Legal Question in Consumer Law in Florida

Auto Financing/returning vehicle

To make a long story short, my friend purchased a vehicle and got it financed. They put a $2000 down payment on the vehicle and traded in their used vehicle for $7000. The dealer found financing and my friends thought that everything was approved and they received a call from the Finance Dept. saying that the finance company wants another $1500. I told my friend to return the vehicle because it is way above their budget and the extra $1500 goes against what was originally put into the contract and should allow for them to return the vehicle. The only out in the contract that I can see is the clause that states the following: If not approved, neither the finance terms nor the Purchase Agreement shall be binding on the DEALER.

I also need to know if the next clause applies to this situation or if it can be ignored: The Dealer shall have the right, upon failure or refusal of the Purchaser to accept delivery of the motor vehicle purchased hereunder and to comply with the terms herof, to retain any cash down payment made by Purchaser as liquidated damages and, in the event a motor vehicle has been traded in as part of the consideration for the motor vehicle purchased, to sell such motor vehicle and reimburse itself out of the proceeds


Asked on 3/19/08, 2:44 am

1 Answer from Attorneys
Alan Wagner Wagner, McLaughlin & Whittemore P.A.

Re: Auto Financing/returning vehicle

Ouch -- that seems to say that if there is no financing, the dealer can get out of the deal and, by implication, that the buyer can not. The next sentance says that if you return the car, they keep the downpayment and the trade in.

If they won't budge and allow a return, you may be better off keeping the car and selling it yourself. The lesson, of course, is not to take the car or give up yours until the agreements (including financing) are FINAL and all signed. If you do so, the dealership pushes the financing to finish because they do not want you walking off the lot and changing your mind. Always have an "out" in the contract in case things do not go as planned.

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Answered on 3/19/08, 8:49 am


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