Once you sign an automobile sales contract, you're legally bound by all its terms and conditions. The contract can only be canceled if the dealership permits it, or if there is legal ground for it, such as fraud.

In fact, California state law requires the following statement to be printed on each retail sales contract and lease, and to be posted in each sales cubicle:

NO COOLING OFF PERIOD. California law does not provide for a "cooling off" or other cancellation period for vehicle lease or purchase contracts. Therefore, you cannot later cancel such a contract simply because you change your mind, decide the vehicle costs too much, or wish you had acquired a different vehicle. After you sign a motor vehicle purchase or lease contract, it may only be canceled with the agreement of the seller or lessor or for legal cause, such as fraud.

Before you buy a car, make sure that the contract you're signing reflects exactly what you're expecting, and that the car you're purchasing is exactly what you want—at the price you believe is fair. Do your homework before you go into the dealership, because you won't be able to change your mind later when you find out they charged you twice what the car is worth!

For more information, please browse our "Tips on Buying a Car."