The term, grace period, in car buying and leasing, often (but incorrectly) refers to a period of time in which a customer can change his/her mind and return the car for a full refund. More accurately, it should be called a “cooling off period” or “right-of-return” period. It is commonly thought that there is a 3-day rule or 72 hour law that applies.

Unfortunately, there is no grace period or cooling off period for automobile purchases or leases, unless such a right is specifically given to a customer in writing. The confusion comes from there being a 3-day cooling off right-of-return law for door-to-door purchases and generally to purchases made from a company selling products and services from a location other than their normal place of business.

Grace period more accurately refers to the time that a finance company allows between the time a payment is due to the time it is considered late.