Legal Question in Consumer Law in California

Contract question on new car purchase

I bought a new 2000 car at a Dealer, paid $4000 down, signed a contract for a certain interest rate, certain price ($27,000)and drove the car home. Two WEEKS later the dealer called and said the financing rate was wrong and that the interest would two points higher and that I need to sign a new contract. Do I have to sign the new contract, or is the original contract binding on BOTH parties? He says I need to sign an new contract at the higher rate... about $30 per month higher payment or pay him $1800 more downpayment. Should I see a lawyer or just pay the extra??? Thanks in advance.


Asked on 9/28/00, 9:34 pm

2 Answers from Attorneys

Re: Contract question on new car purchase

This appears to be a scam that certain unethical auto dealers are doing. If the rate on the contract is the rate that you agreed upon at the time, the attempt to change it after the fact is merely a scam.

However, if the agreement and original interest rate were based upon credit to be obtained, then you have a different story.

You can call or e-mail to discuss.

[email protected]

www.donnerlaw.com

805-494-6557

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Answered on 10/28/00, 2:13 am
Howard Silver Law Offices Of Howard D. Silver

Re: Contract question on new car purchase

IN RESPONSE TO YOUR QUESTION, YOU DO NOT HAVE TO ACCEPT THE NEW RATE IF YOU HAVE AN AGREEMENT WITH A DIFFERENT RATE. IF THE DEALER INSISTS, YOU CAN SIMPLY WALK AWAY FROM THE DEAL. IF YOU WISH TO DISCUSS THIS FURTHER PLEASE CALL OR EMAIL AT YOUR CONVENIENCE. THANK YOU, HOWARD SILVER

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Answered on 10/28/00, 12:11 pm


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