Legal Question in Consumer Law in California

Check the lemon laws in effect. Google this. These usually apply to cars or trucks that a series of problems such that it would be declared a "lemon". A lemon can be taken back to the dealer. You have not mentioned any warranties that came with the sale. Did the contract say "as is" for example? If so, you would have little recourse, but to sue in small claims for fraud...if you could prove that the dealer knew about the problems and deliberately hid them from you. What you say about the transmission is another matter altogether, because you could show that the dealer was negligent in not properly "sealing" the transmission which consequently leaked. It could now be ruined. The arrangement you have with a bank or credit union regarding payments has little to do with the fraudulent dealer...unless they are one and the same. So, you would probably have to continue paying on the loan regardless of the condition of the truck. Check the sales contract! See what it says about warranty.