How to Cancel a Vehicle Purchase Agreement

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Although a binding agreement, the contract is subject to laws protecting the buyer from vehicle malfunctions. Lemon laws grant buyers the right to cancel purchase agreements for vehicles that fail to operate after a short period of time from the purchase. Lemon law varies from state to state. Some states legislate laws for new car purchase agreements, while others apply lemon law for used car purchases.

Step 1

Take the car to a licensed inspection station within seven days of registering for the 169 Point Vehicle inspection. Do not allow the dealer to complete the inspection.

Step 2

Obtain a written statement signed by an authorized agent stating reasons why the vehicle failed the inspection. The statement should note standards for areas in which the vehicle failed.

Step 3

Demonstrate that the estimated cost of repairs for safety or emissions related defects is greater than 10 percent of the vehicle's purchase price. This requires that the mechanic locate the problem and estimate the cost of repairs.

Step 4

Notify the seller of your intent to void the vehicle purchase agreement via certified mail with return receipt requested or by regular mail. Enclose copies of all documents and keep copies for your records.

Step 5

Negotiate with the seller. Be firm. The car was purchased in good faith, so feel comfortable enough to refuse unsatisfactory offers and request a full refund.


  • "The Lemon Law Bible;" Steve Lehto; 2000

About the Author

Maikeisha Cuyler has been writing since 2009. Her work appears on eHow, specializing in topics related to health and women's issues. Cuyler earned a Bachelor of Arts in creative writing from Florida State University.

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