Does a auto dealer have the right to back out of contract for new car two days after paperwork has been signed?

Generally, once a car dealer and a customer have signed a sales contract for a new car, both parties are legally bound by the terms of the contract. Dealerships typically require a non-refundable deposit to hold the vehicle, creating a legally binding agreement. So after the paperwork is signed, the dealer may not have the right to back out of the contract unless specific contingencies allow for such termination, typically involving fraud or misrepresentation.

Here's a more detailed explanation:

1. Legally Binding Contract: When you sign the sales contract for a new car, it creates a binding agreement between you and the dealership. This means both parties are legally obligated to fulfill their respective responsibilities as outlined in the contract, such as the dealership delivering the purchased car and you making the agreed-upon payments.

2. Rescission Rights: In some jurisdictions, there may be a brief rescission period during which either party can cancel the contract without penalty. However, this rescission period is usually limited to a matter of hours or a few days at most after signing the contract, and typically does not extend to several days.

3. Contingencies for Termination: Dealerships may include certain contingencies in the contract that allow either party to terminate the deal under specific circumstances. These contingencies are typically related to fraud or misrepresentation on either side.

For example:

- If the dealership discovers that you provided fraudulent information on the credit application, they may be able to terminate the contract.

- If the vehicle is found to have undisclosed defects or issues not mentioned during the sales process, you may have the right to rescind the contract.

It's important to review the terms of the sales contract carefully before signing to ensure you understand any contingencies or special conditions that may permit termination of the contract.

If a dealer attempts to back out of the contract without a valid legal basis, you may have legal recourse, including filing a complaint with the local consumer protection agency or pursuing legal action to enforce the contract.

Consulting with a legal professional experienced in consumer protection laws specific to your jurisdiction can provide you with precise guidance based on your situation and the local regulations.