Legal Question in Civil Litigation in California

dealing with a car dealership

i recently bought a new car from a dealership. at first according to the sales manager i didn't have enough credit so i would have to get a different car financed. but when i told him i would go to another dealership he said hold on he'll see what he can do. he came back and said he worked out a deal with the bank so that it would finance me. under the impression that my financing was cleared through the bank i signed the contract agreeing to the specified terms. two weeks later the finance office from the dealership called me and said i would have to take the car back because they couldn't find a bank to finance it. i went to the dealership a asked what was going on, the sales manager went to the finance building and came back and said that there was a mistake and everything was alright. then after another week he calls me and says they couldn't find a bank to finance it, and took the car. so after telling me twice that there was financing(before and after i signed the contract) my question is whether i will be able to take some legal action against them.


Asked on 4/04/03, 8:58 pm

1 Answer from Attorneys
Robert Mccoy Law Office Of Robert McCoy

Re: dealing with a car dealership

The dealer is in a clear breach of contract so long as everything on your application for financing is true--i.e., no exaggerations; the excuse the dealer told me to put it in won't fly. You are legally entitled to the car at the rate of finance you agreed to. The dealer has wrongfully repossessed your car. I am curious though. Did you put any money down? If you did you did not take it back, did you? If you took a check back and cashed it, forget it. Don't even bother calling me. But if you did not get any money back or if you put no money down, then I recommend as a first step a demand letter which almost always will cause the dealer to return the vehicle to you. A demand letter is probably necessary in order to prove the dealer has acted wilfully in the even a lawsuit is filed. If then the dealer will not return the vehicle, I may be willing to file a lawsuit for you. If you turn your contract over and look down the right column on the back side, you will see a paragraph that talks about what happens in the event the dealer is unable to obtain financing. It says he has ten days to notify you of his inability to obtain financing--he waited more than ten days, so he has no legal right to cancel the contract.

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Answered on 4/04/03, 9:14 pm


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