When making big financial decisions, it’s easy to get caught up in the excitement and emotion of the purchase. But if you rush into buying something without doing your research or weighing the pros and cons, you might find yourself suffering from buyer’s remorse.
Buyer’s remorse can be described as a feeling of anger, disappointment, or even depression after making a big purchase that you regret. It’s common with major purchases, like real estate, boats, and vehicles, which often involve a long-term commitment.
Before you purchase a new car, it’s important to consider all your options, stick to your budget, and make the best decision to avoid buyer’s remorse.
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What Causes Buyer's Remorse
Most people have experienced buyer’s remorse at some point in their lives. While buyer’s remorse is unpleasant, it’s very common, according to Psychology Today. The severity of buyer’s remorse depends on several factors, including:
- How much time and money were invested in the decision.
- How involved the purchaser was in making the decision.
- Whether or not the purchase aligned with the buyer's needs and goals.
Buyer's remorse may also arise when you’re forced to choose between multiple options. For example, if you’re experiencing buyer’s remorse, the following questions might be coursing through your mind:
- Should I have waited on this purchase?
- Was this purchase worth the money?
- Will I use this item as I intended to?
- How will this purchase affect those around me?
Car Buyer's Remorse
You can have buyer’s remorse over anything, whether it’s an item of clothing, an electronic, or a new vehicle. Unlike clothing, however, you usually can't take a car back to the dealership if you decide you no longer like it.
You might experience buyer’s remorse if you have any of these feelings:
- Was the price too much for the car?
- Is this the car that I really wanted?
- Did I let the salesperson talk me into this?
- Will the car suit my specific needs?
- Am I going to be able to afford the car for as long as I need it?
- Did I leave out features that I may regret later?
- Will my family and friends agree with my decision?
Car buyer's remorse is sometimes justified, but it can also occur for no valid reason. Even people who take time to weigh the pros and cons and do their due diligence still sometimes suffer from buyer's remorse. Yet, with these types of cases, buyer's remorse is often short lived.
How To Avoid Car Buyer's Remorse
There’s no guaranteed way to avoid buyer’s remorse. After all, purchasing a vehicle is a big investment. It’s normal to have second thoughts after spending a large amount of money on something that you’ll probably have for many years.
One way to reduce the risk of buyer’s remorse is to do your research beforehand. Ask yourself the important questions before you decide to buy a new car. Some questions to consider include:
- Is this car something I really need?
- Will I enjoy having this car?
- Does this car suit my lifestyle and needs?
- Can I afford this vehicle?
- Will I want to have this vehicle for a long time?
- Is there a better option out there?
Another way to potentially avoid buyer's remorse is to create a list of your wants and needs before you start looking at cars. When you shop with a goal in mind, it’s often easier to filter out options that aren’t the right fit.
Saving money should also be a priority before shopping for cars. If you’re feeling secure in your financial situation, spending money on a new or used car might be less stressful. Not to mention, you may be able to avoid buyer’s remorse around purchasing a car that’s too expensive for your lifestyle.
Elizabeth Rivelli is a freelance writer with more than three years of experience covering personal finance and insurance. She has extensive knowledge of various insurance lines, including car insurance and property insurance. Her byline has appeared in dozens of online finance publications, like The Balance, Investopedia, Reviews.com, Forbes, and Bankrate.
FAQs
What is car buyer's remorse? Buyer's remorse is a negative feeling after making a large, often expensive purchase such as a house or car. Sometimes buyer's remorse manifests physically, in sweaty palms and nausea. Buying a new vehicle and then experiencing anxiety, regret, and fear is common.
Can I change my mind after signing for a car? ›
The vast majority of car dealers have no written policies that allow you to rescind the purchase agreement you've signed. This means your only recourse is to plead your case. You can say that you have discovered you don't like the car or that it will stretch your budget and put you in dire financial straits.
What happens if you buy a car and change your mind? ›
If you've purchased a new or used car and have second thoughts, you usually cannot return it. The dealer who sold you the vehicle is typically not legally obligated to take it back and issue you a refund or exchange after you've signed the sales contract.
