Hammering the Myths Regarding Vehicle Issues
1. The three-day right to cancel rule. In the many years I have been handling vehicle cases I have seen only ONE Bill of Sale which allowed the buyer a right to cancel the transaction. And as I recall this right to cancel was limited to three days after the date of the purchase. I should have framed this Bill of Sale as it is truly the exception to the general rule. Unless there is a state or federal law that specifically allows a right to cancel the vehicle purchase (and you better know of such a law prior to signing those purchase documents…) the deal is done once the ink dries on the paperwork. In fact most Bills of Sale and other similar documents clearly state that the deal is final and cannot be cancelled. So do your homework before you buy.
NOTE: A somewhat one-sided right to cancel exists in the case of a conditional delivery sale which is also known as spot delivery or yo-yo sale. This right to cancel is weighted in favor of the vehicle dealer and is fraught with questions. Click here to learn more about conditional delivery agreements.
2. All vehicles come with a warranty. Related to Myth #1, discussed above, some people believe if they have problems with a vehicle after the purchase the seller is legally required to pay for certain repairs. Some states, including Connecticut, Kansas, Maine, Maryland, Massachusetts, Minnesota, Mississippi, New Jersey, New York, Rhode Island, Vermont, West Virginia, and the District of Columbia, prohibit “as is” sales for many used vehicles. Note, however, that North Carolina is not on this list. This means the North Carolina consumer should be sure to get all warranties in writing…..do not rely on the seller’s “word” that they will “take care of any problems with the vehicle”. When you purchase your vehicle from a vehicle dealer you should see and receive a Buyers Guide window sticker which clearly states if your vehicle comes with a warranty. And be sure to know if you have a warranty or a vehicle service contract—-there is quite a difference.
3. The dealership must give me notice before repossessing my vehicle. Unless state law requires advance notice, the only “notice” you will probably get would be the statement of your responsibilities and obligations as the vehicle purchaser and the consequences for failing to meet them. Click here for a quick repo review.
We live in a “buyer beware” world so beware and be wary when it comes to vehicle issues. After reading this post you should take a few minutes more to read the A to Z Guide to Vehicle Issues. If you are contemplating a decision to spend several hundreds of dollars over several years on a vehicle isn’t it worth a few minutes of your time to sharpen your focus? Happy reading and consider yourself well-informed!
- Posted in: Car Law/Vehicle Law/Lemon Law ♦ Consumer Law/Consumer Protection ♦ Repossession ♦ Tips and Facts ♦ Vehicle Financing and Transactions ♦ Warranties and Vehicle Service Contracts
- Tagged: auto dealer, conditional delivery, consumer, default, false, McArthur sale, myth, notice, repossession, right to cancel, spot delivery, used car, vehicle service contract, warranty, yo-yo sale