AN ACT Relating to the cancellation of motor vehicle purchases or lease contracts with vehicle dealers; and adding a new section to chapter 19.86 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1.  A new section is added to chapter 19.86 RCW to read as follows:

(1) Any motor vehicle purchase or lease contract with a vehicle dealer as defined in RCW 46.70.011 may be canceled at the option of the purchaser, if (a) the purchaser sends notice of the cancellation by certified mail, return receipt requested, to the vehicle dealer at the address contained in the contract postmarked not later than midnight of the third business day following the day on which the contract is signed, and (b) the purchaser returns the motor vehicle to the location from which it was purchased not later than the close of business of the third business day following the day on which the contract is signed. In computing the number of business days, neither the day on which the contract was signed nor Saturday, Sunday, or any legal holiday is included as a business day. Within three business days following receipt of the motor vehicle and receipt of timely and proper notice of cancellation from the purchaser, the vehicle dealer must provide evidence that the contract has been canceled. Thereafter, any money or other consideration paid by the purchaser must be promptly refunded. The purchaser is liable to the vehicle dealer for any damage to the motor vehicle while in the possession of the purchaser.

(2) Every motor vehicle purchase or lease contract between a purchaser and a vehicle dealer must include the following statement, in at least ten-point boldface type immediately before the space for the purchaser's signature:

"Purchaser's right to cancel: You may cancel this contract without any cancellation fee, or stated reason for doing so, by returning the motor vehicle and sending notice of cancellation by certified mail, return receipt requested, to . . . . . . (insert name and address of vehicle dealer). The motor vehicle must be returned by the close of business of the third business day following the day on which the contract is signed, and notice must be postmarked by midnight of the third business day following the day on which the contract is signed. In computing the three business days, neither the day on which the contract is signed nor Saturday, Sunday, or any legal holiday is included as a business day."

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