Protecting the Rights of Consumers
For Over 25 Years
Edelman Combs Latturner & Goodwin LLC
Question: How do I rescind a car purchase? I bought the car on Saturday and now I realize I cannot afford it.
Answer: Illinois law does not provide for any period for rescinding a car purchase, as long as you receive a retail installment contract and, if it applies, disclosure of the statutory warranty (815 ILCS 505/2L).
The time to ascertain whether you can afford the car is before you sign, not afterward.
Occasionally a dealer will agree that you can reconsider and cancel a transaction within a certain period, or so you can take the car to a mechanic for inspection. If that is the case, make sure that promise is in a signed writing.
More frequently, a dealer will condition the sale on its being able to sell the contract to a finance company within some period. If the dealer is unable to do so, there is no transaction, with a possible exception if the dealer is willing to honor the finance terms itself. If the deal cannot be financed on the terms specified, you have the right to return the car and get all money / trade in vehicles back, without deduction. 815 ILCS 505/2C. You are not required to agree to any terms that are different from those originally agreed to, make a larger down payment, obtain a cosigner, etc. In that situation, we advise that you do not agree to any change of terms, because you have no idea if the change of terms is really required or if the dealer is just trying to get you to pay more money.