Complete Guide
Cancellation Fees: What is Legal in Your State?
Dealers often charge illegal "admin fees" of $100 or more. See the legal caps in Texas ($50), California ($0), and other states.
5 min readUpdated January 2026
Key Takeaways
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identified as cancellable in your contract
State Fee Limits
Many states protect consumers from junk fees on refunds.
| State | Max Fee |
|---|---|
| California | $0 (if < 60 days) or $25 (or 10%) |
| Texas | $50 |
| Wisconsin | $0 (Strict prohibition) |
| Florida | 5% or $50 |
| New York | $50 |
If a dealer charges you $100 in Texas, they owe you a $50 refund plus potential penalties.
Frequently Asked Questions
Do I get the fee back if I cancel within the "Free Look" period?
Yes. In almost all states, if you cancel within the first 30-60 days (the Free Look period), you get a 100% refund with NO fees deducted.
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