Yes, you can cancel a new car purchase, but it is notoriously difficult and depends entirely on your state's laws and the dealership's policies. There is no federally mandated "cooling-off period" for vehicle purchases in the U.S. once you've signed the contract. Your ability to back out hinges on a few critical factors: whether you've taken official delivery of the car (driven it off the lot), if the financing fell through, or if your state has a specific cancellation law.
The most significant factor is taking delivery. Signing the paperwork is one thing, but once you drive the vehicle off the dealership lot, the sale is almost certainly final. The contract is considered executed. Before that point, you have more leverage. If you haven't taken possession, you may be able to cancel, but the dealership is likely to keep your deposit as liquidated damages for taking the car off the market.
A "spot delivery" or conditional financing can be your escape route. This happens when you drive the car home before the dealer finalizes your loan with a bank. If the financing falls through, the dealer cannot hold you to the original contract terms. You can return the car and cancel the deal, though you must return the vehicle immediately and in the same condition.
A few states, like California, have unique laws that may offer a right to cancel within a short window (e.g., two days) for certain types of sales, but these are exceptions, not the rule. Your best course of action is to be absolutely sure before you sign and to never rush the process.
| State | Cooling-Off Period Law | Key Conditions & Notes |
|---|
| California | 2 Days | Applies only to certain purchases made at a location other than the dealer's permanent place of business (e.g., your home). |
| Federal Trade Commission (FTC) | 3 Days | Applies to sales made at your home, workplace, or dormitory (not the dealership). |
| New York | No General Law | No statewide cooling-off period for dealership purchases. |
| Texas | No General Law | Finality of sale is emphasized upon signing the contract. |
| Florida | No General Law | Sale is considered final upon delivery of the vehicle. |
