Does a buyer of a used vehicle have the right to demand their down payment back if the dealer cannot find financing?
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Does a buyer of a used vehicle have the right to demand their down payment back if the dealer cannot find financing?
I tried to purchase a used camper trailer 2 days ago; I put $2000 as a down payment. The dealer tried to get us financed through their usual banks and a credit union. But as of today none of the banks will finance us because the credit score they pulled was a lot lower than the one the dealer pulled. The dealer said we can’t cancel the contract and they have 10 days to find a lender. We don’t want to drag this out any longer. We never took delivery of the trailer and we want our money back today so we can find something cheaper that we don’t have to finance. What is our options?
Asked on May 11, 2012 under General Practice, California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
You first need to carefully read your purchase agreement for the trailer that you bought to see if the sale was conditioned upon the dealer being able to provide you with financing for it. If it was and you cannot get the financing that was bargained for, the contract falls apart and you can cancel it and get your deposit of $2,000 back.
The best part of the transaction is that you never took possession of the trailer. I suggest that you meet with the dealer's manager to get matters resolved sooner rather than later.
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