Can a dealer charge a milage charge on a vehiclethat Ihad to return because they could not get me financed?

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Can a dealer charge a milage charge on a vehiclethat Ihad to return because they could not get me financed?

I bought a vehicle from a dealer and a week or so later they called and told me the financing had changed and i needed to come in and sign new papers. When i got there they told me i did not qualify without an additional $1000 dollars down. I was not able to come up with this so they told me I needed to pick something cheaper. They had nothing else I wanted so I asked for my down payment back, and after much hassle they told me they would be charging me a mileage charge to the tune of $450. Is this legal and if not what are my remedies.

Asked on August 14, 2010 under General Practice, Oregon

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Retail sellers of motor vehicles are the ones who help you locate financing.  Oftentimes, as an incentive to take inventory off the lot and based on a lot of suppositions by the retail seller/dealer, a consumer is allowed indeed to take a car and sign a document indicating you would get your money back and the dealer would get the car back if you don't get any financing.  Unfortunately, you really need to read the fine print.  If the contract somehow and your state law somehow both allow for a mileage charge, then you would need to pay it.  However, most states simply look at this as a contract situation that doesn't show any consideration on the dealer's part for charging you a mileage charge.  The initial offer and consideration is you agree to give the car back if the financing doesn't come through and the dealership gives you the car and is expected to locate financing for you.


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