If I returned a new car due to a denial of financingand asked for my trade-in back but they sold itwithout paying it off, what do I do?

UPDATED: Sep 17, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 17, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I returned a new car due to a denial of financingand asked for my trade-in back but they sold itwithout paying it off, what do I do?

I traded in a car and bought a new one. The original lender that I signed my contract with sent me a letter and denied my loan. I contacted dealership and asked, I was told there was a new bank so I needed to come sign a new contract. I went to sign and the rate went from 11% to 20% so I decided against it and returned the car and asked for my trade back. The manager told me that they sold it 2 weeks ago. My lender for my trade vehicle called me the same day and informed me my payment was late but I hadn’t had the car for 3 weeks. Now I’m carless and I’m going to have a hit on my credit.

Asked on September 17, 2011 under General Practice, Ohio


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

In order to answer your question, did the car dealership accept the car that you bought from it in the return where you do not owe it any money for the vehicle just purchased? If so, then the car dealership is obligated to return to you your car that was used on the trade in or if it is unable to do so since it sold it, to pay you the cash value that it agreed to when you bought the vehicle that you have now traded in.

Assuming you receive the cash value that the car dealership agreed to give you for the trade in of the vehicle that you were makng payments on, you can then continue to pay the current lender for the car that the dealership sold that you no longer have.

I suggest that you consult with a contracts attorney experienced in car sales to assist you further.

Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption