Legal Question in Legal Ethics in California

I purchased a car from a dealership through financing last week and a week later they told me i had to bring the car back because they couldnt get assistance from a financial institution. On the agreement (which i already signed) it says they have the right to get the car back if they cant get assistance and they have ten days to notify me. They notified me in eight days but the thing is they lied to me. They asked me if i would buy the car if they were able to get the car approved for financing, and i told them yes. They told me they got the car approved so i signed for it, but apparently they didnt get it approved because a week later they called me and asked if i found a cosigner. I told them that they said the car was already approved and i didnt need a cosigner, and they told me it was their bad because they thought i would be approved. Can they take the car back since they lied about getting the car approved for financing?


Asked on 1/14/10, 6:55 am

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

This is called a "yo-yo" sale. Next time somebody gives you a contract to sign that says they can take the car back, cross out that part and write in, "Delivery of vehicle shall constitute final approval of financing."

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Answered on 1/25/10, 11:29 pm


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