Legal Question in Consumer Law in New York

down payment for used car

A friend of mine went to a car dealership put a $5000 down payment on a used car. Approval of her car loan is still pending. This has been going on for 3 weeks now. She since has decided not to purchase the car. The auto dealer will not refund her money stating that she signed a contract. How can she get her money back. Her car loan still has not been approved

The money is coming from a lender company. Is she bound to this contract? They say that she is. Can you tell me what her rights are. The dealer says that they do not have to refund her her money. Is this true?


Asked on 3/05/09, 10:08 pm

1 Answer from Attorneys
Andrew M. Doktofsky Andrew M. Doktofsky, P.C.

Re: down payment for used car

This appears to be what is known as a "yo-yo" sale, where the dealer is trying to change the terms of the contract after the transaction is complete. Often the reason is that the dealer was unable to obtain financing at the promised rate. If this is the case, and the dealer is not performing under the contract, then your friend would be entitled to return of the downpayment. If your friend has possessionn of the car and the dealer threatens to repossess it, there may be additional violations of law. Please contact my office directly to discuss your situation further.

Read more
Answered on 3/06/09, 9:40 am


Related Questions & Answers

More Consumer Law questions and answers in New York