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Recovering money from car dealer

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needadvice00

Junior Member
What is the name of your state (only U.S. law)? NJ

Hello. I appreciate in advance any help that can be provided. My story is as follows-

Several months ago, I went to an auto auction with a used-car dealer and we bid on and won a car. Soon after purchasing, we both discovered big problems with the car and I refused delivery of it. The dealer agreed and said he would return the vehicle to the auction and that I should hear back from him when that is resolved. He stated it could take 2 months. It is now close to 4 months later and the only communication I have had with him was when I called him a few weeks after this happened and he wanted nothing to do with me. I paid him $1000 cash upfront. Part of this was to go toward the vehicle and the rest, his fee. The balance was to be financed. Before I went to the auction with him, he made it absolutely clear that if I did not go home with a vehicle that day, he would not charge me a penny (in other words he only charges his fee if a car is purchased). I am now seeking this money and know that I will have to file suit in small claims to recover it- he is not cooperative. My question is, is there any way that when I sue, he can counter-sue for the cost of the vehicle and/or holding costs (in the event that he was not able to return the vehicle). Again, I want to make it clear that I NEVER took delivery of the vehicle and have NOT heard from him whatsoever (aside from the phone call I made 2 weeks after the transaction).

Thank you very much.
 
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Zigner

Senior Member, Non-Attorney
Auctions are generally as-is/where-is sales. Why would the dealer be liable for this in the first place?
 

needadvice00

Junior Member
Thanks for the reply Zigner.

If he didn't keep the car, why should he keep my money?

And if he did keep the car, whether for his own use, or sold it through his dealership, again, why should he keep my money?

I would have no argument if he charged a fee for his time, regardless of whether a car was purchased. But he clearly stated that he does not.
 

JETX

Senior Member
Several months ago, I went to an auto auction with a used-car dealer and we bid on and won a car. Soon after purchasing, we both discovered big problems with the car and I refused delivery of it.
Absent a specific 'right of refusal' prior to the purchase, you had no right to rescind.

The dealer agreed and said he would return the vehicle to the auction and that I should hear back from him when that is resolved.
Did you get this in writing or somehow confirm in writing (email, fax, etc.)??

I paid him $1000 cash upfront. Part of this was to go toward the vehicle and the rest, his fee. The balance was to be financed. Before I went to the auction with him, he made it absolutely clear that if I did not go home with a vehicle that day, he would not charge me a penny (in other words he only charges his fee if a car is purchased).
Even if you could PROVE that.... you DID "go home with a vehicle". The fact that you refused delivery AFTER the purchase is not relevant.

My question is, is there any way that when I sue, he can counter-sue for the cost of the vehicle and/or holding costs (in the event that he was not able to return the vehicle).
Of course he can. He can also sue you for any 'damages' he incurred due to your breach. Such as, any loss he took in servicing, loss of sale, etc.

Again, I want to make it clear that I NEVER took delivery of the vehicle and have NOT heard from him whatsoever (aside from the phone call I made 2 weeks after the transaction).
Not relevant.
 

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