If a new car loan falls through andthe vehicle must be returned to the dealer, can you be charged for mileage?

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If a new car loan falls through andthe vehicle must be returned to the dealer, can you be charged for mileage?

I purchased a car in 12/10. I had issues with financing. because of a old auto loan. I was told to pay off the loan the next month when I got my tax refund and to keep the car. So I paid off the loan while still driving the car, but I still couldn’t get financing. Now they asked me to return the car form about 120 miles away from where I live. I did so within 24 hours of being notified about the loan However when I returned the car, they are tried to charge me for the miles that I put on iteven though they told me to keep it. What are my rights?

Asked on February 24, 2011 under General Practice, Colorado

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

So basically they are treating it as if it is a rental with charging for mileage.  I need you to read your agreement with them.  What does it say about how things will be handled if the deal falls through? The agreement is a contract between you and the dealership of your rights and your obligations should be spelled out in it.  If the agreement does not address the issue you have then I would tell the dealer that you did all that they asked with regard to the matter, that you did not agree to pay for mileage and you are turning in the car as discussed and that you want the agreement back or something in writing indicating that the deal is void.  Good luck.


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