Used Car Return Laws in Washington Explained
A 2010 amendment to Washington’s Lemon Law, RCW 19.118, provided greater clarity for used car and mechanical breakdown insurance that are sold with used vehicles. The prior version of the statute had no specific provisions addressing return rights and it provided no time frame within which many of a buyer’s rights had to be done.
Under the statute, an automotive dealer must provide a buyer of a used vehicle a 15-day opportunity to return the used vehicle if the used vehicle is not in satisfactory condition and meets any of several specific criteria within that 15-day period. RCW 19.118.025; RCW 46.70A.080(1)(b). In addition, if the vehicle is specifically mechanical or safety in nature, a potential buyer may return the vehicle within 60 days for defects that substantially impair the vehicle’s use, marketability, or safety. RCW 19.118.025(a); RCW 46.70A.080(1)(b).
When a buyer returns a used vehicle that qualifies under either of these two main statute, the seller is required to buy back the vehicle at the contractual price. RCW 19.118.025. In addition, the seller must pay the buyer "an administrative fee of five percent of the contract price, but not to exceed two hundred dollars, plus any sales or use taxes paid by the buyer and all fees paid by the buyer for services performed for the transaction…" and "…any fees and charges for delivery of the motor vehicle by the dealer to the consumer . " RCW 19.118.025(2). Further, the dealer must also "pay to the buyer all transfer or non-governmental charges incurred by the buyer that were required by the dealer." RCW 19.118.025(2). Excess wear and tear are excluded from this definition.
Notably, the statute provides authority for the Washington State Department of Licensing to enact administrative rules for the enforcement of this statute. RCW 19.118.080(6). Pursuant to this authority, the Department adopted WAC 308-100-025, which further explains the requirements imposed on sellers of used vehicles. It provides a form to be used throughout the state of Washington, something that is beneficial for consumers and dealers, as they are both aware of the rules.
In Washington State, a buyer is entitled to one return for a defect that renders the used vehicle unmerchantable, which is often a considerable amount of money. The statute acknowledges that while the buyer might have settled a past claim for a vehicle return, something might come up with a vehicle months later. The statute does not allow for multiple returns to happen, as the vehicle can only be returned once. Properly enforcing the statute is the key for buyers, and often times, bringing a buyer’s claims against a seller ensures the remedy of restitution is available to the consumer.
Buyer’s Return Rights for Used Cars
Washington State law does not give the buyer the right to return a vehicle just because the buyer changed his or her mind about the purchase or the buyer simply does not like the vehicle. Like most other states, Washington law imposes upon the buyer the duty to fully inspect the vehicle and to discover any defect or nonconformity to any express warranty before the buyer elects to complete the purchase. However, Washington law does impose restrictions upon the seller’s ability to retain the vehicle or charge a fee for early termination of the purchase.
While they are not legally enforceable, many dealers maintain a money-back guarantee or generally allow a buyer to trade in the vehicle for another vehicle within a certain time frame. These agreements are typically limited in scope, and may be forfeited for certain reasons such as cancellation of insurance, driving over a set mileage limit, abuse, fatigue, etc. If a dealer makes such a promise, it should be obtained in writing, and not just as a provision of a bill of sale.
Exceptions to the Right to Return a Used Car
Typically, used car returns are not allowed because of one of the following exceptions:
Waiver of Revocation:
It is common for dealerships to require customers to sign a form that waives the right to return the vehicle within 48 hours. If you have waived your revocation rights, then you must be extremely careful about your purchase and need to take an extra long time inspecting the car and ensuring that everything is in good working order.
Used car returns may be allowed after 48 hours have expired if:
Diminished Value Holds (Insurance Companies):
Sometimes when a used car is involved in an accident, the owner of the car will not have their insurance company pay to have the vehicle repaired. They may opt to pay the diminished value of the vehicle instead. If the diminished value is paid out in this manner, then the vehicle cannot be returned according to Washington state law.
Aftermarket Warranty:
If you pay for a vehicle with an aftermarket warranty – you may not be able to return the used car within the return policy. For example, on a vehicle that is financed, if you buy an aftermarket car warranty for the full price at the time of financing, you may also owe the dealer for the amount of the warranty as part of the purchase price. If you return the vehicle within 48 hours – the dealer may subtract the cost of the warranty from your refund.
Damages after Purchase:
The used car return policy generally does not apply if the customer damages the vehicle after delivery and now wants a refund.
