What are my rights

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

I have Googled all the advice I can but need legal advice. I purchased a car 15 days ago, traded in my car gave them a substantial down payment (few k's $$$$$), only to find out that they had not financed me when I drove off the lot and call me day 10 (last day seller's right to cancel) stating they need more information to verify employment. my boss stated he called in more than three times to verify, mind you I also have received the same amount of calls and was told twice "Congratulations your welcome package will be in the mail" so here we are day 14 (last night they tell me they cannot finance me and asks me for the car back,mind you they no longer have my car in their possession and only offer me my down and trade in value. I WANT MY OLD CAR plus my down (my car was usable) the trade in cost is nothing compared to a working vehicle in LA. I get a call this morning (day 15) stating that they can get me into a smaller car for double the interest... what are my rights... Do I even have any?

cryssb said:

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

I have Googled all the advice I can but need legal advice. I purchased a car 15 days ago, traded in my car gave them a substantial down payment (few k's $$$$$), only to find out that they had not financed me when I drove off the lot and call me day 10 (last day seller's right to cancel) stating they need more information to verify employment. my boss stated he called in more than three times to verify, mind you I also have received the same amount of calls and was told twice "Congratulations your welcome package will be in the mail" so here we are day 14 (last night they tell me they cannot finance me and asks me for the car back,mind you they no longer have my car in their possession and only offer me my down and trade in value. I WANT MY OLD CAR plus my down (my car was usable) the trade in cost is nothing compared to a working vehicle in LA. I get a call this morning (day 15) stating that they can get me into a smaller car for double the interest... what are my rights... Do I even have any?

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What they are doing is called yo-yo financing. It usually happens to new or unsuspecting car buyers. The dealer runs your credit, gets you to sign a contract with favorable terms, and then allows you to drive off with your new car and spend some quality time with it to get you hooked. Then several days later, or a week later, or sometimes later than that, they call you back and claim they are unable to secure financing for you at the rate they promised. Or they are requiring a higher down payment or higher monthly payments, or a co-signer. If you refuse to comply, they tell you that you have to bring the car back. And, oh, by the way, if you have given them a trade-in, that car is no longer available to return to you. It's all a ploy to get you to come in and sign that new contract with the higher finance rates so they can make more money on the deal. And they are counting on you NOT knowing your rights so that you will do as they demand, because by this time, they know that you are in love with the new car.

California law says that the dealership has 10 days from the original date of the signed contract to find financing at the rate and terms promised in that contract. After that time, THEY cannot change the terms of the original contract unless you sign a new contract that agrees to these changes. They are trying to convince you that you have to in order to keep the car, but that is NOT true.

One way of finding out if a dealer is trying to fool you into a Yo-Yo Sale is to ask them to put into writing why you failed to qualify for financing under the original contract. If they refuse to put it in writing, then you know something is wrong. Either the dealership has been caught lying to you, or they are trying to keep you from finding out that the original contract is no longer valid.

If a dealership has asked you to sign a second agreement and you have refused, it is very important that you immediately take a few easy steps to protect yourself and your rights.

• Remove all of your personal belongings from the vehicle in the event that the dealership decides to repossess it.
• Remove all purchase or lease documentation from the vehicle as well as the vehicle’s books.
• Make a photocopy of the registration sticker and place all documents in a folder or envelope for safe keeping. Remember, every piece of paperwork is important!

Document each and every excuse the dealer makes as to why you need to sign a second contract.
Ask the dealer:

• "Why do I have to bring the vehicle back?”
• "What went wrong with the first contract?”
• "Why isn’t this my vehicle any longer?”
• “Who is responsible for this?”
• “What happens if I do not bring the vehicle back?”

You need to contact an attorney immediately to discuss you rights and legal options.

