What will happen regarding the termination a motor vehicle installment sales contract?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What will happen regarding the termination a motor vehicle installment sales contract?

I signed a motor vehicle retail installment sales contract couple of weeks

ago. I made a down payment of $5000 as it stated in the contract. Now I

want to terminate this contract and return the motor vehicle. Can I take

back my down payment, at least part of it?

Asked on November 4, 2018 under Business Law, Illinois


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

No, you may not. Once you sign the contract, your are obligated for the full amount. There is no legal right to cancel early or return the vehicle. The dealership (or whomever sold you the vehicle) is under no obligation to take it back; they can refuse your attempted return of the vehicle and hold you to the contract. Even if they choose to take the truck back--which would be voluntary on their part, since they don't have to do that--they would then sell the vehicle at auction and apply whatever they receive they receive to the full purchase price and hold you liable for the rest. Example: you purchased the vehicle for $30k (full purchase price you agreed to pay). They agree to take it back and sell it for $20k (combination of depreciation and things always sell for less at such auctions, because whomever buys it bids a low-enough amount they can sell it for more and make a profit). That $20k, plus the $5k you already paid, is $25k. A $30k purcahse price less $25k in total proceeds, leave another $5k; in this example, you'd owe them another $5,000.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption