Legal Question in Credit and Debt Law in California
I purchased a 2009 toyota tacoma on Aug. 1 at a dealership in Los Angeles and I got a pproved for low interest rate and at a good selling price. Sounds familiar? I got a call from financing on Aug. 7 saying that the financing fell through and I have to sign a new contract with higher interest rate. It did not sound right so I researched online and found out about yoyo financing. I decided to return the truck the next day, Aug. 8. I told the financing that I am here to return the vehicle because the financing fell through and I did not want to keep the truck. He then told me that there is nothing to worry about because they found a lender and they get to honor the original contract. I told him to prove it to me in writting but he said that the contract is all I needed and the financing is approved so I do not have to return the vehicle or pay more. So pretty much the dealership was bluffin because I showed them I am not desperate to keep the truck.
Today is Aug. 14 and I am still uneasy about the whole deal. The truck currently has 230 miles and I plan not to drive the truck until I received the first auto loan bill which is due on September 15. Am I doing this right? I know I've seen some people have said to return the vehicle but the dealer will not take it back because they said its approved. Should I start looking for an auto loan just in case they pull the YOYO scam on me again? (To my next question, I know this may sound stupid but I am paranoid) After I make my first loan payment, is the deal finalized and I can drive my truck? Tomorrow is the 15th day, does that mean they can no longer change the contract? (I heard 10 days is all the dealers have to make changes in the contract). If I returned the vehicle, will they charge me any fees if they do ask for it back? I live in Los Angeles and I am not familiar with laws regarding returning the vehicle.
A little background. I have a 704 credit score, my wife has 735 who is a cosigner. I have purchased an 05 mazda miata and an 07 ford mustang before purchasing the toyota tacoma and this is the first time I ran into this kind of scam.
1 Answer from Attorneys
You are correct, this was most likely an attempt at yo-yo financing. Do you have a copy of the filled in contract and all of the disclosures? Its your car, you signed a contract. If it was me, I would drive it as you intended. The dealer does not have 10 days to change the contract unless a specific contingency allows so in your contract. If they try to undo the deal again, ask the dealer in writing what contingency in the contract allows them to. If you get the bill in September and it is not for the amount you agreed to, contact an attorney asap. In fact, feel free to contact me.
Best,
Bryan
Bryan C. Becker
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