If I financed a used car from a dealership and they cancelled the contract, what rights do I have?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I financed a used car from a dealership and they cancelled the contract, what rights do I have?
I financed a used car, and 4 days later, they said that my credit did not allow me to be approved for the loan. Now they say that I have to come in to sign a new contract with a cosigner. They called my father with the same information, saying that he needs to come in to cosign, when he never agreed to do so. We were told by a friend that it might be considered material misrepresentation, because they implied that we were obligated to do so. Is that true? Now I have given the car back, and have not had my down-payment returned. How long do they have to give it back?
Asked on July 29, 2010 under General Practice, Colorado
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If they cancelled the contract, you need to have your down payment returned. They cannot keep your money while not honoring the contract. There is no hard and fast rule for how long they have, but if you can't get a committment as to when they will return the money, it may be time to speak with an attorney.
It's one thing if they "simply" violated their contract. If you believe that they deliberately made material (important) misrepresentations to you, then you might also have a fraud claim against them. If so, that might increase what you could sue for. That would be another matter to discuss with a lawyer. 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.