That scam is pretty common around Houston and they almost always have an Arbitration clause in the documents. You can always go down to Justice of the Peace Court and file it yourself... ask for a Jury. Filing is about $50 if you send the lawsuit over by certified mail instead of Sheriff's service of process. See if there is a student run clinic at the Baylor Law School maybe they could help you for free! Good luck. Also, they will say everything is AS-IS, but get on the internet and look up the Texas Deceptive Trade Practices Act. One case that had good facts and documents we did showed the same car was resold 4 times in one year by the same shady dealer, each time on 4 year financing. Clearly, he knew it was worthless.
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Of course you can sue them. You can also lose. You are surprised that a car with 200,000 miles on it has mechanical problems 4 months after you buy it? I don't think a court will be. I have had clients whose car breaks on them on the way home from the car lot! A court will not be impressed either if you tell them that you have been driving it for 4 months without a valid driver's license.
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