Legal Question in Consumer Law in Utah

In February I bought a car. I traded my used Golf and paid $2500 cash and drove away. The next day I dropped by and provided additional paperwork for them to complete the loan. I received a call from the bank for the loan, so things were happening. In May I was notified that my loan had never gone through (I had never made a payment so I knew something was up). So all the paperwork had to be rewritten, problem I lost my job, so the loan will not be approved. What are my rights and can I get my $2500 back when returning the car? My used car has been sold and I cannot get it back.


Asked on 6/04/10, 12:14 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

You and the dealer have a big problem. Because the dealer acted as if the loan was made by selling your car and giving you possession of the newer car, it may be liable to "fund" your loan.

You are obligated to pay the purchase price of the car by the terms of the purchase agreement.

I suggest you contact the dealer and suggest that you go to mediation to see if you can make some kind of a deal.

Note: The dealer may try to repossess your car, so do not leave it in a public place.

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Answered on 6/04/10, 3:44 pm


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