Car Contract of Sale

[iiell]

What is the name of your state (only U.S. law)? Utah

Is it illegal to predate a motor vehicle contract of sale? I bought a car, signed a contract and left the lot that day, with the car. Well...a day or two later I get a call from the car dealer, the person on the phone was saying something regarding problems with financing. I go back in and they tell me that I need to sign a new contract. This contract was predated for the same day I originally left the lot with the car. I still have both contracts and would like to know if I can get out of this contract because I no longer want, nor can afford this car. And they are threatening legal action, wage garnishment, etc...

Thanks!

 

[TheLawMan]

iiell,

From your summary, it seems that the matter regarding the date is somewhat irrelevant. The fact is that you purchased the car and drove it away on the date listed on the (second) contract. Even if the date was an error, you (the buyer) and they (the seller) assented to the purchase along with the agreed upon terms. This is clear given that you paid (or received financing) and they transferred ownership of the vehicle.

Unless there is something more to the story, the contract is fully effective and you are legally bound to its terms.

 

[iiell]

From what I am reading, this is part of the yo yo car sale scam and backdating a contract is illegal. Am I right?

 

[TheLawMan]

Please explain your theory as to how this is a scam.

I presume from your summary that the original contract had some error with it or with the financing, at which point the dealership contacted you to come in and fix that issue by drafting a new contract. The date of the contract was not "predated," but simply reflected the date of the initial agreement whereby you took possession of the vehicle. Given that you took possession of the vehicle, drove it off the lot, and still maintain possession of the vehicle, any minor issues with the contract will be moot because you have already accepted the terms of the contract by keeping the vehicle (in law this is called implied acceptance).

Unless you were defrauded or there is something seriously defective with the vehicle, you have no case.

 

[iiell]

Rewritten Contract/Backdating:
Often a customer won't qualify for financing under the terms of the first purchase contract and may be required to increase a down payment, APR, etc. to quality for a loan. The dealership then has the customer sign a second contract with the new terms but backdates it with the date of the first contract, sticking the customer with financing charges for a period during which the contract wasn't yet in effect. In addition to making a material misrepresentation of when the customer takes the obligation of the new contract, a backdated contract often violates the single document rule (see below) because another form, usually called "Acknowledgment of the Rewritten Contract," has the actual date when the contract was signed. In addition, many customers aren't informed that they can opt to cancel the contract and return the new vehicle and have the down payment and trade-in vehicle refunded, rather than signing a second contract with less favorable financing terms.


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A dealership might choose to backdate a contract for convenience, or because the lender’s acceptance of the deal was based on the original sale date, but more often than not it is because the dealer has found a way to make more money and needs to rewrite the contract so that they can pocket the extra profit. Regardless of the reason, backdating a contract is illegal. Using any date other than the physical date that the new contract is signed on violates several consumer protection laws and quite often will entitle the buyer to either monetary damages or a full recession of their contract including a refund of all monies paid to the dealer.

 

[TheLawMan]

In my previous posts I stated that unless there is more to your story and you were defrauded, the contract would be enforceable. While it is true that according to the overview of the theories you may be successful in being released from the contract, I have not read anything factual from your summary that supports this argument. Therefore, again, unless there is more to your story the same still probably holds true.

 

[Zigner]

So...now it's time for the OP to fess up and tell us what the difference between the two documents actually is...

 

[iiell]

Well the price and terms of course!

EDIT: And on a side note, I was never told that I didn't have to sign this new contract. They were making it sound as if I had no choice but to sign.

 

[Zigner]

Well the price and terms of course!

What are the differences?

ie: Old one says xxx and new one says yyy...

 

[iiell]

I am still at work so I will have to wait to get home to have that information available.