The maximum purchase price for the contract cancellation option is based on the cash price of the vehicle.
A dealer may offer the contract cancellation option at no charge to the buyer. If the dealer does charge for the option, the provisions are:
- $75 for a vehicle with a cash price of $5,000 or less.
- $150 for a vehicle with a cash price of $5,000 but less than $10,000.
- $250 for a vehicle with a cash price of $10,000 but less than $30,000.
- 1% of purchase price for $30,000 but not more than $40,000
- For the new “Contract Cancellation Fee Schedule” sign go to: https://www.gotplates.com/pdfs/ab68optionpricesapril2006.pdf
A dealer must cancel a conditional sales contract if the buyer decides to obtain and exercise the contract cancellation option. The dealer shall, upon return of the vehicle and following a written return inspection, provide the buyer with a full refund. The dealer shall make the refund within two days of the date of cancellation, including sales tax and any registration fees, but excluding:
- The cost of the contract cancellation option
- A restocking fee: The restocking fee is limited to:
- $175 with a cash price of $500 or less
- $350 with a cash price of less than $10,000.
- $500 with a cash price of $10,000 or more.
However, the cost of the contract cancellation option fee must be subtracted from the restocking fee.
A definition of “full refund” for the above purchases includes the return of any trade-in vehicle or, if it has been sold, either the fair market value of the traded in vehicle or its value stated in the contract, whichever is greater.
