Can I give my car back to the dealership?

If you're reading this, then chances are that the honeymoon is over and you're not exactly the happiest camper around. If for whatever reason, you feel that you need to get out of your vehicle, you'll be wondering whether or not it is possible to simply just return your car to the dealership.

Related: When and how to reject a car

Many situations can arise where one feels the need to return the car to the dealer, be it because of a faulty vehicle, a sudden change in your financial situation or even just buyers remorse where you feel you got the wrong car. It is a rather convoluted affair and the law clearly stipulates when you're able to do so. It's further compounded by the way in which you paid for the vehicle and whether you purchased new or used.

 

Faults

New cars

New cars may be covered by a warranty, but a warranty doesn't mean that you can just hand the car back if there's a fault. The warranty will see to it that the faulty item is replaced, restoring your vehicle to full working condition. Should the problem persist, only then will you have the ability to request a replacement vehicle. The warranty will cover manufacturer defects and faulty parts and does not cover wear and tear or damage caused by misuse. The fault has to be as a result of defective workmanship or an error in installation.

Should the vehicle have to be replaced in its entirety, the dealership is required to replace the vehicle with a similar model in a similar condition with similar mileage.

 

Used cars

The Consumer Protection Act (CPA) protects buyers of used car by granting them a 6-month period in which they are able to return a defective product and have the dealership repair, replace or refund the value of the vehicle in the need that a fault occurs that cannot be attributed to fair wear and tear or neglect. The caveat here is hidden in the fine print. If the contract that you signed has a clause stipulating that the vehicle has been sold 'as is' or 'vootstoots', you'll have a tough time convincing the dealer to assist you in any way as you knowingly accepted the vehicle as it was presented. It is on the onus of the consumer (you) to prove that the fault was preexisting and did not occur after the sale was concluded.

 

Other situations

If there's nothing particularly wrong with the vehicle, but you still need to get out of it, you may have a few solutions. This could be due to a sudden financial change or simply if you no longer want the car.

New cars

The warranty on your new car doesn't allow you to simply return it should you no longer want it. The warranty only serves to correct faults on the vehicle. What you are provided with is a 5-day cooling-off period but the dealer only has to honour that if you are able to prove that the vehicle was bought as a result of direct marketing, ie: you received an SMS, e-mail or similar addressed to you, encouraging you to buy that vehicle.

Outside of the 5-day cooling-off period, you are still able to 'return' the vehicle. As most new vehicles are financed through a bank or similar financial institution, you would be surrendering it back to the bank and not the dealership. The finance institution will then endeavour to sell the vehicle on auction for the highest price possible in order to recoup the amount owed by you. As new vehicles depreciate the moment you leave the dealership, this amount will in most instances not cover the full amount owed. As the vehicle awaits a sale, it continues to depreciate and this amount that is recovered is considerably less. All the while, you will still be liable for the monthly instalments. This avenue can see you still owing the bank a considerable amount, even though the vehicle has been returned and sold on auction.

 

Used cars

You've bought a used car from a dealership and now you want to hand it back. As with the new car, you're probably owing the bank the money through your finance agreement. The situation is similar where you won't surrender the vehicle to the dealership but rather the finance house. Once again, the vehicle will be placed on auction and the sale amount stemming from the auction is used to offset what you owe the bank. 

It's worth noting that surrendering your car back to the bank is deemed to be a repossession and will negatively affect your credit score and credit profile.