Legal Question in Business Law in North Carolina

Yes, its legal. There is no 3-business day right of cancellation or cooling off period. That is only applicable to in-home sales presentations.

You bought it and the car is yours. Your options, if the dealer will allow it, is to take your car back and give them the the new car back; or come up with the $1400.

If you are lucky, they only spotted you a car, which means that the deal is not actually a done thing and you either find a way to pay for the new car or you give it back.

In this economic climate, unless you have a real gas guzzler, I would give them back the new car and stick with what you have. The other option you have is to try and buy another car which is one that you can afford given the trade-off credit that you will get on the new one.

Personally, you should NOT dealer finance a car. Credit unions usually give better deals and you should have your financing all worked out before you go car shopping. Second, you should not be rolling over the trade-off price of the old car into the new car loan. If you keep doing that, you are going to reach a point at which the car you are buying is worth far less than what you owe. You think its not a big deal, but it is. If someone comes along and totals your car, the insurance company is only going to pay what the car is worth, not what you owe. If you still end up owing money, too bad for you, as you will then have to keep paying on a car you don't have but also pay out the nose for some new wheels.

I'm not trying to be rude or a smart alec, but in this economic climate, I just would not recommend that clients do it if it can be avoided.