Wednesday, December 22, 2021

What Happens After The Car Dealership Cancels A Contract?

One of the questions that car buyers ask when they sign a deal with a car dealership is ‘Can a car dealer cancel a contract?’

When you buy a car financed by a dealership, the dealer can cancel the contract at his discretion for reasons listed in the contract. However, they have to notify the buyer within ten days of the contract signing date.

This blog looks at what happens once the dealer has lawfully rescinded the contract from their end.

What Should You Expect Once The Dealer cancels the Contract?

Once the dealership has formally canceled the contract, you return the car to the dealer, and the dealer gives back any down payment you made. If you had provided any trade-in vehicle as part of the deal, the dealer also needs to return that.

However, sometimes dealers do not return the down payment amount or the traded-in vehicle. The dealers might misguide you about your rights and tell you that you need to sign a new contract with them or that the down payment is non-refundable. 

You need to remember that you are not required to sign any new contract if the dealer cancels the contract. Further, if the dealer refuses to return the down payment or trade-in, they are breaking the law.

To conclude, canceling a car dealership agreement is at the discretion of the auto dealer. However, refusing to return the down payment or any trade-in vehicle is fraud. If you feel you are a victim of auto-fraud, the attorneys at Allen Stewart could assist you.

To know more about Can i return a Car to the Dealership please visit our website: allenstewart.com

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