Refund Down Payment on a Car

[Israel]

I purchased a used vehicle from a local used car lot and gave them $2000.00 down payment and they said that the loan was approved and I signed the contract and they gave me the key and I drove off. About 30 days latter still not plate or registration, they called and said I need to come in and redo the contract and that they needed $750 to cover for first month note (being that I had the car for 30 days). So I called the lender to see what was up. To my surprise they told me that the loan was not approved and that they had sent out a letter to the dealer on the 3rd of june which was about a week after I drove the car home. I then refused to signed the second contract with the dealer and demanded my $2000.00 down payment refunded, but they refused and had the repo man come out looking for the car. I had the car is hidden so the repo man cann't find it at least until they refund my $2000.00. Do I have the right to get my $2000.00 refunded to me? Please give me some legal advice ASAP.

Thank you

 

[tpajet]

First things first, you need to go back and read that contract CAREFULLY. Make sure that it states that the financing was a done deal. There's a used car scam that dealers will pull, and that is go ahead and drive off with the car, we are sure that we can get up this and that financing terms. So off you go, and some time later they call you back and tell you that they couldn't get the terms they thought. What they are able to offer is usually much more than the owner can afford and has to give the car back, and by this point the dealer has sold their trade in, so they are completely out.

This is going to be an up hill battle for you, but you need to be careful and fight the right way or you could really loose. You need to be careful about hiding the car. You have to remember that even though it's a shady deal, that car is still the collateral of the loan, and keeping that from them would be illegal. It's kind of like the guy that was going to end up in foreclosure on his home, so he bull dozed it to screw the bank. He wasn't laughing for long.

The best bet is to send a demand letter with a delivery confirmation, demanding the return of your deposit for the return of the car. Put in the letter that the failed to do the financing terms that were stated in the contract of the deal. Explain in the letter that if they do not return the deposit you will file suit against them. And live up to that threat.

I would also contact the state attorney general's office in your state and your local TV news.

 

[mightymoose]

I would say there is nothing wrong with hiding the car... just don't damage it, sell it, give it away, etc.
If you have already contacted them and requested a refund of your down payment in exchange for the return of the car, and if they have not responded or have refused your offer, head them off and file your own small claims suit.
There is a chance that once you do that they will strike a deal with you to avoid going to court. If you do go to court, be prepared to be ordered to pay at least a small but reasonable amount to compensate for the time that you actually did have the car.

As said above, read that contract very carefully. Just because the financing wasn't approved by the bank doesn't necessarily mean the contract is bad. However, the contract should have the total sale price, interest rate, etc. So long as you don't sign into a new contract they can only hold you to the original or take the car back.

If they get the car back without refunding your money then you are really in a jam... and yes, I too would stash it in a safe place until things get resolved.