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Dealer Recourse?

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Reinermom

Member
What is the name of your state?CA

What exactly is dealer recourse? My son obtained financing thru a used car dealer, the fin Co. repo'd the vehicle after they'd tacked on insurance (about 5 months later), so they say he was behind because he had only paid the regular due amount (as his insurance through us, his parents, he did not pay the increased amount plus he sent proof of ins w/his payments).

To make a long story shorter', the finance company then allowed this dealer to pay off the loan - the day after the repossession, thus, my son was unable to reaffirm his loan with the FC. I (mom) was able to pay off the amount due to the dealer (with copies of everything including the cashiers check he endorsed), got the pink slip and registered in CA, etc. When questioned the FC states the "dealer recourse" allowed the dealer to do this.. and they did nothing wrong. CA DMV investigators told me that the FC pretty much sold the vehicle out from under us, apparently something in CA they aren't allowed to do before a certain period of time elapses. I do have the civil codes provided me by DMV here in CA.

The dealer was not a co-signer of the loan that my son signed...Could anyone explain these actions and perhaps what I action I might be able to use to get back some of my expenses related to all of this.
 


JETX

Senior Member
Your going to have to go back and re-read the lender and dealers agreements that your son signed. Presumably, there is a clause somewhere in there as to what occurred.
"Dealer recourse" is exactly what it says..... what the dealer may do in the event of the debtors breach or failure to comply with the terms of the agreement.
 

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