Tuesday, September 25, 2012

How many days do I have to cancel a contract for the purchase of a car?

I get asked over the years about how many days someone has to cancel a contract.   Just recently at JeffJacobsonLaw.com I received an email concerning this. 

Usually, they bought a car and the next day they realized it is not right for them.  So, when can you cancel a contract in Illinois?

First the bad news.  You cannot, I repeat can not, cancel a contract in Illinois unless there is a law that allows you to cancel it.  There are only three laws that allow the cancellation of a contract.  The purchase of a car is not one of them.

Here is a list of some of the items that you may be able to cancel.  Also, please be advised that over time, some of these laws will change.  You should always seek the advice of an attorney prior to making a purchase.  Also, each of these items has exceptions to them.

1.  When you refinance your house, you have 3 days to cancel the contract.  You must make sure you follow the law on cancelling the contract.  Also, this does not apply to a loan you apply for to purchase the home.  It does not apply to loans for business purposes. 

2.  When you purchase something for more than $25 and the sale is at the buyer's home, workplace or dormitory, or at facilities rented by the seller on a temporary or short-term basis, such as hotel or motel rooms, convention centers, fairgrounds and restaurants.  Under the Federal Trade Commission rules, you have 3 days to cancel this contract.

3.       The purchase of a gym contract allows you to cancel the contract within 3 days, or if you move, die or have a disability.  You have to move more than 25 miles from one of their facilities and they cannot find a comparable facility for you within 25 miles.

When cancelling the contract, you must follow the rules for cancelling the contract.

As you can see, the purchase of  a car does not meet any of the exceptions above. 

For more information, including the current laws and how they impact you, go to my web site at www.JeffJacobsonLaw.com or email me at Info@JeffJacobsonLaw.com.

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