It is based on the language of the purchase contract. Look at your purchase contract, where a there is a long yellow document that says “RETAIL INSTALLMENT SALES CONTRACT” at the top. After turning the page back of the purchase contract you can find the box that says “Seller’s Right to Cancel.” It is at the bottom of the second column.
Car dealers’ business is to sell cars to consumers, not financing cars that consumers buy. So, this includes an advice that after you sign the purchase contract and leave with the car, the dealership’s next step is to find a finance company or bank to buy your contract. Thus the car dealer is given an opportunity to find someone to buy your purchase contract. Most of the time this is not a problem. In case, if the car dealer cannot find someone to buy your purchase contract, the purchase contract can be canceled. But, if the car dealer doesn’t not notify you within 10 days of the date on the purchase contract, then the purchase is final and cannot be cancelled.
