-Day Right to Cancel Used Car Purchase or Lease.” It shows your deadline, how the restocking fee is figured, and the 400-mile limit. If you didn't get one, ask for it before you drive away.

The new right replaces California's old rule, which only made dealers offer a 2-day cancellation option on used cars under $40,000, and let them charge you for it. A dealer can still choose to give you more, like a longer window or a lower fee.

Day one is the day after you sign. Your right ends when the dealership closes on the third day. If the dealership is closed that day, you get until the next day it's open.

For example, if you sign on a Friday, your 3 days are Saturday, Sunday, and Monday. Your deadline is closing time on Monday. If the dealership is closed that Monday, your deadline moves to closing time on the next day it's open.

The fee has two parts:

1. 1.5% of the car's sale price, but at least $200 and no more than $600.
2. If you've driven the car more than 250 miles, $1 for each mile over 250, up to $150.

Say you bought a used car for $18,000 and drove it 310 miles before you brought it back:

• Price part: 1.5% of $18,000 is $270. That's between $200 and $600, so it's $270.
• Mileage part: 310 miles minus 250 is 60 miles, so $60.
• Total restocking fee: $330, taken out of your refund.

On a $10,000 car, 1.5% is only $150, so the $200 minimum applies. On a $45,000 car, 1.5% is $675, so the $600 maximum applies. The most a dealer can charge is $750: $600 plus $150 for miles.

If the dealer charged you a fee to ship the car in, it can keep what the shipping actually cost it instead of the 1.5% part, but not more than the 1.5% part would have been. If your refund doesn't cover the restocking fee, you pay the rest when you cancel.

The law says the right applies only if you personally bring these to the dealer that sold or leased you the car, during business hours, before your deadline:

1. The car, in the same condition you got it, apart from normal wear and tear and any problem that showed up that you didn't cause. It can't have any loans or liens against it other than the one from this deal.
2. Any cash or items you got from the dealer as part of the deal.
3. Any part of the restocking fee that won't come out of your refund.

The dealer can ask you to sign the paperwork needed to cancel the deal and refund you. It's also smart to hand over a short, signed note that says you're canceling under California's 3-day right to cancel, with the date and time, and keep a copy.

What the dealer owes you:

• A receipt that shows the date and time you canceled and an itemized list of anything it took out of your refund.
• Within 48 hours, a canceled contract and a full refund, minus the restocking fee and any other deduction the law allows. Bank processing delays don't count against the dealer. If you paid by check or another way that doesn't clear right away, the dealer can wait until 2 business days after your payment clears.
• Your trade-in back, with every key you gave them. If the dealer already sold it or started transferring its title, it must pay you the highest of these: the trade-in value in your contract, what it sold for, or its fair market value. It can subtract what you still owed on it. If the dealer says it sold your trade-in, it must give you a copy of the sale document.

The law also bars dealers from getting in your way. A dealer can't overcharge the restocking fee, hold onto your down payment or trade-in, claim damage beyond normal wear without a reasonable basis, or say the person who can refund you isn't available.

The time goes fast. Start these the day you get the car:

1. Run a title-history report by VIN. Reports from the federal NMVTIS system show title brands like salvage and flood from any state, total-loss and salvage records, and the latest recorded odometer reading. Start with the VIN check above. It also points you to NHTSA's free check for unrepaired recalls on this exact car.
2. Get an independent inspection from a mechanic you choose. Use the inspection planner to note what to ask and what they find.
3. Compare the signed contract with the written offer you agreed to: the price, trade-in value, down payment, APR, amount financed, loan length, and every add-on. Find a fee or product you didn't agree to? See which dealer fees are legit.
4. Watch the miles. Keep it under 250 to avoid the mileage charge, and never go over 400, or you lose the right.
5. Decide before the deadline. Once the 3 days or 400 miles are up, this right is gone.

Keep the “3-Day Right to Cancel” form, your contract, your receipt, and a dated photo of the odometer when you return the car. Write down who you talked to and when.

California dealers are licensed by the DMV. Its CARS Act page links to its dealer complaint form. You can also file a complaint with the California Attorney General. The new right doesn't take away any other right you have to cancel a deal under other laws, so a local consumer attorney can tell you your options.