Legal Question in Consumer Law in California

Car scam

I recently inquired on line to be approved for a car loan. I was denied on line and then contacted by a dealership in San Jose. I told him I was denied and he said he could guarantee approval. My fiancee went into the dealership and purchased a car. We put down $300 on the spot and $700 within 3 weeks. We were required to put insurance on the car within 10 days, which I did. Today (exactly one month later) they called us and said we must return the car because they couldn't find anyone to finance us. They have said they will return the down payment. Is it legal to let someone drive off the lot without having a guaranteed approval? We have let our other automobile go since we had the new one and are now going to be stuck with one car unless we come up with $4000. Any advice?


Asked on 8/05/03, 1:11 pm

1 Answer from Attorneys
Alvin Tenner Law Office of Alvin G. Tenner

Re: Car scam

Dealers can and do allow customers to drive off the lot without approval. However, if loan denied, you must return car and they must pay back all that you have paid. You are not liable for any mileage or use fees. Since 30 days elapsed from the time of sale until notification, you probably can keep the car under the terms of the contract. Dealers must obtain approval within 10 days.

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Answered on 8/05/03, 3:43 pm


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