PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can a car loan be rescinded if I already signed the contract and drove the vehicle off the lot?
I purchased a car from a dealer. At closing, they said my financing looked fine. I signed the papers and drove the car home. A week later, the dealership called and said that the lender had kicked back our loan. Can they take back my new car?
Sarah Gray · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Yes: A dealership can take a car back after you’ve signed the contract, even after you’ve taken possession of the vehicle. Most states allow 10 days for a dealership to cancel a purchase order.
In most cases, a dealership won’t retract a sale unless there’s an issue with your financing. However, you should have a few options to avoid having your car taken back:
- Option 1: Increase your down payment.
- Option 2: Find a different lender.
- Option 3: Return to the dealer to figure out an alternative solution.
Another common reason a dealer (or lender) will take your car back is if you fail to make payments on your
car loan
.Worst case scenario: The terms of a loan may change or be canceled if a lender goes into insolvency or is taken over by another bank. You may need to refinance your car if the new loan terms no longer align with your financing needs.
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
