By Law Office of Paul Mankin of Law Office of Paul Mankin posted in Consumer Protection on Tuesday, June 20, 2017.
Unfortunately, it is all too common for the following scenario to occur: a consumer goes to an automobile dealership, finds a vehicle to purchase, signs the paperwork, provides the down payment, and drives off with the car. The consumer believes he or she just bought a car and the sale is complete, right? But, several days or weeks later the dealership calls the consumer and demands that he or she return the car.
If this has happened to you, do you have to return the car? The answer is it depends. In California automobile transactions such as this are referred to as a condition sales, spot delivery sales, or yo-yo sales. Most dealership contracts state that the dealer has 10 days from the date of the contract to rescind/cancel the contract. If the dealer contacts within that 10 day period, then the vehicle should be returned. However, if the dealer contacts you after the 10 day period, then the dealer is not entitled to cancel/rescind the contract.
Dealers often contact consumers after the 10 day period demanding that the vehicle be returned. Most of the time the dealers are very aggressive and threaten consumers with repossession, a lawsuit, negative credit reporting, etc. in an effort to harassing consumers into either bringing the vehicle back or signing a new contract. All of these tactics are illegal and there are specific and strict consumer laws protecting consumers from this type of fraud and unfair and deceptive business practices.
If a dealer is calling you demanding that you return the vehicle you just purchase feel free to give us a call at 1-800-219-3577. We will be happy to explain your rights.