Tuesday, July 12, 2011
I traded in a car and the dealer sold my trade-in and then demanded the car back?
I have a friend who traded in her car (a Ford van, $2500 trade-in value) for a newer Pontiac van ($15,000 value), with no additional cash down beyond the trade in value. The contract was written so that if she (the purchaser) could not "obtain financing", the dealership could demand the return of the Pontiac. The contract also specified that the dealership would maintain its own insurance on the Pontiac until financing was secured. My friend drove the Pontiac for about 2 months, during which time her Ford van was sold for an undisclosed amount. At the end of the 2 months +/-, the dealership called her and said that they were unable to obtain financing for her and demanded the return of the Pontiac. When she went back to the dealership, she maintained that the loan paperwork listed the dealership as providing financing (and it does). But the dealer demanded the Pontiac back and sold her a clunker in a straight trade for the $2500 trade-in of the Ford. They took the Pontiac and sold it as well. She wants her Ford van back, but doesn't know what to do. Is there any basis for her suing the dealership to for damages over either the sale of the Ford or over the demand back for the Pontiac when the dealership had a) listed itself as the financing organization and b) demanding the Pontiac back after they had sold her trade-in?
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