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?

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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

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 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.


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