Legal Question in Consumer Law in California

Automobile dealership selling practices

Three days ago I purchased a new vehicle. I had a trade-in on which a substantial amount of money was owed. My husband and I were assured several times that the dealership would pay off my loan. When I was asked the pay-off amount I wasn't sure but told the salesperson that I had about 21 payments remaining in the amount of $495 each.

He came back and said the pay-off amount was only $7000. I asked how that could be and he said that's what it was. When we went to the Finance office the finance person also said the pay-off was only $7000. I told him the same thing I told the salesperson, i.e., how many payments I owed. The finace person ssaid ''we checked and that's the right amount''. I thought maybe I still owed a lot of interest and that what's the difference was. After being reassured several times that the pay-off amount was correct, I signed the contract. However, I did not sign the form agreeing to pay the difference between the $7000 and what my pay-off may be.

I'm angry and feel like the whole deal was misrepresented. The salesperson also falsified our credit information. What recourse do I have to get out of this deal and what should I say to the agency? Thank you!


Asked on 8/22/01, 5:12 pm

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

Re: Automobile dealership selling practices

you will have to file a lawsuit.

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Answered on 8/23/01, 8:00 pm
Alexander Trueblood Trueblood Law Firm

Re: Automobile dealership selling practices

It is not clear from your post what the dealer put on the contract...$7000 or a higher amount. You should have the contract reviewed by a consumer law specialist for compliance with the Auto Sales Finance Act. You may be able to get out of the deal because of fraud or failure to comply with the Act.

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Answered on 8/25/01, 7:44 pm


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