Before you buy, know your rights and options

Psst. Hey you. Want to buy a used vehicle that you can return for any reason and get your cash back?

Even if it's just because you don't like the color?

That may sound like a used-car scam, but it's not.

It's the law.

The California Car Buyer's Bill of Rights, which went into effect in 2006, mandates that car dealers must offer a buyer a two-day return option on most used vehicles.

It's just one of the legal protections that apply specifically to used-vehicle purchases.

But be warned: All of these protections, including the cancellation option, have loopholes. And most apply only to vehicles bought from dealers, not private parties.

Some parents are fond of proclaiming: "Buying a used car is buying someone else's troubles."

By knowing your rights, you can hedge your bets against Dad or Mom saying something even worse: "I told you so."

Return option

The opportunity to return a used car, even after signing the papers and driving it off the lot, can be a great relief, especially if you buy "as is" and didn't have the vehicle inspected by a mechanic before purchase.

This choice gives you time to get the vehicle properly checked. And there is a certain comfort in knowing you can return a car if you're hit with a major case of buyer's remorse.

But you have to pay for the privilege.

The fee to buy a return option usually depends on the price of the car. Under the law, a dealer can charge a maximum of $75 if the price of the car is $5,000 or less. On the upper end, the fee can be as much as $400 on a $40,000 used car.

Over $40,000 and you're on your own -- dealers aren't obligated to offer a return option on a vehicle above that price.

The option fee isn't returnable. Think of it as similar to buying insurance in Las Vegas if you think the dealer might have blackjack.

To get your refund -- which includes registration costs, taxes and other purchase fees -- the auto must be returned within two days unless the dealer agrees in writing to extend the option period.

Also, it can't have been driven more than 250 miles (so, no quick trips to Vegas), and it has to be in the same condition in which it left the dealership, minus two days of normal wear and tear.

The dealer can charge a restocking fee, but only up to a set limit. For example, the restock fee for a vehicle priced less than $5,000 can be no higher than $175, and the option fee is deducted from that.

Those fees are not to be sneezed at, but they're better than being stuck with a lemon.