Legal Question in Consumer Law in Oregon

Under Oregon law the dealer must provide financing on the exact terms you agreed to, within 14 days of you taking the car, or you can then return the car and get back all your money, except maybe a small charge for mileage.

But the dealer gets 14 days in order to provide the financing.

A verbal agreement is worth the paper it is not printed on.

The web site of the Oregon Attorney General says:

"In Oregon, you can take a new or used car home before financing is approved. This practice is called "spot delivery"� and is designed to lock you into a purchase. There is no 3-day right of rescission� for a car purchase or lease, even if you do not yet have final approval of financing. However, if you cannot get financed at the exact same terms as those for which you signed an agreement with the dealer, you must bring the car back to the dealer and the dealer must give you back your trade-in vehicle and down payment. If the dealer cannot proceed on the original terms you agreed upon, you have an absolute right to walk away from the deal. The dealer may charge you for wear and tear and mileage. You may re-negotiate the deal with the dealer, but at this point in time, you also have the option of walking away and looking at a different vehicle or going to a different dealer. See ORS 646.877."

Too bad the Oregon Attorney General cites to the wrong statute. The renumbered statute is ORS 646a.090, which also prohibits the dealer from selling the car you traded in until it has provided financing on your new car. If you cancel the deal, they have to give you back your old car The statute states:

646A.090 Offer to sell or lease motor vehicle subject to future acceptance by lender; disposition of trade-in vehicle and items of value; liability. (1) As used in this section:

(a) �Buyer� means the purchaser or lessee of a motor vehicle.

(b) �Final approval of funding� means a lender�s irrevocable agreement to finance a sale or lease of a motor vehicle according to the exact terms that the seller and buyer have negotiated.

(c) �Lender� means any person that finances a sale or lease of a motor vehicle.

(d) �Motor vehicle� means a motor vehicle, as defined in ORS 801.360, that is sold or leased in this state for personal, family or household purposes.

(e) �Seller� means a holder of a current, valid vehicle dealer certificate issued under ORS 822.020 or renewed under ORS 822.040.

(2) A seller may make an offer to sell or lease a motor vehicle to a buyer or prospective buyer that is subject to future acceptance by a lender that may finance the transaction at the request of the seller.

(3) In any transaction described in subsection (2) of this section:

(a) If a lender does not agree to finance the transaction on the exact terms negotiated between the seller and the buyer within 14 days after the date on which the buyer takes possession of the motor vehicle and the seller has not received final approval of funding from the lender, the seller shall return to the buyer all items of value received from the buyer as part of the transaction; and

(b) If the seller has accepted a trade-in motor vehicle from the buyer or prospective buyer, the seller shall not sell or lease the buyer�s or prospective buyer�s trade-in motor vehicle before the seller has received final approval of funding from the lender.

(4) In any transaction described in subsection (2) of this section, if the buyer has accepted a motor vehicle from the seller, and a lender does not agree to finance the transaction on the exact terms negotiated between the seller and the buyer, the buyer shall return to the seller all items of value received from the seller as part of the transaction. The offer or contract to sell or lease the motor vehicle may provide in writing that the buyer is liable to the seller for:

(a) The fair market value of damage to, excessive wear and tear on or loss of the motor vehicle occurring between the date the buyer takes possession of the motor vehicle and the date the buyer returns the motor vehicle to the seller�s custody; and

(b) If, within 14 days of the date the buyer takes possession of the motor vehicle, the seller sends notice to the buyer by first class mail that financing is unavailable, a reasonable charge per mile for the use of the motor vehicle. If the buyer returns the motor vehicle within five days of the mailing of the notice, the seller may charge the buyer for miles driven during the first 14 days that the buyer had possession of the motor vehicle. If the buyer does not return the vehicle within five days of the mailing of the notice, the seller may charge the buyer for all miles driven while the buyer has possession of the motor vehicle. The charge may not exceed the rate per mile allowed under federal law as a deduction for federal income tax purposes for an ordinary and necessary business expense.

(5) It is an affirmative defense to a claim or charge of violating subsection (3)(a) of this section that the buyer failed to return the motor vehicle after the seller sent notice to the buyer by first class mail that financing was unavailable. [Formerly 646.877]