Legal Question in Business Law in California

Vehicle Loan Contracts

I have gone to a car dealer to fianance a vehicle.I was givin a vehicle and my loan and credit info. was submitted to the bank for approval. The loan was regected because i didnt have a land-line home phone but instead i have 2 mobile phones. The dealer now said that they could take the car back and consider it a reposition, which will be on my credit and my down payment wouldnt be returned. Can they do this? My contract states that if Im not able to get fianance that i will recieve all monies back when vehicle is returned.


Asked on 6/11/99, 8:56 pm

2 Answers from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Vehicle Loan Contracts

it depends on what the contract says. It is unlikely the can legally keep your down payment.

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Answered on 6/28/99, 1:16 am
John Hayes The John Hayes Law Offices

Re: Vehicle Loan Contracts

I had a similar situation happen to my wife and I, but no bad credit rating was put on my credit and my down payment was returned. Technically they are not reposessing your car because to do that you would have to miss a payment, but how can you miss a payment if you are not financed. They are simply taking the car back because the contract was subject to financing. If they do not return your money and put a bad mark on your credit you have a lawsuit for defamation and fraud. If you need advice I offer free consultations and I specialize in contract law. Please feel free to contact me at 805-546-9918 or email me at [email protected]

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Answered on 6/28/99, 2:18 am


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