How long does buyer's remorse last? ›
Buyer's remorse can vary in duration, often lasting from a few hours to several days. However, for more significant purchases, this feeling of regret can linger for weeks or until the issue is resolved, such as through a return or exchange.
Is there a 3 day right to cancel a car purchase in Illinois? ›
No Three-Day Right to Cancel
Dealers are not required by law to give car buyers a three-day right to cancel. The right to return the car in a few days for a refund exists only if financing is not approved. However, some dealers may, by contract, offer a right to cancel.
Can you back out after signing for a car? ›
Chances are you can, and you probably won't be limited to just 30 days. Each state has its own version of a "lemon law" that essentially says you can return a car to the dealership if it develops a serious problem that makes it unsafe to drive. Check with your state to see what they define as a lemon.
How long after signing a contract do you have to change your mind? ›
Cooling-off Rule is a rule that allows you to cancel a contract within a few days (usually three days) after signing it. As explained by the Federal Trade Commission (FTC), the federal cooling-off rules gives the consumer three days to cancel certain sales for a full refund.
How to deal with buyer's remorse after buying a car? ›
How to deal with buyer's remorse after buying a car. First, check local laws and consumer protection rules to see if they apply to your situation. If you changed your mind about the car and can't return or trade it in, there are several options, each with pros and cons. Selling the vehicle yourself is one option.
Can I change my mind on a car I just bought? ›
But once the excitement fades, what are your options if you change your mind about your new vehicle? You generally can't return a car you just bought, but there may be some exceptions if the car is a lemon, the dealership has a return policy or your financing falls through.
What happens if you don't like the new car you just bought? ›
If you buy a new car and find it isn't the right fit, your only option may be to trade it in. However, if the car doesn't work properly or is defective, the car may be considered a lemon.
Generally, there are no penalties for cancelling contracts that fall within the Buyer's Remorse exception. Typically, to cancel a contract, a buyer will need to provide the seller with a written notice of cancellation. However, a buyer must provide such notice within the period of time allowed by the statute.
Why do I feel guilty after buying a car? ›
Buyer's remorse can be described as a feeling of anger, disappointment, or even depression after making a big purchase that you regret. It's common with major purchases, like real estate, boats, and vehicles, which often involve a long-term commitment.
What is the federal law for buyers remorse? ›
The Federal Trade Commission has a law known as the Cooling-Off Rule, which gives a person three days to cancel a sale or back out of a purchase — as long as they request it within three days of signing a contract. Some states also have their own version of this cooling-off rule.
Can I cancel a car loan after signing in Illinois? ›
I understand your frustration, but there is no right to cancel an auto purchase agreement. You should anticipate the dealership refusing to take your return as invalid under Illinois law.
Can you return a car you just bought in Illinois? ›
Illinois has a limited buyers remorse law for used vehicle sales so long as written notice is provided within three days of the purchase date. It needs to be written to be effective, verbal notice would not suffice.
Is there a buyer's remorse law in Illinois? ›
When it exists, the three-day right to cancel permits people with “buyer's remorse” to get out of deals they regret. The three-day “cooling off period” protects people in particularly vulnerable situations. Under Illinois law, consumers are protected with a three-day right to cancel certain types of transactions.
Do you have time to change your mind after buying a car? ›
Absolutely, it's possible to change your mind about buying a car after leaving the dealership. In many cases, dealerships have a return policy or a cooling-off period where you can cancel the deal within a certain timeframe. It's important to check the specific terms and conditions of the dealership though.
Can you back out of a loan after signing? ›
If you decide to rescind, you must notify the creditor in writing. You may not rescind by telephone or in a face-to-face conversation with the creditor.
Can I change my mind after signing an agreement? ›
Generally, a contract cannot be changed or broken unless you and the other party both agree. Usually, a short period of time is allowed to cancel a contract without penalty; it's called the “cooling off period” and it should be described in the contract.
Can you change your mind after signing a document? ›
If consent among all parties has not occurred, then it is illegal to alter a signed contract. Most of the time, however, a contract will include how to change, extend, or terminate itself as standard practice.
