Legal Question in Credit and Debt Law in California

"Car Dealer wants to change contract"

I recently payed $1800.00 down on a used car. The dealer said no problem about my bad credit. Now two weeks later they want a new contract with more money down. Are they not bound to the first contract? Can they take the car if I don't sign this new contract?

also if they do take the car, do I recieve all my down payment back, because they cannot get the car on a payment contract with anyone?


Asked on 9/22/99, 3:13 pm

2 Answers from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re:

it may depend on how it is worded. Unless it allows them to back out if they cannot finance it then they are stuck with it. Both sides can agree to cancel it but then you get your money back.

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Answered on 9/23/99, 4:04 pm
John Hayes The John Hayes Law Offices

Re:

Most contracts have a clause that states that the contract is subject to credit approval. A similar situation happened to me and basically I canceled the contract and got my trade in back. If they refuse to give you your down payment back then you may sue them for breach of contract.

Best of luck

John Hayes

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Answered on 10/01/99, 12:42 am


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