2015 GNYADA MEMBERSHIP DIRECTORY

HOT TOPICS 2015 GNYADA Membership Directory

COOLING-OFF PERIOD: NOT IN NEW YORK

Here’s a question we often get from dealers: How does the three-day cooling-off rule effect us? Under a cooling-off rule, also called a three-day cancellation period, consumers often have the right to cancel some types of contracts within three business days after signing and are entitled to receive a full refund. No matter what you call it, New York State does not have a cooling-off period or three-day cancellation law for motor vehicle purchases made or completed at the dealership. Plus, automobile sales are specifically exempted from the FTC’s Cooling-Off Rule. Year after year, GNYADA has successfully lobbied against a cooling-off period applying to automobile sales in New York. That’s not the case in some states. The state of California enacted a two-day cooling-off period law applicable to used car sales only that allows consumers to pay extra for the right to return the car. If the customer ultimately decides to return the vehicle, California dealers are permitted to charge a restocking fee, too.

GNYADA will continue to lobby against any cooling off period on behalf of New York dealers.

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