Legal Question in Credit and Debt Law in Arkansas

I bought brand new car, had co signer, put down payment down and signed contracts...two weeks after purchase I was court ordered to rehab and fin co found out and called my co signer asking is to return car. The first pymt wasnt even due and I have plenty of money to pay for car as does my co signer. They will not send payment book. Can they legally back out of our contract after accepting down payment and approving the loan before a payment was ever due

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