What are a consumer’s rights if their auto financing falls through after they have traded in their old car and have taken possession of a new one?

I bought a new car 15 days ago and have the bill of sale, as well as all required paperwork. Then 2 days ago the dealership salesman came and took the car back; he stated that the financing did not go through. They did not tell us there where stipulations to the agreement, nor do they have a bail agreement, nor did we sign any paperwork stating anything in regards to what they are saying. At first they where not going to give me back the car I traded in for it; now they have stated that they need all of the paperwork they gave me back first. They said they are willing to terminate all contracts as long asIi give them back the bill of sale. I feel like I have been defraude. Wwhat can I do? What are my rights?

Asked on April 30, 2012 under General Practice, South Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The problem that you have is that you took possession of the new car without confirmation that the loan for it was approved. In hindsight you should have waited to take possession of the new car pending loan approval for it.

To determine what your contractual rights are concerning the car you traded in and the one you bought, you need to carefully read the purchase agreement in that it should set forth the basis as to what results due to the failed loan.

In all likelihood the deal is cancelled and you end up getting your car that you traded in back. I suggest that you consult with an attorney that practices in the area of automotive law further to review your purchase contract the the presumed loan committment papers.


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