What to do if a dealership call the deal off after all documents have been signed and trade-ins delivered to them?
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What to do if a dealership call the deal off after all documents have been signed and trade-ins delivered to them?
My husband and I just purchased a “newer” vehicle from a dealership. We traded in 2 sight unseen vehicles, both of which ran when we dropped them off. We signed all of the financial forms, gave a down payment and finished the deal 5 days ago. We delivered the 2 vehicles the following day. Then 2 days later, I received a phone call from the dealership. They said that they want their car back and that they do not what to take one of our trades anymore as it was having engine problems. What are mine and my husband’s rights?
Asked on November 12, 2011 under General Practice, Oregon
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
You have the right to enforce the contract and have the vehicle you purchased. Once the contract is executed by both parties, one party may only lawfully terminate or void it in the event that 1) the other party breached it some material way; or (2) the other party knowingly made a material misrepresentation. ("Material" means "important" or "critical" in this context.) If the dealership had agreed to accept the vehicles as they were, and you did not knowingly lie or misrepresent about the vehicles, the dealership will be obligated to go through the contract, since you honored your obligations. That perhaps the dealership made a bad deal and should have inspected the cars first is not your concern.
So as long as you did not knowingly lie, and you did what the contract and paid (including trade ins) what the contract calls for, then based on what you write, you should be able to enforce the deal.
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