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Can I cancel a car purchase after signing a contract if they haven't finaced it after two months and they paid off my trade?

Moriarty, NM |

I was told I was approved for a vehicle so I signed the contract and they said it was a done deal. About two weeks later they called and said I needed to go in and sign a new contract. They had found me a better interest. So I did. It has been a month since the new contract has been signed, and I haven't recieved any information from the financial institution. I called the dealer and he said it fell through. I proceeded to call and make a payment on the vehicle I traded in so I would not mess up my credit. They informed me the car has been paid in full. Now the dealership says they want me to come up with more money than I have already put down and sign another contract. The whole process so far has been about two months. Do I have to resign? What are my rights?

Attorney Answers 1


You don't have to sign a new contract if you don't want to. Look at the contract you have - most of the time car deals written so that you are buying the car "contingent on financing," which means that if the financing falls through, you aren't required to buy their car. However, in the meantime, it sounds like they have bought your trade in, and they may owe you for that (assuming it was worth more than the loan balance).

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