Rescinding Car Sales Contract

[studentmom]

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

I bought an electric car last week (on 4/4) from a dealership here in CA. I financed a 0% loan through the dealership and put no money down. I have put approximately 300 miles on the car, but have had some buyers remorse due to the poor highway mile range, difficulty of locating EV fast charger stations when out, wiring my house for a 240 outlet, etc. Basically, electric car ownership is a bigger pain than I realized!

I know there is no way to just return a car after purchasing it under normal circumstances, but I believe I may have just gotten lucky. A few minutes ago, I received a call from the sales manager at the dealership who drew up our sales contract. He says that my contract is being held up in the financial department and they won't issue me a loan because I was overcharged $1.50 for tires! He acknowledged that this was absurd but basically begged me to come back down to sign a new contract.

Could this be my way out? Instead of signing the new contract, can I simply return the car instead and rescind purchasing it all together and refuse to sign a new contract? Are there any risks to me in doing this? Again, I haven't paid a penny yet.

Thank you!

 

[Zigner]

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

I bought an electric car last week (on 4/4) from a dealership here in CA. I financed a 0% loan through the dealership and put no money down. I have put approximately 300 miles on the car, but have had some buyers remorse due to the poor highway mile range, difficulty of locating EV fast charger stations when out, wiring my house for a 240 outlet, etc. Basically, electric car ownership is a bigger pain than I realized!

I know there is no way to just return a car after purchasing it under normal circumstances, but I believe I may have just gotten lucky. A few minutes ago, I received a call from the sales manager at the dealership who drew up our sales contract. He says that my contract is being held up in the financial department and they won't issue me a loan because I was overcharged $1.50 for tires! He acknowledged that this was absurd but basically begged me to come back down to sign a new contract.

Could this be my way out? Instead of signing the new contract, can I simply return the car instead and rescind purchasing it all together and refuse to sign a new contract? Are there any risks to me in doing this? Again, I haven't paid a penny yet.

Thank you!

You bought a car...it's your car. Work out the financing, or go in with your own.

 

[adjusterjack]

I know there is no way to just return a car after purchasing it under normal circumstances, but I believe I may have just gotten lucky. A few minutes ago, I received a call from the sales manager at the dealership who drew up our sales contract. He says that my contract is being held up in the financial department and they won't issue me a loan because I was overcharged $1.50 for tires! He acknowledged that this was absurd but basically begged me to come back down to sign a new contract.

Could this be my way out? Instead of signing the new contract, can I simply return the car instead and rescind purchasing it all together and refuse to sign a new contract? Are there any risks to me in doing this? Again, I haven't paid a penny yet.

Here's the risk. Returning the car under the existing contract is a repo that comes with consequences.

Say no to signing a new contract and I'm guessing that the dealer will figure out a way to get the loan approved.

 

[studentmom]

Here's the risk. Returning the car under the existing contract is a repo that comes with consequences.

Say no to signing a new contract and I'm guessing that the dealer will figure out a way to get the loan approved.

I already asked the dealer if I had the option not to sign a new contract and just eat the $1.50. He said the finance department told him no.

 

[studentmom]

Here's the risk. Returning the car under the existing contract is a repo that comes with consequences.

Say no to signing a new contract and I'm guessing that the dealer will figure out a way to get the loan approved.

And I am confused. How would that be a reposession if there is no contract binding me, the car has been returned, and I am not late on any payments? How could they hold anything against me or my credit?

Thanks for your reply, btw 😁

 

[studentmom]

Just found this and now I am worried what I am hearing from the dealership could be a variation of this scheme.

http://www.calemons.com/beware-of-the-yo-yo-car-deal/

 

[xylene]

offer to pay 500 dollars to return the car instead of a new contract.

 

[Zigner]

And I am confused. How would that be a reposession if there is no contract binding me, the car has been returned, and I am not late on any payments? How could they hold anything against me or my credit?

Thanks for your reply, btw 😁

You have a signed contract. You are required to make payments per that contract. If you don't, then you can end up in court over this. Simply dropping off the car with them doesn't solve this.

 

[studentmom]

You have a signed contract. You are required to make payments per that contract. If you don't, then you can end up in court over this. Simply dropping off the car with them doesn't solve this.

Thanks for the obvious. Did you read what I wrote? They called me wanting me to sign a new contract with new terms. They are bound by their end of the contract, too.

 

[studentmom]

offer to pay 500 dollars to return the car instead of a new contract.

Lol! Not a bad idea!

 

[Zigner]

Thanks for the obvious. Did you read what I wrote? They called me wanting me to sign a new contract with new terms. They are bound by their end of the contract, too.

If you DON'T sign, what do you think happens

It won't help to get snippy with the volunteers on this site. We're just here trying to help you.

 

[TimStudiesLaw]

And I am confused. How would that be a reposession if there is no contract binding me, the car has been returned, and I am not late on any payments? How could they hold anything against me or my credit?

The Retail Installment Contract you signed is between you and the dealership. You owe the dealership until they assign the contract to a lender. If the lender won't fund it the way its written, you owe the payments to the dealership for the term of the contract. If you return the car, it's a voluntary repo with the dealership as the creditor.