We’ve all made stupid purchases. It just happens. We are now in the store and something catches our attention.
So we buy. But then what? We return home and realize that it was a waste of money. And then we can do one of two things:
- Try to return.
- Leave him thinking we’ll decide later that we really want him.
I can’t speak for you, but I usually do the latter. And much of my inaction stems from the assumption that as a consumer I have little legal protection.
But I recently changed my mind after learning more about the buyer’s remorse law, which entitles you to remorse if you act fast enough and know which purchases the laws apply to.
Thinking Rule
In certain situations, the Federal Trade Commission’s deliberation rule can protect you from buyer remorse and allow you to withdraw from a sale or purchase agreement. But it’s important to know the rule before you buy anything, assuming the government has your back.
The rule is entirely regulated by the FTC, so they decide what types of purchases are covered by the rule, what you can do in case you have a buyer’s remorse, and where it’s covered.
Place of purchase
If you make a purchase at a merchant’s permanent or main office, your purchase will not be subject to the reflection rule. The law was originally written to cover purchases made through door-to-door sales. You probably think that no one buys stuff from salespeople anymore (and do they even exist?), but the good news is that you’re protected. simply purchases you make at home.
If you are not purchasing from a retailer’s main office, your purchase may be covered by insurance. So it could mean buying at a trade show, your job, a conference, your dorm, a street fair… you get the idea.
Once you have determined whether the product or service you have purchased meets the requirements, you three days from the moment of purchase, change your mind and back out of the sale (and get your money back). You will have to formally cancel the sale in writing, and technically it must be stamped before midnight on the third day. If you are not handling the postage yourself, you will be assigned an earlier time, such as when your local post office closes.
Be aware that there are quite a few restrictions that are not covered by the points of the plan. Some of these include purchases made online or major purchases such as a car. (See the section on cars below). Be sure to review the full list of criteria covered by the reflection rule, as well as the refund process.
State considerations
Some states have additional laws that will apply to you in the event of buyer remorse, and may even expand the deliberation rule. One example is the Florida contractual buyer’s remorse rule regarding the sale of future services.
Let’s say you live in Florida and sign a contract with a local landscaper to uproot weeds and plant flowers every month. There is a state law that says you can use the deliberation rule in this situation, giving you three days to cancel your contract with the landscaper.
Another example is the state of Massachusetts, where you are legally allowed to cancel a gym membership you signed within three days, provided you send notice of cancellation in writing.
These laws are the exception, not the rule, so be sure to carefully research your state’s specific laws and talk to a lawyer if you’re still unsure.
Automotive Buyer’s Remorse Laws
There are many reasons why you would like to return a car, such as its price, discomfort with the dealership’s sales tactics, or certain features or limitations that you were not aware of prior to purchase. Unfortunately, the deliberation rule does not apply to cars, as I mentioned above.
When you sign a car sales contract, the legal advantage usually goes to the dealer. When buying a car, there are also many parts and people involved, which only complicates returns.
However, you can still seek help if you experience buyer remorse with a newly purchased vehicle. But it’s best to be aware of the following exit provisions before taking the wheels out of the parking lot.
Return without risk
Some dealers are so confident in their vehicles and sellers that they offer risk-free returns. Others will offer it if they are desperate enough for your business. I would say the latter is more common.
To receive the risk-free return included in your purchase agreement, you must be confident and prepared to withdraw from the sale at any time. Just like when discussing the price of a car, most dealers won’t want to give you a “free trial”.
My advice – first agree on the cost of the car. Once this is agreed, tell the seller that you are still unsure and need more time to think (even if you are sure you want a car). Be prepared to leave if they tell you not to rush. Although they probably won’t.
Tell the salesperson that you need a certain amount of confidence in order to buy a car because you’re not entirely sure you want that particular car (again, even if you’re completely sure). If you put enough pressure on them, they may “talk to their manager” and give you something like a three-day risk-free refund.
