Finance office: California
General information, not legal advice. Laws change. Facts last checked on 13 November 2026 against the sources linked.
We name no lender and sell nothing.
At a glance
| Topic | Can I cancel? | Window | Refund |
|---|---|---|---|
| Cancelling the car purchase | Used cars $50,000 or less only | 3 calendar days, 400 miles | Full, minus $200 to $600 and mileage fee |
| Vehicle service contract | Yes, by written notice | 60 days; 30 for some used cars | Full if no claim; then unused part |
| GAP waiver | Yes, any time, no penalty | 30 days for full refund | Full, then the unused part |
| Credit life and disability insurance | Yes, any time, by notice | 30 days for full refund | Full in first 30 days; later by formula |
Cancelling the car purchase
California gives no right to return a new car.
A used car bought from a dealer for $50,000 or less can be returned in person, in the same condition, within 3 calendar days after the day you sign, if driven 400 miles or less; the dealer may charge $200 to $600, plus up to $150 for miles over 250.
Our summary of the law quoted below. Your contract says what applies to you.
“A dealer shall not sell or lease a used vehicle at retail at a price equal to or less than fifty thousand dollars ($50,000) without providing the buyer or lessee with a three-day right to cancel”
California Civil Code 1784.43(a)(1)(A); exclusions in 1784.43(g)-(i) and 1784.31(k)(2)
More from the law (7)
“CALIFORNIA DOES NOT HAVE A COOLING-OFF PERIOD FOR NEW VEHICLES. HOWEVER, IF YOU PURCHASED OR LEASED A USED VEHICLE FOR $50,000 OR LESS, YOU HAVE 3 DAYS TO CANCEL THIS CONTRACT FOR ANY REASON.”
California Civil Code 1784.43(e)
“this period consists of the three calendar day period commencing the calendar day after the purchase or lease is executed.”
California Civil Code 1784.31(i)(1)-(3); 1784.43(b)(3), (b)(6)
“the right to cancel applies only if all of the following are personally delivered to the selling or leasing dealer during business hours by the buyer or lessee at the time the right to cancel is exercised”
California Civil Code 1784.43(b)(6)
“The right to cancel does not apply if the used vehicle has been driven more than 400 miles between the execution of the sale or lease agreement and the date on which the buyer or lessee attempts to exercise the right.”
California Civil Code 1784.43(a)(1)(B)
“One and one-half percent of the sale price of the vehicle, but not less than two hundred dollars ($200) and not more than six hundred dollars ($600).”
California Civil Code 1784.31(g)(1)(A) and 1784.43(b)(4)
“If the vehicle has been driven over 250 miles, the dealer may also charge ... an additional one dollar ($1) for each mile over 250 miles, but this amount shall not exceed one hundred fifty dollars ($150).”
California Civil Code 1784.31(g)(2)
“No later than 48 hours after the buyer or lessee exercises the right to cancel pursuant to this section, the dealer shall cancel the contract and provide the buyer or lessee with a full refund, minus any deduction allowed by this section.”
Vehicle service contract
Cancel in writing within 60 days of receiving the contract, with no claim made, and the full price is refunded (30 days for a used car with no maker warranty; your contract may allow longer).
Otherwise the refund is for the unused part, less a fee of up to $25 if the window has passed.
Our summary of the law quoted below. Your contract says what applies to you.
Used car with no maker warranty
Fee: 10 percent or $25, whichever is less
Optional? When a dealer writes about an add-on while you negotiate on a specific car, it must say in writing, at least once, that you can buy the car without it (not for used cars sold at auction).
“the full amount paid shall be refunded by the seller to the purchaser if the purchaser provides a written notice of cancellation to the person specified in the contract, and if no claims have been made against the contract.”
More from the law (6)
“Unless the contract provides for a longer period, within the first 60 days after receipt of the contract, or with respect to a contract covering a used motor vehicle without manufacturer warranties ... within the first 30 days”
California Civil Code 1794.41(a)(4)(A)
“If a claim has been made against the contract either within the first 60 days after receipt of the contract … a pro rata refund … shall be made by the seller to the purchaser”
California Civil Code 1794.41(a)(4)(A)
“the seller may assess a cancellation or administrative fee, not to exceed 10 percent of the price of the service contract or twenty-five dollars ($25), whichever is less.”
California Civil Code 1794.41(a)(4)(B)
“When making any written representation during the negotiation to purchase or lease a specific vehicle about an add-on product or service, the dealer shall disclose at least once that the add-on is not required”
California Civil Code 1784.41(b), (g)
“the consumer can purchase or lease the vehicle without the add-on. This disclosure shall be in writing and shall be clear and conspicuous.”
California Civil Code 1784.41(b), (g)
“This section shall not apply to a used vehicle sold at an auction.”
GAP waiver
GAP bought with a loan signed at the dealer can be cancelled at any time without penalty: the refund is full within 30 days of purchase and covers the unused part after that.
No refund is required after a total loss or theft where GAP pays its benefit.
Our summary of the law quoted below. Your contract says what applies to you.
Optional? With a loan signed at the dealer, the loan and its terms may not depend on you buying GAP, and the GAP form must say it is optional.
“A guaranteed asset protection waiver may be canceled by the buyer at any time without penalty.”
More from the law (5)
“If the termination occurs within 30 days after the date the buyer purchased the guaranteed asset protection waiver, the buyer is entitled to a full refund of the guaranteed asset protection waiver charges plus all finance charges ...”
California Civil Code 2982.12(b)(2)(A), (B)(i)-(iii)
“If the termination occurs later than 30 days after the date the buyer purchased the guaranteed asset protection waiver, the buyer is entitled to a refund of the unearned ... charges, which shall be calculated on a pro rata basis.”
California Civil Code 2982.12(b)(2)(A), (B)(i)-(iii)
“No refund is required upon termination if there has been a total loss or unrecovered theft of the motor vehicle ... and the buyer has or will receive the benefit of the guaranteed asset protection waiver.”
California Civil Code 2982.12(b)(2)(C)
“Neither the extension of credit, the term of credit, nor the terms of a conditional sale contract may be conditioned upon the purchase of a guaranteed asset protection waiver.”
California Civil Code 2982.12(a)(3)
“YOU CANNOT BE REQUIRED TO BUY A GAP WAIVER OR ANY OTHER OPTIONAL ADD-ON PRODUCTS OR SERVICES. IT IS OPTIONAL.”
Credit life and credit disability insurance
You can cancel this insurance within 30 days of receiving the policy or notice for a full refund of the premium paid, or a credit if it was financed.
After that, you can still end it at any time, for any reason, by giving notice to the lender.
Our summary of the law quoted below. Your contract says what applies to you.
Optional? The CFPB says you generally cannot be required to buy credit insurance.
“shall allow an insured to rescind the insurance within 30 days of receipt of the policy or certificate or notice of proposed insurance ... and to receive a full refund, or credit if financed, of any premium that has been paid.”
More from the law (2)
“The debtor shall have the right to terminate credit life insurance or credit disability insurance at any time for any reason upon notice to the creditor.”
California Insurance Code 779.31
“Generally you cannot be required to buy an extended warranty, GAP insurance, or credit insurance.”
- Who to ask: California Department of Insurance 1-800-927-4357
Not covered yet
These pages do not yet cover paint and fabric protection, tire and wheel protection, key replacement, theft etching or prepaid maintenance plans, and state no rule for them. For questions, read the contract or ask the offices below.
- Paint and fabric protection
- Tire and wheel protection
- Key replacement
- Theft etching
- Prepaid maintenance plans