If I put down a non-refundable deposit on a used car and signed a contract, does the down payment become refundablesince the title shows an undisclosed problem?

Dealer advertised mint condition and provided car fax showing accident but no frame damage or airbag deployment. When I went to obtain financing, I was denied due to a report stating that there was a title problem showing frame/unibody damage to car and that it had been stated at the auto auction where the dealer bought the car. I was told that my insurance company “may not” insure this car if I buy it. I had independent mechanic look at car during test drive and they didn’t pick up on it. Can I get my deposit back based on false info given as to mint condition?

Asked on September 10, 2011 under General Practice, Virginia


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you placed a deposit on a used car and signed a contract for it but before you took possession of it you received information concerning the car that it was not in as good condition as it was represented to be and as a resut you were unable to get financing to make the purchase, you should be able to receive the return of all your money from the dealership and be entitled to rescind its purchase.

If you want to cancel your purchase of the car, you should do the following:

1. write the dealership about what you found out about the vehicle providing supporting documentation for your position seeking a written agreement from the dealer stating that your agreement to purchase has been cancelled;

2. if the dealership refuses to cancel your purchase of it, contact your state's bureau of automotive repairs about the situation. This administrative agency investigates consumer complaints and oversees automotive repair facilities and car dealerships.

Good luck.


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