Legal Question in Consumer Law in California

We purchased a truck from a dealer signed a contract that included financing. The next day, we received a call from them requesting to change our terms from a 6 year loan to a 5 year loan bringing our payment up significantly. They said a bank would not finance us for a 6 year loan but they would do a 5 year loan. Is this legal?


Asked on 6/18/11, 9:15 am

1 Answer from Attorneys
Stephen Barnes Barnes Law Firm

The dealer has 10 days to obtain financing for your purchase. If they are unable to obtain financing in that 10 day time frame and notify you in writing then they can "unwind" the deal. That means they can ask you to give them the vehicle back in exchange for your down payment, trade in etc.

If they have already sold your trade in then they are required to reimburse you for the amount stated on the contract for the trade. They can not require you to sign a new contract.

The dealer can either unwind as stated above or carry the original contract in house on the terms stated. If they want you to sign a new contract I would not agree to that unless you really want to and the terms are acceptable.

Read more
Answered on 6/18/11, 10:47 am


Related Questions & Answers

More Consumer Law questions and answers in California