Legal Question in Consumer Law in California

My girlfriend and I bought a certified used vehicle on the 8th of this month at a Honda dealer in CA. We were both first time buyers with great credit at 711(my girlfriend) and no credit(me). We ended up financing through the dealer that promised 3.9% for 60 months.

It has been exactly ten days since the contract was signed. Today my girlfriend received the mail and it was from the dealership that we purchased the vehicle from. Titled, "Notice of Election to Rescind," it goes on to state that the dealership has the right to elect to rescind the transaction. It is requested that we contact the dealership's finance department ASAP as to protect both parties' interest in the vehicle.

The scenario sounded eerily familiar to a particular sort of fraud that I was reading about while preparing for my first car purchase. The dealer agrees to great financing at the time of purchase only to rescind the offer within weeks to get you to refinance.

I have since spoken to the finance manager and he says the loan was not approved and I need to return the vehicle or refinance.

In returning the car I would like to

a) immediately get my down-payment of $1500 back upon return of the vehicle.

b) not be charged for any fees for driving the car during my brief ownership and returning it.

I have read that they are within my rights. Is this true?


Asked on 12/19/10, 12:23 am

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

I would have to see the contract to know what either side is entitled to. Usually the standard procedure in such matters is that you return the vehicle without charge and get all of your money back. Ask the dealer if that is how they will handle it; then confirm by e-mail before bring car back.

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Answered on 12/25/10, 12:02 am


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