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Asked: Jul 31, 2008 - 06:57 PM

Status: Closed

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buddys1

I bought a car on a Saturday two weeks ago, no money down or co-signer. Dealer requesed car back or a co-signer two weeks later?

I got a car, on a saturday 2 weeks ago, recieve a letter that the dealer is rescind the contract due to financial institions using "Rescission Rights" & have to return the car. Unless I can get a Co-signer. At the time I signed the contract they knew I had no $ down or co-sign. People are telling me that this is a form of switch & bait, I like other thoughts
Thank you

In Buying & Selling > Car Financing
4 answers - 397 days ago

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simpilot1

Date: Aug 01, 2008
Time: 04:58 AM

Dealer recission rights are a standard clause in dealer assisited financing auto sales contracts. The dealer has the right to take the car back if he is unable to obtain financing for you. It is not illegal and doesn't have anything to do with bait and switch. You signed the contract giving him the right to take the car back. Without seeing the contract I can't say more.

The contracts have a time limit on exercising the recission rights, usually 10-14 days. If he takes the car back after this time he is in breach of contract and you have the right to sue. If he is within the window just give the car back and you should be able to get any money you gave him back. What you get back should also be spelled out in the contract.

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bandit10

Date: Jul 31, 2008
Time: 11:15 PM

Contact the Better Business Bureau in your area, and if you need to go in, bring all your purchase papers, and the letter from the dealer. You'll know exactly where you stand.

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simpilot1

Date: Aug 01, 2008
Time: 04:58 AM

Dealer recission rights are a standard clause in dealer assisited financing auto sales contracts. The dealer has the right to take the car back if he is unable to obtain financing for you. It is not illegal and doesn't have anything to do with bait and switch. You signed the contract giving him the right to take the car back. Without seeing the contract I can't say more.

The contracts have a time limit on exercising the recission rights, usually 10-14 days. If he takes the car back after this time he is in breach of contract and you have the right to sue. If he is within the window just give the car back and you should be able to get any money you gave him back. What you get back should also be spelled out in the contract.

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legallyblond

Date: Sep 02, 2008
Time: 10:53 PM

Just FYI...even if they wanted to exercise the Right of Rescission, it is only a 3-day ROR, NOT 2-week ROR...I would say that if your timeline is accurate, they are SOL. Check your contract/loan papers...if you signed them, they signed them...check for the amount of time is referenced as ROR...THEY, as well as you, have to adhere to the terms whether they like it or not...sounds like could be as you said "bait & switch" preying on the un-educated borrower...hope this helps

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dave1957

Date: Oct 24, 2008
Time: 02:40 PM

dealers nor sales staff benefit when a client is directed by the lending institution to return a vehicle that has been delivered. a dealer frequently will send a buyer home in the vehicle until financing is secured. when the lending institution gives the dealership the stipulations to the sale, the dealer informs the buyer that the lender did not accept the contract that the dealer had submitted. at that point, some potential buyers may be of the opinion that there was a "switch and bait" situation. as a sales professional, i am just as disappointed as you seem to be when this situation happens.

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