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トップページ > Consumer Affairs Consulting Service > Consumer Affairs Consulting Service FAQ > I changed my mind after deciding to buy a new car. Does the cooling-off system apply to this purchase?

Updated:March 4, 2019

I changed my mind after deciding to buy a new car. Does the cooling-off system apply to this purchase?

Consultation

I visited a car dealership and found a new car I really liked. I signed and placed my seal on the order form. I decided to pay for the car using a loan, but I haven't signed the loan contract yet. After thinking it over a lot, I realized that making the payments would not be easy, so I called the dealer the following day to cancel the order. Although the dealership informed me that I would have to pay a penalty, isn't there a cooling-off period? (Male, 20s)

The cooling-off system does not apply to car purchases. However, since you chose to pay by loan, and the loan contract has not been submitted yet, it looks as though a purchase agreement (contract) has not been established.

Advice

 The cooling-off system does not apply to vehicle purchase agreements.
The point at which a purchase contract is established differs depending on how the vehicle is purchased (cash purchase or financed by loan). In the case of cash purchase, according to standard policies adopted by automobile industry groups, the point at which a purchase contract is established is (1) the date the car is registered or (2) the date a manufacturer/dealer starts repairs, modification, or customization based on the customer's order, whichever comes first. In the case of a purchase financed by loan, it is either the date on which the application is submitted to the financing company or the date the financing company approves the application. Unless a loan contract is established, the purchase agreement will not established.
In this specific case, since the loan contract has not yet been submitted, it seems that a contract has not been established, and payment of a cancellation fee should not be required.

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