Legal Question in Consumer Law in California
Dealer Error on Downpayment
I purchased a used car with a $1000 downpayment. Dealer mistakenly put $2000. Do I have to correct this error? Can dealer bring a suit to recover?
3 Answers from Attorneys
Re: Dealer Error on Downpayment
if it was a mistake he will correct it but i think you probably find it was fraud and you may very will end up in court. you will also probably lose. why people sign things they have not read is something i really dont understand but there is only so much you can do to protect people if they wont protect themselves.
Re: Dealer Error on Downpayment
If the contract says you paid $2,000 down that means you already paid the money, you do not owe anything, except the finance balance. Often a dealer will write down that you have put more down than you actually have so that you will qualify for financing. If the finance company finds out or if you do not qualify then you will have to give the car back and look for another deal. The dealer probably won't sue you. They make their living by selling cars, not by filing lawsuits.
Re: Dealer Error on Downpayment
It's possible that the dealer gave you a credit from some other source besides cash. Did you trade in a vehicle with positive value of $1000? Was there a mfgr rebate or a promotion? Otherwise, I think this is unlikely to be a mistake, and could be a dealer attempt to get the finance company to take the paper. If it really is a mistake and the dealer wants the money back, I wouldn't resist.
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