Can a car dealership take back a car after it’s been financed?

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Can a car dealership take back a car after it’s been financed?

I bought a car at a dealership and financed it with $600 cash down payment and post dated 2 checks, one for $200 and the other $800. It says on the contract a total of $1600 down and they told me to tell the finance company that also. The checks didn’t clear so the dealership left me a message that they will come get the car if I don’t call them back. I don’t have to money to pay them. I have had the car for a month and I’m paying my first payment tomorrow. Do they have the control to take the car back when it’s already financed?

Asked on August 31, 2011 California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You apparently entered into a written agreement with the car dealership to purchase the vehicle that you acquired where it financed the purchase. You were to make certain payments by set dates. Your payments via checks failed to clear due to insuffient funds. The falure to have these checks clear results in a material breach of your agreement to purchase the vehicle.

In all likelihood the purchase and financing agreement that you have with the auto dealership contains a security agreement that upo your default the seller (car dealership) can repossess the car, sell it at auction and if sold, sue you for any deficiency on the sale with respect to your purchase agreement.

You need to pay the car dealership all owed to date before the situation becomes dire with you and the car.

 


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