Dealer cancelled contract after 3 months!

[Cl5681]

Jurisdiction

California

I bought a car at norm reeves honda on December 3rd. It was during the evening hours therefore the loan banks were closed. So I signed all the paperwork and drove off in my new car. 30 days pass and no news from the dealer as to what bank would finance me. So I call in and ask for an update. The finance guy claims he's working on it. Second month goes by with still no updates. Third month comes around and that's when I hear from the finance guy stating that he couldn't find us a bank to finance a loan and needs us to return the car. Please note that I have been making payments to the dealer for the previous two months. I tell him that I like my car and I'm making payments on it so therefore I'm not returning it. He said he would escalate and repossess the car and that I would lose my down payment and all the payments made thus far. Seven days pass and the dealer repossessed the car. Can they legally do that? What are my options? Will the repo go on my credit report even after I never missed a payment?

 

[army judge]

I bought a car at norm reeves honda on December 3rd. It was during the evening hours therefore the loan banks were closed. So I signed all the paperwork and drove off in my new car. 30 days pass and no news from the dealer as to what bank would finance me. So I call in and ask for an update. The finance guy claims he's working on it. Second month goes by with still no updates. Third month comes around and that's when I hear from the finance guy stating that he couldn't find us a bank to finance a loan and needs us to return the car. Please note that I have been making payments to the dealer for the previous two months. I tell him that I like my car and I'm making payments on it so therefore I'm not returning it. He said he would escalate and repossess the car and that I would lose my down payment and all the payments made thus far. Seven days pass and the dealer repossessed the car. Can they legally do that? What are my options? Will the repo go on my credit report even after I never missed a payment?

You need to read EVERY document you signed COMPLETELY.
Buried in that monumental wall of text you'll discover the legal basis that allowed the dealer to repossess their car.

You made a very big mistake.

Yes, your credit will eventually reflect the result of the repossession.

Your options were used up when you declined to voluntarily return the dealership's car.