An Introduction to the Lemon Law
Washington’s Lemon Law does not only apply to new vehicles, but also to used motor vehicles that are still protected under the Lemon Law. However, there are additional requirements for filing and completing a claim. To be eligible for Washington State’s Lemon Law, your vehicle must be purchased from a manufacturer, dealer, or retailer who has already attempted to repair the same defect three times or more. If there are any defects and a complaint is filed, the original automobile warranty will be prestigious and should outline what will be covered. In order to qualify for the lemon law buy back of your used vehicle, the car needs to have been purchased or leased within 18,000 miles or one year after the day of pickup. This is to be inclusive of the date which you purchased the used automobile and the date you filed your Lemon Law complaint. The notification of claim must be made in writing no later than 30 months from the date of delivery of the used vehicle which affirms the defect is still being repeated despite previous attempts to correct it. The first thing to do, if there is a problem, is to contact the manufacturer, retailer, or dealer to make a complaint either verbally or in writing. It is in the manufacturer’s discretion to accept or deny the defect. If however, the manufacturer denies it or ignores your complaint and the issue still remains, then you should move forward with the Lemon Law Buy Back arbitration process. The Lemon Law Buy Back Process resembles the same process as a new car Lemon Law claim. A complaint must be filed with the private attorney general’s office. You can do this online at www.atg.wa.gov or alternatively, file via mail. Please be sure to include copies of all documentation including the completed consumer complaint form that you received from the office. When filing via mail, include pre-paid postage to return the documents once completed. If the paperwork is incomplete, the private attorney general may want additional documentation. Then the private attorney general will assign your complaint to an arbitrator for review. You will be scheduled for a hearing date within the next 60 days to present evidence for your claim.
What to Do if a Return is Necessary
If you do find yourself in a position where returning a used car is necessary, it will be important to take the following steps:
- Contact the dealership or seller and let them know that you will be returning the car. Do not wait too long after purchase. If you wait longer than a few days, the dealership may not consider the return.
- Give the dealer or seller a reason for the return. You can simply tell them you will not need the car, but they may ask why you no longer want the vehicle. You do not need to give them much detail. Again, if the dealer or seller has any questions regarding the return, they may ask you to fill out a Return Request Form before completing the transaction.
- Contact your bank or credit company. Tell them you will be returning the car and no longer need the financing at this time.
- Keep all documentation related to the purchase, financing, and return of the vehicle in one organized place . This should include your purchase agreement, financing contract, any e-mail correspondence with the dealer or seller, and any paperwork you filled out regarding the return.
- Inquire about any other paperwork you might need to complete in order to finalize the return. You may need to fill out an odometer disclosure statement as well as provide information regarding how many miles you drove the vehicle since purchase.
- Pay any fees associated with the return.
- Make arrangements to return the vehicle to the dealer or seller.
- Find out if you will receive a refund of any kind and when to expect it. You will need to return the car in the same condition you received it. If the vehicle is damaged or dirty, you may face additional fees or have the return denied altogether.
You should not stand for it if the dealer or seller does not let you return a used car. While they are not compelled to accept the return, they must comply with the warranty, guaranteeing that your vehicle will remain free from defects and be safe and functional for the duration of your warranty period.
Finding Legal Help and Resources
When faced with challenges relating to the purchase of a used vehicle, Washington residents can lean on various legal assistance and consumer protection resources.
The Washington State Attorney General’s Office provides resources for consumers who are feeling like they are getting ripped off or deceived by unscrupulous car dealers. Their Enforcement Division focuses on "serious, long-term, or large-scale unfair or deceptive business practices" in conjunction with law enforcement agencies throughout the state, targeting the worst offenders in the used car market.
The Better Business Bureau of Puget Sound is well-known for being an advocate for consumers in many industries, including the auto industry. The BBB serves as a mediator to resolve car-related disputes between consumers and unfair dealers, calling for accountability from dishonest dealerships and car salespeople.
Washington residents struggling with a problem after having purchased a used car can also turn to the Washington State Bar Association for help to find an attorney who can manage the situation. They note that consumers should first contact the dealership, testifying to the fact that Washington state laws generally favor the legal rights of the customer when it comes to purchases made in the used car market.
For those who feel they have landed an unethical dealer, the Washington State Department of Licensing offers an online portal where consumers can file a complaint against a used car dealership. At the same time, the Washington State Department of Financial Institutions maintains the Register of Licensed Motor Vehicle Dealers, allowing consumers to check if their designated dealer has been legally licensed to operate in the state.
Hints and Tips for Those Purchasing Used Cars
- Take an experienced mechanic along with you to the dealership to help you check the car for issues such as rust, oil leaks, rattling or clanking when driving over bumps, and other signs of a worn engine or transmission. If any issues cannot be addressed by the dealer, walk away from the deal even if you have to leave empty-handed. There are plenty of other cars and dealerships with which to work.
- Do not buy from a private seller without having the vehicle checked for hidden damage by a reputable third-party business. Hidden damage includes prior damage to the vehicle that some sellers will not disclose. Washington has a public vehicle database where you can run a VIN check to get a report on whether there have been three or more previous owners. If there have been three or more owners, this could indicate damage , as would any report that notes damage. Negative reports with only one or two owners are better.
- Try to get specifications on how to use the third-party software or other system. Online complaints show that many consumers have difficulty reapplying the VIN sticker on the rebuilt title or programing the software back into the vehicle. Some buyers may be able to pay a mechanic to help with this task, or the heavy lifting system has instructions on how to complete the work yourself.
- If you do not see the VIN sticker underneath the hood (the sticker will list the VIN number, manufacturer’s name and, sometimes, the model and color of your vehicle) or you have any suspicion that the VIN number on your vehicle does not match the official numbered plate, do not purchase the vehicle. Check to make sure the VIX sticker shows the original factory-made VIN number and that it matches the number on your numbered plate and in the database at the dealership’s Web site. If the numbers do not match, your vehicle likely has a rebuilt title.