Legal Question in Credit and Debt Law in California

Re: Auto Credit Loan

ANSWERS TO YOUR QUESTIONS. ANSWERS ARE IN CAPS.

Can the contract be broken if we return a defective car to the dealer? DEPENDS. LIKELY, THE CONTRACT IS BETWEEN YOU AND THE FINANCE COMPANY, NOT THE DEALER. IT DEPENDS UPON HOW THIS TRANSACTION WAS STRUCTURED. THE STATUTES ON POINT HERE ARE EXTREMELY TECHNICAL. A REVIEW OF THE UNDERLYING DOCUMENTS WOULD BE NECESSARY. IF THE DEALER DEFRAUDED YOU, THEN YOU WOULD SEEK RESCISSION OF THE CONTRACT, REGARDLESS OF WHO THE CONTRACT IS WITH.

Car was purchased as-is no warranty, but car should be Guaranteed and certified to work properly. NOT NECESSARILY. THAT'S WHAT "AS IS" AND "NO WARRANTY" MEAN: NO WARRANTY. THE DEALER IS TELLING YOU UP FRONT THAT HE IS OFFERING NO GUARANTEE AND YOU ARE BUYING THE VEHICLE AS IS. THAT SHOULD HAVE BEEN YOUR FIRST CLUE THAT SOMETHING WAS NOT RIGHT ABOUT THIS DEALERSHIP. AGAIN, IT'S GOING TO DEPEND UPON WHAT REPRESENTATIONS WERE MADE TO YOU PRIOR TO AND DURING THE SIGNING OF THE CONTRACT; AND TO SOME EXTENT, THE THINGS THAT WERE SAID/WRITTEN AFTER YOU STARTED HAVING PROBLEMS WITH THE VEHICLE.

The manager of the dealer said that technically he does not need to fix anything because of as-is no warranty. AGAIN, IT DEPENDS. IF THERE IS NO WARRANTY, AND MORE PARTICULARLY, NO SERVICE CONTRACT, THEN LIKELY, THE STATEMENT IS TRUE. BUT IT REALLY DEPENDS UPON WHAT REPRESENTATIONS WERE MADE BY THE DEALER TO YOU TO INDUCE YOU TO ENTER INTO THE CONTRACT.

Will our credit be harmed if we return the car? PROBABLY. IT WILL LIKELY BE CLASSIFIED BY THE FINANCE COMPANY AS A VOLUNTARY REPOSSESSION. AFTER THE CAR IS SOLD AT AUCTION, YOU WILL LIKELY BE HELD RESPONSIBLE FOR WHAT IS KNOWN AS A DEFICIENCY BALANCE. AGAIN, IT WILL DEPEND UPON WHAT TYPE OF CONTRACT YOU SIGNED.

Can they classify the sale as a Repo? YES.

In any given case if the car is returned, can we recieve our prior deposit? YOU WILL MOST LIKELY HAVE TO SUE THE DEALER AND FINANCE COMPANY TO GET IT BACK. YOU WILL HAVE TO PROVE EITHER FRAUD OR A FAILURE OF CONSIDERATION UNDER THE CONTRACT.

What complications can we expect from the Dealer? THE DEALER WILL NOT WANT TO RETURN MONEY OR ACCEPT BACK THE CAR.

What can you advise to handle my case? WE ARE CIVIL LITIGATORS. IF THE DEALER'S CONDUCT RISES TO THE LEVEL OF WHAT IS KNOWN AS AN UNFAIR BUSINESS PRACTICE UNDER BUSINESS & PROFESSIONS CODE 17200, THEN WE WOULD BE INTERESTED. WHETHER WE ARE RETAINED TO REPRESENT YOU ON AN HOURLY OR CONTINGENCY BASIS WILL DEPEND UPON THE FACTS OF THE CASE. WE WOULD NEED TO CONDUCT A THOROUGH REVIEW OF THE UNDERLYING DOCUMENTS, AMONG OTHER THINGS. IF/WHEN YOU ARE READY TO PROCEED, YOU SHOULD FEEL FREE TO CONTACT US VIA EMAIL. AT ANY RATE, YOU MUST MOVE QUICKLY AND SEEK OUT COMPETENT LEGAL REPRESENTATION IF THE FINANCE COMPANY HAS ALREADY BEGUN THE PROVERBIAL KNOCKING ON THE DOOR.

Re: Auto Credit Loan

Did you sign something that said, "As Is Without Warranty?" Did you fail to have the car checked by your own mechanic? You could try hiring a lawyer and suing, but my best guess is that you have made your own bed and the courts will allow you to lie in it. The only exception would be if the seller failed to have the car smogged. There are new CA laws to protect used car buyers, but I don't think they go into effect until Jan. 1st. I would continue paying on your debt if you want to protect your credit.