Legal Question in Consumer Law in Texas

Breach of Contract

We bought a suburban 3 weeks ago. At the time the finance manager said that we had only been approved for a certain amount so our payments were lower than expected. We had a trade in and were required to pay $500 down. We surrendered the trade, paid the down payment. The contract has been signed. Now 3 weeks later they call and say that the financing didn't go through. The contract has already been signed stating the trade, the down payment, and the terms for 60 months at $493.00 a month. Can they legally do this? Can they say that there is no done deal after the contract is signed? They say that the financing that they have found now is going to require a substantial down payment and that we need to come pick a different vehicle. Please help me with this.


Asked on 5/24/04, 5:04 pm

3 Answers from Attorneys
Sharon Campbell Sharon K. Campbell

Re: Breach of Contract

This is what is called a "yo-yo" scam. It happens all the time. The dealer has violated all kinds of laws. You have several kinds of claims. They cannot make you sign a new deal.

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Answered on 5/24/04, 6:37 pm
Peter Bradie Bradie, Bradie & Bradie

Re: Breach of Contract

Read your contract very carefully to see if they have any qualifiers concerning financing. And contact the consumer fraud division of the Texas Attorney General's office and let them know that the dealership is trying to "de-horse" you. That's a scam that may be legal, depending upon your contract.

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Answered on 5/24/04, 6:51 pm

Re: Breach of Contract

Take a look at this website. You have to copy and paste the URL but I think it will give you some additional info.

www.jtexconsumerlaw.com/TCL_V6N3_Spring2003/.pdffiles/ YoYoV6N3.pdf

If you need a pdf reader you can download the free one from www.adobe.com

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Answered on 5/24/04, 11:09 pm


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