In case you can get it, good for you. It’s not common. They will likely put in limits, such as the mileage you can drive in that time period. And be aware that if you decide to return the car, you will most likely be charged a restocking fee.
lemon laws
A more realistic way to return a car is if it is considered a “lemon”, i.e. faulty and therefore requires a lot of money to pay for repairs. Lemon laws in most states only apply to new car purchases, but at least eight states also have lemon laws for used cars:
- Arizona
- Connecticut
- Maine
- Massachusetts
- Minnesota
- New Mexico
- New York
- Rhode Island
These states provide a sort of warranty that will protect you in the event that your vehicle is found to be defective. If you end up buying a used car with a lot of problems, the dealer will be given the opportunity to fix the car before either replacing it or getting your money back.
While other states may not have a true lemon law, many do have certain buyer rights that require either minimum standards to sell a used car or that the car come with some sort of warranty. Visit this website to learn about lemon laws or related car buying protections your state offers.
Unfortunately, there are some states that have little to no legal protection against being with a junker. But fear not, there are other ways to protect yourself.
Uniform Commercial Code (UCC)
Under the Uniform Commercial Code, any used car you purchase is covered by an “implied warranty” that states the car is fit to be transported. The problem is that many dealers sell the car “as is”, which allows them to not honor this type of implied warranty. Some states/counties actually prohibit dealers from selling cars “as is”, in which case the UCC can be as effective as a lemon law, if not more so.
used car rule
The FTC states that anyone who sells more than five used vehicles in a 12-month period must comply with the Used Vehicle Rules. This rule requires the seller to comply with certain legal requirements, including but not limited to:
- Posting a buyer’s manual stating whether the vehicle is being sold as is or is under warranty.
- Identification of serious problems with the car at the time of purchase
- Keeping all promises in writing
You can see the full breakdown of this rule on the FTC website.
Magnuson-Moss law
The Magnuson-Moss Warranty Act prohibits dealers and manufacturers from claiming that your current warranty is void. It also makes it illegal to deny you coverage under your warranty because someone other than the dealer has serviced your vehicle or because you have used remanufactured parts (unless the maintenance or remanufactured parts resulted in a defect). your vehicle).
Return Protection
While using a credit card to buy a car is not recommended, credit cards offer a number of benefits when making smaller purchases. And one of those benefits is return protection.
Essentially, return protection is a feature that allows you to return a qualifying item even if its seller won’t accept it back. In fact, it increases the return period.
This is perfect for buyer remorse because some credit card networks don’t even mind if you open or use the product as long as you keep the packaging and don’t intentionally destroy it.
Here is a brief overview of the return protection policies of the four major US credit card networks.
American Express
Amex Return Protection gives you 90 days to return an item after the date of purchase for items under $300 (up to $1,000 per year).
discover
Discover is the only major credit card network in the US that does not offer any form of refund protection on any of its cards. That’s quite a bummer, especially considering that Discover’s previous return protection terms were the most generous of any credit card network.
Mastercard
Mastercard Return Protection gives you 60 days to return an item after the date of purchase for items under $250 (maximum of four claims allowed in a 12-month period).
Visa
Not all Visa purchases are eligible for a refund. But purchases with a Visa Signature® card are eligible for 90-day return protection up to $250 per item.
Frequently asked Questions
What is buyer remorse?
Buyer remorse is a feeling of regret about a purchase. This is usually due to the feeling that you paid too much for the item, that an alternative item might be more suitable for your needs, or that the item does not work or does not work as you expected.
What is the duration of the buyer’s remorse law?
Under the FTC’s deliberation rule, you have until midnight on the third business day after the date of the applicable transaction to file a cancellation notice. Other state laws may provide for longer periods of time for certain purchases.
Is there a right to cancel a car purchase within 3 days?
Unfortunately, there is no three-day right to cancel a car purchase, as the FTC’s deliberation rule does not apply to most car sales. However, depending on the reason you canceled your car purchase, you may be subject to other legal remedies, such as your state’s lemon laws.
Summary
Buyer regret is real. We all face this. We all make impulse purchases. The main thing is to know what your rights are and what you can return (and when). From the FTC to state laws to your own credit card company, you may have more compunctions than you think.