Here's an overview of the automobile right to rescission in Colorado:
1. Applicable Contracts: The right to rescission applies to retail installment contracts for the purchase of a motor vehicle. This means that it covers vehicles purchased from dealerships or vendors specifically for personal or family use.
2. Timeframe: You have three business days from the date you sign the contract to cancel the agreement. The three-day period starts from the date you receive a fully executed copy of the contract.
3. Exceptions: The right to rescission does not apply to all vehicle purchases. Here are some exceptions:
- The contract is for the purchase of a commercial vehicle (e.g., trucks or vans used primarily for business purposes).
- The vehicle is purchased from an individual or a private party (as opposed to a dealer).
- The contract involves a trade-in of another vehicle.
- The vehicle is repossessed by the creditor for default in payments.
4. Cancellation Process: If you decide to cancel the contract, you must notify the seller in writing within the three-day rescission period. You can do this by sending a signed and dated cancellation notice to the seller's address specified in the contract. It is recommended to send the notice via certified mail or some other traceable method to have proof of delivery.
5. Return of Vehicle: Upon cancellation, you must promptly return the vehicle to the seller in its original condition (except for ordinary wear and tear). If you've already taken possession of the vehicle, you should keep it in a safe and secure location, ensuring that it's protected from damage or theft.
6. Effects of Cancellation: Once the contract is canceled, it is considered null and void, and all obligations under the contract (such as payment of the purchase price) are rendered void. The seller is obligated to refund all payments made by the buyer, including the cash down payment and any trade-in value.
It's important to carefully review the terms of your purchase contract and understand your rights and obligations before signing. If you have any questions or concerns about the automobile right to rescission in Colorado, it is advisable to consult with a legal professional. They can provide you with specific guidance based on your circumstances.
