Castaic, CA asked in Contracts and Consumer Law for California

Q: How many days the a car dealer have to cancel a car contract after you take it home in california.

The car dealer have approved you, give you the car, took my down payment plus sold me extra protection insurance because the finance company is asking for it in order to approve me. After 12 days they send you a letter saying that they haven't found any finance and they ask for more down payment in order to pay the same monthly payment. The truck they sold me is a 2014 Tundra. Local Toyota dealer. Can you give me some peace of mind, thank you

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1 Lawyer Answer
Amanda M. Rokita
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  • Los Angeles, CA
  • Licensed in California

A: The standard CA car dealer contract has a “retail installment sales contract” provision written in the sales contract. This means that if you buy a car that is financed through the dealership, the dealer (typically) has ten days to find a financing company or bank to buy your car contract. If the dealer cannot find someone to purchase the contract, it can cancel the contract. If the dealer contacts you within ten days stating they cannot find someone to purchase your contract, you are entitled to receive the amount you paid for a down payment or trade in. If ten days has passed, the contract is final and the dealer may not demand a higher down payment or return of the car

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