I found nothing in the contract relating to the trade in other than the agreed upon price. Thinking out loud here - I'll be they could screw around with paying off the previous loan. We'll see...
No, the condition of the trade in was not specified. We were very clear it wasn't drivable. They did not choose to inspect it. I agree with your position - it's their car now. They are expecting a payment after they determine the difference from what they are offered for it from a wholesaler.
Had a vehicle that quit running. Took it to a shop and was told that the coils were bad. While they could be replaced it wouldn't run right and best to replace the engine.
Went to a dealer, couldn't drive the vehicle there and explained to them what the garage had told us. After some back and...