Returning A Used Car After The Purchase – Texas Lemon Law

Under the Texas lemon law and federal lemon law, there is a “3-day cooling off period” that applies to certain contracts. This also prevents the abuse of the “3-day cooling off period” rule based on the whims of the used car buyer.

In the State of Texas, you can return a car within a time period of 72 hours also termed the “3-day cooling off period” rule. This is based on the problems in the vehicle. Texas lemon law prohibits sales of vehicles that do not meet the standards of inspection set by the state.

Texas lemon law allows relief by the 3-day cooling off period rule in certain contracts as the following:

The 3-day cooling off period applies to contracts signed in the customer’s home

The 3-day cooling off period does NOT apply if the contract was signed at a company’s place of business

The 3-day cooling off period applies to contracts signed for consumer goods worth $25 or more

The 3-day cooling off period applies to contracts signed if the cancellation period is stated in the contract

To cancel a contract under the 3-day cooling off period, mail a written notice of cancellation by midnight of the third business day after the sale

The written notice does not have to be received by the seller within three business days, but must be postmarked within that time

The 3-day cooling off period rule does not apply if a customer chooses to call or fax the seller to notify him of the cancellation

The phone call or fax does not cancel the contract under the 3-day cooling off period rule

The 3-day cooling off period rule applies only if a written notice is sent

The customer does not have to give the company a reason for the cancellation

The seller must refund any deposit or down payment within the time stated by law

The Texas Attorney General’s office and the Federal Trade Commission cannot provide individual legal advice, but can only offer consumer publications with tips on contracts.