Is it illegal to buy2 cars at once and finance both through different banks?

We bought 2 cars. There is now a total of 4 cars under my name. I am paying for my son, daughter, wife, and myself. I am having a lot of problems with the dealer that I bought my car and my son’s car from. I want to cancel the deal now but I can’t. I heard from a friend that since the dealer went through 2 banks to finance both cars, we can expose that to the banks and the deals will have to be cancelled. Can we do this or are we stuck with these cars?

Asked on March 19, 2011 under General Practice, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

First, there is nothing illegal about going through 2 (or more!) banks to finance 1, 2, or more cars, so it's not clear why this would create an issue.

Second, even if the dealer did something improper or illegal vis-a-vis the financing, that may very well affect the dealer, not you--that is, in many circumstances, the dealer would find himself facing some liability, but that would not necessarily void your purchase of the sale. As a general matter, a dispute between two parties does not automatically invalidate a transaction, even a related one, with a third party.

If you think the dealer did something improper that does directly touch on your puchase (and again, not just the dealing of the dealer with the bank(s)) in some sigificant or material way, you should consult with an attorney who can evaluate the circumstances in detail. From what you write, however, there does not necessarily appear to be grounds to void the transaction(s).


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