What is the safest way to voluntarily relinquish a vehicle I can no longer afford?
Rescission is the name for the remedy that terminates the contractual duties of both parties, while reformation is the name for the remedy that allows courts to change the substance of a contract to correct inequities that were suffered. In order to have a rescission, both parties to the contract must be placed in the position they occupied before the contract was made. Courts have held that a party may rescind a contract for fraud, incapacity, duress, undue influence, material breach in performance of a promise, or mistake, among other grounds.
There are two scenarios in which you may be able to return your vehicle to the dealer or manufacturer. The first scenario, known as a “buy back”, occurs when you and the dealer from whom you bought your new or used vehicle mutually agree to the vehicle’s repurchase after you take delivery.
The second scenario is when your new passenger car, light truck or motorcycle has repeated or serious mechanical problems. You must submit a request for arbitration within 30 months of the vehicle's original delivery date. You do not have to be the original owner of the vehicle to request arbitration, but your vehicle must meet all the qualifications. You must also apply for arbitration within 30 months of the vehicle's original delivery date to its first owner.