can I cancel a signed contract for a used vehicle within 24hrs

[unsatisfied]

I signed the contract for a certified preowned vehicle on a Friday evening. I received the keys but did not take the vehicle out of the lot, which I planned to come back the next day. That night my spouse reveals he may be laid off from work which will prevent us from having an additional financial obligation. Saturday morning I called the dealer to rescind my contract. They stated I could not cancel the contract. Then they said if they void the contract, I would be responsible for the tax, title and registration fees, which can total $2000-$4000. I didn't take the vehicle out of the lot. I said I could not afford to pay them anything. I didn't make a down payment. I didn't have a trade in. I did finance the total amount through the dealership, Bank of America approved the loan. I spoke to the general manager and he repeated the same statements. I told him I will not afford the vehicle, left the keys and walked out.

Do I have a chance to cancel the contract?
What do I do next? Do I need a lawyer?

 

[mightymoose]

If there is anything in your favor it is that you never took possession of the vehicle.
You need to review the contract you signed to see what it says about cancellation. You should also speak with a local attorney for guidance as you likely have some legal nastiness in your near future.

 

[unsatisfied]

Can I cancel a signed contract

Once I signed the contract to purchase a certified owned vehicle, but did not take possession of it, can I rescind the contract within 24hrs?
-I did not take the vehicle out of the lot.
-no down payment, no trade in.
-financed w/ dealership.
-Dealership stated I have to pay $2000-$4000 for tax, title & registration.
Am I legally responsible to pay for something I did not physically take possession?

 

[Proserpina]

You may be on the hook here. The '3 day cancellation' policy does not apply to cars and Illinois has no law allowing the return or cancellation because you changed your mind.

http://www.ag.state.il.us/consumers/auto.html

By the same token, you can always try to negotiate with the dealer.

 

[Betty3]

Unless there is something in the contract regarding being able to rescind the contract within a certain period of time (there doesn't have to be & doubtful there is), you are out of luck. As Proserpina noted, you can try to negotiate with the dealer. Good luck.

 

[unsatisfied]

Thanks for the replying to my post. I'll try to find a lawyer who can help.

 

[fredrikklaw]

U.C.C. to the rescue, perhaps?

UNSATISFIED…

Whether by chance or by design, the fact that the subject matter of the contract (the car) is still sitting on seller's lot may come to your aid in avoiding the contract on a purely knit-picking technicality, which I must emphasize will have to be argued succinctly in order to succeed.

That a contract was formed, there is no question and I agree 100% with Proserpina's and Betty3's take on this; even more so considering that the reason behind your decision to avoid the contract is buyer's remorse than a cognizable rule of law. But the colloquial, laymen concepts of cold-feet, fair dealing, and sense of fair play in contracts apart, and if argued properly and succinctly, you can invoke the authority of Sections §2-401 - §2-403 and §2-501 - §2-515 of Article 2 of the Uniform Commercial Code. Otherwise known as U.C.C., these sections deal mainly with Title, Risk, and Insurable Interest with title holding as your central argument.

U.C.C. controls and regulates contracts for sales of goods the essence of which is the transfer of ownership (title) of the goods from the seller to the buyer, which in turn completes the contract. That means that even though a contract is formed, it is not complete until and only until the title of the good has been transferred from seller to buyer.

In Article 2, U.C.C. also took pains to streamline the process and eliminate ambiguities of yesteryears by defining for the parties to a sale of goods contract exactly when title passes from seller to buyer (and in the process determine the rights and duties of the parties between the time a contract is formed and the time the goods are actually received by the buyer) in U.C.C. 2-401(2) which says: "…unless an agreement is explicitly made, title passes to the buyer at the time and the place the seller performs the physical delivery of the goods…!"

I direct your attention specifically to the provisions contained in §2-401 (4) of Article 2 of U.C.C. which says in whole:

A rejection or other refusal by the buyer to receive or retain the goods, whether or not justified, or a justified revocation of acceptance reverts title to the goods in the seller. Such reversing occurs by operation of law and is not a "sale".​

Hope you can make sense and a go of it!

fredrikklaw