Key Takeaways<\/h2>\n\n- The cooling-off period doesn’t apply when you purchase a car in person at a dealership. Signing the order form is legally binding.<\/li>\n
- A 14-day cooling-off period usually applies if you bought the car online, by phone or by mail order under the Consumer Contracts Regulations 2013.<\/li>\n
- If you took out car finance (HP, PCP or a sale agreement), you have a separate 14-day right to withdraw from the credit agreement under Section 66A of the Consumer Credit Act 1974.<\/li>\n
- Faulty cars are an issue entirely. They are covered by the Consumer Rights Act 2015 regardless of any cooling-off period.<\/li>\n
- Private sales between individuals carry far fewer protections.<\/li>\n<\/ul>\n
![\"Car](\"https:\/\/www.exchangemycar.co.uk\/assets\/empty.png\")
<\/p>\n
What is a Cooling-Off Period?<\/h2>\n
A cooling-off period is a legal timeframe in which you can cancel a contract without having to bear any penalty. It exists to protect buyers from pressure-selling and from making snap decisions on purchases they have not been able to properly inspect.<\/p>\n
The important nuance for cars is that a cooling-off period is not a single, universal rule.<\/p>\n
Cooling-Off Rules for Car Finance: HP, PCP, and Conditional Sale<\/h2>\n
Car finance is where the cooling-off picture gets more interesting, and more commonly relevant, since most new cars in the UK are bought on finance.<\/p>\n
If your agreement is a regulated consumer credit agreement, you have a statutory right to withdraw under Section 66A of the Consumer Credit Act 1974<\/a>.<\/p>\nThe 14-Day Withdrawal Right<\/h3>\n
You have 14 days from the day after signing the finance agreement (or from the day you receive a copy of the executed agreement, if later) to withdraw.<\/p>\n
Unlike returning a product, you don’t need to explain why you’re cancelling. The withdrawal is an unconditional right.<\/p>\n
How to Cancel Your Finance Agreement<\/h3>\n
You can notify the lender either verbally or in writing.<\/p>\n
However, it’s always advisable to submit your request by email or recorded post. This is so you have proof of the date you exercised your right.<\/p>\n
Does Cancelling Finance Cancel the Car Purchase?<\/h3>\n
This is where many buyers become confused.<\/p>\n
Withdrawing from your finance agreement only cancels the credit agreement. It doesn’t automatically cancel the contract to purchase the vehicle<\/a>.<\/p>\nIf the finance and vehicle purchase are separate contracts, you may still be required to pay for the car using another method to cancel the sale.<\/p>\n
That said, many dealer-arranged finance agreements link the finance and vehicle purchase together.<\/p>\n
In these cases, withdrawing from the finance may also unwind the purchase, but this isn’t guaranteed.<\/p>\n
Always read your agreement carefully or confirm the position with your finance provider before assuming you can simply return the vehicle.<\/p>\n
What If the Finance Company Refuses?<\/h3>\n
You can file a legal complaint against your lender if they refuse a valid withdrawal within the 14-day cooling-off period.<\/p>\n
If your lender refuses a valid withdrawal request made within the statutory 14-day period, you should first raise a complaint with them.<\/p>\n
Ultimately, you can file the complaint with the Financial Ombudsman Service<\/a> if it remains unresolved.<\/p>\nDoes a Cooling-Off Period Apply When You Buy a Car In Person?<\/h2>\n
In short: no.<\/p>\n
If you visit a dealership and sign an order form or contract on the premises, the sale becomes final at the point of signature.<\/p>\n
This is the single biggest misconception buyers have about car purchases.<\/p>\n
Once you have signed in person, the contract binds you to the deal as written.<\/p>\n
There may be instances when dealers agree to let customers cancel as a goodwill gesture before delivery. However, in most cases, they have no legal obligation to do so.<\/p>\n
However, if you cancel, you could lose your deposit or be charged for any loss the dealer goes through.<\/p>\n
The one thing that can still be withdrawn separately is a linked credit agreement; more on that below.<\/p>\n
The 14-Day Cooling-Off Period for Online and Distance Car Purchases<\/h2>\n
The Consumer Contracts Regulations 2013<\/a> protect consumers who generally buy a car without seeing it in person. So, if you bought it online, through mail order, or by phone, chances are, you are protected.<\/p>\nThese rules come from EU-derived “distance selling” protections<\/a> and allow consumers to cancel the contract within 14 days of delivery and get a complete refund.<\/p>\n\n- The 14-day period does not start the day you order a car, but the day you receive it.<\/li>\n
