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10 day letter received to return car,but dealer calleds and saids not to return it

San Jose, CA |

I purchase a used car on 12/07/2012 from dealership but today 12/15/2012 i received a called from the dealership saying that I will get a 10 day letter in the mail that saids i have to return the car but they told me not to return it. Since they recently change owners "supposly" it has taken them more time to summit all the paperwork for the finance of the car and it we ready by the 12/19/2015. I don't know if this is true I'm aware that if I return within the 10 days of letter received I will received my money back as the contract will be cancel. But since dealer saids not to returned and the 10dayperiod will pass i worry that if the dealer doesnt get approved for my finance of the car i won't be able to cancel contract and be force todo another contract with a higher rate what should ido

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Filed under: Credit Fraud Used cars
Attorney answers 2


Sounds like Dealer is trying to unlawfully persuade you to sign a 2nd contract, since they've been unable to assign the 1st. If dealer is cancelling the 1st contract, it has to give you all your money back. It cannot force you to enter into a 2nd contract, despite it potentially suggesting that you have to. Best thing to do is confirm -- in writing -- that contract 1 is being cancelled and confirm -- in writing -- that dealer is refunding all of your money (including returning your trade-in to you, if any, OR, if it sold your trade-in, then refunding the greater of: (a) the value they gave you for it as stated on the contract OR the trade-in's fair market value).

You can bet that whatever dealer told you re: "has taken them more time to summit all the paperwork for the finance of the car and it we ready by the 12/19/2015" is untrue and an effort to trick you into signing a 2nd contract with less favorable terms.

Best thing to do is go through with the cancellation, but just make sure dealer doesn't withhold any of the consideration that you have into the deal. If you'd like to discuss this more, feel free to call me Monday morning. 510-981-0867.

DISCLAIMER: This reponse is for informational purposes only and cannot be treated as legal advice. Legal advice depends on the specific facts of the particular matter at issue. Accordingly, you should not rely on or act on any information provided herein without consulting with legal counsel that is licensed to practice law in your jurisdiction. This response does not create an attorney-client relationship between you and the Law Office of Arthur J. Obolsky.



Thank you for your responses. I have more questions if you can answer them I will really appreciated, I tryed calling your office but no one answer. I just want to know if its true that by law the dealership has to send the recind letter because they haven't finalize the contract by the 10 day, thats what the dealer told me they were sending me the letter but that by wednesday they will get the loan. I also want to know if I don't return the vehicle and wait to see if true that they will get the loan will I get any charges for not returning it and since they are telling not to return it? Also once you get the recindition letter from seller canceling contract they can no longer try to get the loan because they send me the letter because supposly they still working on it even thought I received the letter. and If by wednesday they tell me that they couldn't find me a lender for the finance of the car and they tell me they want to do another deal can just return the car and received my down payment back, and keeping the car a few days won't affect me in canceling the contract. and do I have to pay any charges for the days that I had it?

Arthur Joseph Obolsky

Arthur Joseph Obolsky


Call me to discuss further 510-981-0867


The dealer is playing games with you. Dealer has you in the middle of the old "Yo-Yo" scam, which is being used more and more these days.

Dealer cannot have it both ways. Also note, you ARE financed already. Dealer sold you a car on credit and agreed to finance you. What Dealer (allegedly) has not found is someone who will buy that very contract from them on the same credit terms they've agreed to sell the vehicle to you.

If you give my San Jose office a call I can give you some direction at no cost to you, depending on what you want to do. Have you received even one notice in the mail (from dealer or some finance company) stating your credit application has been turned down? If not, that alone is a violation of the law.

Call Mr. Obolsky (a fine attorney) in Berkeley or get in touch with my office locally on Monday for further guidance.

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