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Can a auto dealer in Colorado cancel a trade in 4 days later after a agreement?

Denver, CO |

I traded a vehicle for a new one. All documents have been signed and my down payment has been cashed. 4 days later I get a call from the dealer saying the carfax shows a accident and total loss. The trade has a clean title and the car was inspected at the time of trade. The dealer wants me to return the new vehicle can this be done?

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Filed under: Car loan
Attorney answers 3


It depends on your agreements. I imagine that they have a clause in those documents that speaks exactly to this issue and allows them a right to rescind the transaction.

So review all the documents, contact the auto dealer so they can state explicitly the contractual basis for this demand, and then, maybe, speak with an attorney.

This answer is for informational purposes only and is not legal advice regarding your question and does not establish an attorney-client relationship.


Did you make any assertions as to accident history of the car ? Did you complete a form declaring your knowledge about the history ? If the accident happened while you owned the car, and you made assertions that it had a clean history, it is more likely that they can come after you and returning the car will likely be the best solution. Plus consider what you signed as the prior answer provided, since it will likely control many of the other scenarios.

Our replies to Avvo questions should not be considered specific legal advice to any individual. Our aim is to provide general principles that may be useful to the Avvo community as a whole. You should seek individual legal advice pertaining to your specific factual situation, and the laws applicable to your jurisdiction.


Mr. Murillo is directly on point. The contractual agreements that you sign will have provisions exactly about this issue. The auto dealer is probably stating that you either made a material misrepresentation about the car that you were trading in or failed in "good faith" to make a disclosure of the prior accident and it being considered a total loss. The paperwork should let you know if the inspection that they conducted waived their right to object at a later date. Good luck

The information provided in this answer does not create an attorney-client relationship. If you are interested in his legal services, feel free to call Chris at (303) 409-7635 at his law office in the Denver Tech Center. All initial consultations are free of charge.