Thank you, I have to admit I am a lil freaked using the car (because it's not officially mine now like I thought) I already changed my insurance plan and made a payment, I know that my license plate is going to be in the mail any day now. What can they do and when it comes down to pay in two weeks who do I send the payment to? To my understanding via the dealership the bank they originally had me in returned the contract back to the dealer. To me it's all a moral thing.. my argument was constantly..."from the time I left the lot to now. WHAT HAPPENED? why did it take you guys so long to finalize this... and why would you just sell my car out right without a final deal?" I'd much rather have my car than the piddly lil money you are trying to offer me on the trade. I even called the bank that my deal was suppose to be with and the guy felt for me and said it is wrong and they need to find you financing or give you your car back but it just can't be thru us....SOOO FRUSTRATED
oh .. and P.S. nothing has been in writing up until a few hours ago when I wrote the Finance manager via email I like to document things... still no response.. and via my Google search I read that they have to write on paper that they want the car back oppose to a verbal phone call is that still valid after 15 days?

Keep your dealings with this place IN WRITING.

WRITE them a letter (send it certified, return receipt requested) telling them that your payment is due on XXX date, and where are you supposed to send it?

This happened to a friend of mine. The dealership ended up having to carry the paper. They waited until she was late on ONE payment and repoed the car - do make your payments ON TIME.

BTW , If anyone reads this. Always sell your Auto privately .You'll get more out of it and you won't have to worry when your newer auto deal falls through .Keep the old one for a while before selling .Just in case .

Well I tried the whole writing thing with my email too late in the day to get to the post office and they called me of course opposed to writing and said "I got your email, and have good news, WE HAVE YOUR CAR" I guess they bought it back from salvage or whatever was that a cheaper choice for them opposed to just doing the right thing? Whatever ( I guess) so now they will give me back my money and my car.... this has been too much drama for me.
I'd much rather take my car and go elsewhere...
Thank you for your advice...

cryssb said:

Well I tried the whole writing thing with my email too late in the day to get to the post office and they called me of course opposed to writing and said "I got your email, and have good news, WE HAVE YOUR CAR" I guess they bought it back from salvage or whatever was that a cheaper choice for them opposed to just doing the right thing? Whatever ( I guess) so now they will give me back my money and my car.... this has been too much drama for me.
I'd much rather take my car and go elsewhere...
Thank you for your advice...

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Of course they "found" your trade-in - since they had planned on having you come back and re-finance at a higher rate, they used your "lost" trade-in as a ruse to make you think you had no other choice. I highly doubt it was EVER gone in the first place.

And I am now confused... If the dealer was unsuccessful with financing, then how is that you even have payment coupons or a place to send and receive your payments??? This just reinforces what I said before - they were trying to jack up the financing and price to make a higher profit.

Think very carefully about what you want to do next. Effectively, I believe that the dealership HAS to honor the contract now, just as it is. If you want to keep the new car, that is an option for you instead of returning it, getting back the down payment and your trade-in. I think that because you have made a payment, you have now ratified the contract with the original terms. DO NOT LET THEM TRICK YOU INTO SIGNING A NEW CONTRACT.

If you DO decide to just return the car, be sure to get EVERYTHING IN WRITING! Double check that they are returning ALL your money, and that your trade-in is in the same vehicle and in the same condition as it was when you turned it in to them. DO NOT LEAVE WITHOUT OBTAINING COPIES OF ALL SIGNED DOCUMENTS!

And get your trade in looked at by a certified mechanic IMMEDIATELY... preferably as the first stop after you drive it off the dealer's lot.

Yours would not be the first car scavenged for parts....like the air bags.

cyjeff said:

And get your trade in looked at by a certified mechanic IMMEDIATELY... preferably as the first stop after you drive it off the dealer's lot.

Yours would not be the first car scavenged for parts....like the air bags.

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Heck, I wouldn't even drive it off the lot. Bring a certified INDEPENDENT mechanic with you and have them inspect it before you drive it away.

cryssb said:

Well I tried the whole writing thing with my email too late in the day to get to the post office and they called me of course opposed to writing and said "I got your email, and have good news, WE HAVE YOUR CAR" I guess they bought it back from salvage or whatever was that a cheaper choice for them opposed to just doing the right thing? Whatever ( I guess) so now they will give me back my money and my car.... this has been too much drama for me.
I'd much rather take my car and go elsewhere...
Thank you for your advice...

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Be sure they REALLY have YOUR car there, and undamaged. Drive in the "new" car to a friend's house. Park the "new" car in his garage. Have your friend drive you to the dealership. Verify that your car is really there, have keys, it will start, etc. If so, have your friend drive home and come back with your "new" car while you wait right there. Then trade.