- During this period, no fault is needed; you can simply change your mind.<\/li>\n
- The seller must process refunds within 14 days of receiving the car.<\/li>\n
- Some agreements allow you a reasonable test period (for example, a limited number of miles) before you decide.<\/li>\n<\/ul>\n
Get in touch with Citizens Advice to know more about your rights, as it’s a reliable and free resource if a dispute arises.<\/p>\n
Cooling-Off Period Summary Table<\/h2>\n
Because the rules vary so much by scenario, here is a quick-reference summary:<\/p>\n
<\/p>\n
What is a Cooling-Off Period?<\/h2>\n
A cooling-off period is a legal timeframe in which you can cancel a contract without having to bear any penalty. It exists to protect buyers from pressure-selling and from making snap decisions on purchases they have not been able to properly inspect.<\/p>\n
The important nuance for cars is that a cooling-off period is not a single, universal rule.<\/p>\n
Cooling-Off Rules for Car Finance: HP, PCP, and Conditional Sale<\/h2>\n
Car finance is where the cooling-off picture gets more interesting, and more commonly relevant, since most new cars in the UK are bought on finance.<\/p>\n
If your agreement is a regulated consumer credit agreement, you have a statutory right to withdraw under Section 66A of the Consumer Credit Act 1974<\/a>.<\/p>\n You have 14 days from the day after signing the finance agreement (or from the day you receive a copy of the executed agreement, if later) to withdraw.<\/p>\n Unlike returning a product, you don’t need to explain why you’re cancelling. The withdrawal is an unconditional right.<\/p>\n You can notify the lender either verbally or in writing.<\/p>\n However, it’s always advisable to submit your request by email or recorded post. This is so you have proof of the date you exercised your right.<\/p>\n This is where many buyers become confused.<\/p>\n Withdrawing from your finance agreement only cancels the credit agreement. It doesn’t automatically cancel the contract to purchase the vehicle<\/a>.<\/p>\n If the finance and vehicle purchase are separate contracts, you may still be required to pay for the car using another method to cancel the sale.<\/p>\n That said, many dealer-arranged finance agreements link the finance and vehicle purchase together.<\/p>\n In these cases, withdrawing from the finance may also unwind the purchase, but this isn’t guaranteed.<\/p>\n Always read your agreement carefully or confirm the position with your finance provider before assuming you can simply return the vehicle.<\/p>\n You can file a legal complaint against your lender if they refuse a valid withdrawal within the 14-day cooling-off period.<\/p>\n If your lender refuses a valid withdrawal request made within the statutory 14-day period, you should first raise a complaint with them.<\/p>\n Ultimately, you can file the complaint with the Financial Ombudsman Service<\/a> if it remains unresolved.<\/p>\n In short: no.<\/p>\n If you visit a dealership and sign an order form or contract on the premises, the sale becomes final at the point of signature.<\/p>\n This is the single biggest misconception buyers have about car purchases.<\/p>\n Once you have signed in person, the contract binds you to the deal as written.<\/p>\n There may be instances when dealers agree to let customers cancel as a goodwill gesture before delivery. However, in most cases, they have no legal obligation to do so.<\/p>\n However, if you cancel, you could lose your deposit or be charged for any loss the dealer goes through.<\/p>\n The one thing that can still be withdrawn separately is a linked credit agreement; more on that below.<\/p>\n The Consumer Contracts Regulations 2013<\/a> protect consumers who generally buy a car without seeing it in person. So, if you bought it online, through mail order, or by phone, chances are, you are protected.<\/p>\n These rules come from EU-derived “distance selling” protections<\/a> and allow consumers to cancel the contract within 14 days of delivery and get a complete refund.<\/p>\n Get in touch with Citizens Advice to know more about your rights, as it’s a reliable and free resource if a dispute arises.<\/p>\n Because the rules vary so much by scenario, here is a quick-reference summary:<\/p>\nThe 14-Day Withdrawal Right<\/h3>\n
How to Cancel Your Finance Agreement<\/h3>\n
Does Cancelling Finance Cancel the Car Purchase?<\/h3>\n
What If the Finance Company Refuses?<\/h3>\n
Does a Cooling-Off Period Apply When You Buy a Car In Person?<\/h2>\n
The 14-Day Cooling-Off Period for Online and Distance Car Purchases<\/h2>\n
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Cooling-Off Period Summary Table<\/h2>\n