Can I cancel my car lease after signing it?

Q: How long after signing a car can you back out?

Typically, you cannot back out of a car lease after signing it. There is no standard period for cancellation under federal law. If you believe there were violations or misleading practices, you might have legal options under the Consumer Leasing Act. It's best to seek advice from a qualified attorney to understand your rights.

Full question:

I signed a lease 48 hr agos but I don't like the car. I traded in a car and they have not sent the money the owe me back. I went to cancel the lease 12 hours after signed but they did not allow me to do it. Instead they made me sign a new contract and additional forms like arbitrary form and other saying that I spoke English. I did not have to sign this the first time. Can I still get out of this lease and have my car back with no penalty to my credit score?

Category: Contracts
Subcategory: Lease Agreements
Date: 04/07/2025
State: Illinois

Answer:

There is a common misconception that buyers can cancel a new car purchase within three days. However, federal law does not provide a general right to cancel a car lease. The Federal Trade Commission's Cooling Off Rule only applies to specific types of sales, such as door-to-door sales or contracts made outside the seller's normal place of business, and does not cover auto leases.

The Consumer Leasing Act (CLA) may offer some options if you believe the leasing company did not provide the required disclosures when you signed the lease. If there were violations, you might be entitled to actual damages, statutory damages, and attorney's fees. The CLA also limits your liability for early termination of the lease and requires that any penalties for early termination be reasonable.

Keep in mind that the CLA does not apply to leases shorter than four months or those exceeding a total obligation of $25,000. If your lease is primarily for personal use, it may fall under the CLA's protections.

If you are considering canceling the lease, be aware that if the lessor reports this to a credit agency, it could affect your credit score. You may want to consult with a local attorney experienced in consumer law to discuss your specific situation and options.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What happens if I change my mind after signing a car lease?

If you change your mind after signing a car lease, you typically cannot cancel it without facing potential penalties. The law does not provide a general right to cancel a car lease. However, if the leasing company failed to provide required disclosures, you might have some options under the Consumer Leasing Act (CLA). It's advisable to consult a local attorney to explore your specific situation.

Can you cancel a car lease right after signing?

Generally, you cannot cancel a car lease immediately after signing. There is no federal law that allows for a cooling-off period for car leases. If you believe there were issues with the lease agreement, such as lack of proper disclosures, you may have some recourse under the Consumer Leasing Act. Consulting with an attorney could provide clarity on your options.

Can I change my mind after signing a car lease?

Once you have signed a car lease, changing your mind does not allow for an automatic cancellation. There is no federal right to cancel a lease simply because you have second thoughts. If you feel misled or if there were violations in the lease process, you may have legal avenues to explore under the Consumer Leasing Act. Legal advice can help clarify your options.

How long after signing a car can you back out?

Can I back out of a car lease after signing?

Backing out of a car lease after signing is generally not allowed without facing potential penalties. Federal law does not provide a right to cancel a lease. If there are issues with the lease agreement, such as improper disclosures, you may have some recourse under the Consumer Leasing Act. Consulting an attorney can help you navigate your situation.

How many days do you have to return a lease after signing?

There is no specific number of days to return a car lease after signing, as federal law does not provide a cooling-off period for leases. If you are unhappy with the lease, your options may depend on the terms of the lease and any potential violations of the Consumer Leasing Act. It's advisable to consult with a legal professional for guidance.