Can an auto dealership keep my downpayment if the the loan they were responsible for did not go through?

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Can an auto dealership keep my downpayment if the the loan they were responsible for did not go through?

The dealership lied on the application for financing. It said that I worked for an employer more than the time I stated. The loan did not go through. Can they keep my money?

Asked on March 28, 2012 under General Practice, Utah

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the dealership was the cause of you not obtaining financing and hence not being able to consummate the sale, they may not keep your deposit. When one party to a contract does something which itself prevents performance of the contract, that party is not entitled to keep a deposit or other consideration.


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