Online car purchase cooling-off period

Yes, in most cases you can. Here is the legal position and some practical points to be aware of.

Legal position:

When you buy a car online (or by phone, or any other means where you are not physically present at the trader's premises when making the contract), the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 apply. These give you a 14-day cooling-off period, commonly called the right to cancel.

The 14-day period runs from the day after delivery of the car to you. You do not need to give any reason for cancelling.

This right applies only where you are buying from a trader (a business). It does not apply to private sales.

How to exercise the right:

1. Notify the trader clearly that you wish to cancel within the 14-day period. This can be by email, letter, or using any cancellation form the trader provides. Keep a copy of your communication and note the date.

2. Once you have notified cancellation, the trader must refund you within 14 days. However, the trader may wait until they have received the car back or you have provided evidence of having sent it back, whichever is earlier.

3. You are responsible for the cost of returning the car unless the trader has agreed to bear that cost or failed to inform you that you would need to pay for the return.

Deduction for diminished value:

The trader is entitled to make a deduction from the refund if the value of the car has diminished as a result of your handling it beyond what is necessary to establish its nature, characteristics, and functioning. This broadly means you can inspect the car and take a short test drive, but if you put significant mileage on it or cause damage, the trader can reduce the refund accordingly. What counts as reasonable handling is fact-specific, but think of it as the equivalent of what you could do in a showroom or on a brief test drive.

Important qualifications:

If you attended the trader's premises, inspected and test drove the car there, and then concluded the contract face to face at the premises, the distance selling rules will not apply, even if some earlier steps (such as browsing or initial enquiry) were done online. The key question is where the contract was made.

Some traders try to argue that bespoke or personalised vehicles are exempt from the cancellation right. That exemption is narrow and would not normally apply to a standard car order unless it has been manufactured or substantially modified to your personal specification.

Practical next steps:

If you want to cancel, act quickly. Send a clear written notice to the trader within the 14-day window. State your name, the order or registration details, the delivery date, and that you are exercising your right to cancel under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. Keep the car in the condition you received it and avoid adding unnecessary mileage.

If the trader refuses to accept the cancellation or tries to impose charges beyond a legitimate deduction for diminished value, you can escalate the matter. Depending on how you paid, a chargeback or section 75 claim through your credit card provider may also be available. If the dispute cannot be resolved, you could consider alternative dispute resolution or court action, though in most cases a clear and firm letter citing the regulations is enough.