Legal Question in Consumer Law in California

car dealer breaks lease contract

i went to new car dealer and returned my previously leased car for a new model, all lease agreements and paperwork completed and signed. three days later, the dealer calls backs and says the finance company did not approve my credit and the new payment will be 20% more.

i drove away with the car after the deal was completed. now if i return the car to the dealer and ask for my old one back, will there be costs to me? what legally are my responsablities? are there other options i can consider?


Asked on 3/30/00, 1:51 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: car dealer breaks lease contract

Examine your paperwork. Look for language which makes the new deal subject to credit approval. If not subject to credit approval the dealer may be required to make the deal work. Also note that interest rates are negotiable, the finance company provides its rate to the dealer and then the dealer marks the rate up so it makes a profit. Dispute the new rate.

If there is credit approval language then you may have to negotiate or return the car. They have to return your car to you. However they may have disposed of the car in which case you may have them over a bit of a barrel - tell them that they have to either return your original car or one which is identical or better. They will try to give you some money, usually the low wholesale amount, but don't agree. You may need to go to court.

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Answered on 4/12/00, 9:50 pm


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