Legal Question in Consumer Law in New Jersey

Re: New car purchase

This is appears to be what is known as a "yo-yo" sale, where the dealer is trying to change the terms of the contract after the transaction is complete. Often the reason is that the dealer was unable to obtain financing at the promised rate. In this situation, the dealer may be in violation of the Truth in Lending Act (only if the amount financed is under $25,000) and/or the Fair Credit Reporting Act, in addition to being in breach of contract. However, as this was a New Jersey dealer, the law of New Jersey will apply (in addition to the above mentioned federal statutes). Any lawsuit would most likely have to be brought in New Jersey. However, please contact my office directly if you would like to discuss further.

Re: New car purchase

Two principles apply. First, a contract cannot be changed unilaterally. Second, a contract is not voidable because of a unilateral mistake. If you have fulfulled all of the terms of the contract, the dealer cannot decide to change the contract later no matter how bad a deal it is for him and even if he has to provide the financing himself.

That said, some dealers do this intentionally in which case the papers may be set up so that the sale was conditioned on obtaining financing approval. There are a lot of variations many of which violate one statute or another. I suggest that you discuss the details with a lawyer and consider what your course of action should be.

See also: http://info.corbettlaw.net/lawguru.htm