Retail Installment Sale Contract:
If you enter into a retail installment sale contract, where you purchase a car and pay for it in installments, you have the right to cancel the contract within two days of signing it. This is the "two-day right of rescission." To cancel the contract, you must send written notice to the dealer before midnight of the second business day after you sign the contract.
Motor Vehicle Purchase Contract:
If you purchase a vehicle through a motor vehicle purchase contract, not an installment sale contract, the cancellation rights are different. In this case, you can cancel the contract within three business days of signing it. To cancel the contract, you must send written notice of cancellation to the dealer by the close of business on the third business day after the contract signing.
Exceptions and Special Circumstances:
There may be exceptions to these general rules. For example, the cancellation right may not apply if the vehicle is sold "as is" or if it is a commercial vehicle. Additionally, there are some circumstances where you may be able to cancel the contract even after the cancellation period, such as if you were misled or provided false information by the dealer.
Refund and Fees:
If you cancel a contract within the specified period, the dealer must promptly refund any payments you made, including any down payment, and cancel or return any related documents, such as the vehicle registration and title. However, the dealer may charge you a cancellation fee, which is typically limited to a reasonable amount to compensate for their actual expenses.
It's important to carefully review the terms of your automobile purchase contract before signing. If you have any questions or concerns about your rights and options, it's recommended to consult with an attorney or review the specific regulations and guidance from the Washington State Department of Licensing.