Can a signed auto contract be canceled by the auto dealer after the deal is supposed to be complete?
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Can a signed auto contract be canceled by the auto dealer after the deal is supposed to be complete?
I purchased a used car at an auto dealer, after driving for 3 weeks I get a call from the salesmen saying that he was unable to get financing and now I need to return the car. I looked over the contract and there is no contingency clause. I called the sales person back and suddenly they have found someone to finance me; they still have my trade for sale but I’m uneasy about signing a new contract.
Asked on March 7, 2012 under General Practice, Tennessee
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Re-review your contract. You must have signed a spot-delivery form. If you signed a spot delivery form, that means the company can take your car back if it could not find financing for you but must give you back the car you traded in (if applicable) and / or any monies you paid as a down payment. It basically makes everyone whole and allows everyone to go back to zero. If the company has found new financing, you should review it and see if you prefer it or if you should file a complaint with the state attorney general about this transaction.
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