By Law Office of Paul Mankin of Law Office of Paul Mankin posted in Consumer Protection on Thursday, June 22, 2017.
If your auto dealer calls you within the 10-day period after signing the vehicle sales contract, the dealer has most likely lawfully cancelled/rescinded your automobile sales contract. What should happen and what does happen is often very different. What should happen is you give back the car, and the dealer gives you back any down payment and/or trade-in vehicle that you provided at the time of the sale. Basically, when you return the car, you should be given back everything you gave the dealer.
Most of the time the auto dealer does not want to give you back your down payment or the vehicle you traded-in. The dealer wants to try and make more money from the vehicle it already tried to sell you. The dealer will most likely first try to have you sign a new contract. This new contract might have a higher interest rate, require a higher down payment, or require a co-signer. These are all ways the dealer can increase its profit on the sale.
But, if the dealer cancels/rescinds the contract within 10 days, it is your choice whether or not to sign the new contract. If that is what you want to do to keep the car, you can sign the new contract and hopefully, this time the sale will be complete. But, if you do not want to sign the contract and you want all the money back that you gave the dealer and/or your trade in vehicle, the dealer must provide them back to you.
Many times dealers will not be honest with a consumer about their rights in this situation. A consumer might hear from a dealer that the consumer must sign a second contract, that the consumer will not be refunded the down payment, or that the trade-in vehicle has already been sold. These are all ways for the dealer to force you into signing the new contract. Remember you are not required to sign a new contract, and if the dealer refuses to give you back the down payment and/or trade-in, the dealer is breaking the law.
If you believe you have been a victim of auto fraud or yo-yo fraud, feel free to give us a call at 1-800-219-3577 to evaluate your situation.