Downey, CA asked in Contracts and Consumer Law for California

Q: What can I do if a dealership lost my trade in?

I traded my car into a dealership back in Jan. After driving the new car for almost 3 weeks, the dealership could not find a bank to finance me. So I took the car back, the dealership did not return my other car (nor did I sign anything saying I would take it back). Now I have the bank who financed the original car calling me and asking for payments. The dealership is claiming they no longer have my car. There are more details but can't fit everything in here. This is just the cliff notes. Do I have any legal grounds to stand on?

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2 Lawyer Answers
James L. Arrasmith
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Answered
  • Consumer Law Lawyer
  • Sacramento, CA
  • Licensed in California

A: Under California law, you may have several legal avenues to explore if a dealership has lost your trade-in vehicle and is unable to return it. First, consider the issue of breach of contract. If the dealership agreed to take your car as a trade-in as part of the deal for a new car and failed to uphold their part of the agreement, especially if there was a written agreement regarding the trade-in, they could be in breach of contract.

Additionally, you could explore the possibility of fraud or misrepresentation, especially if the dealership knowingly misled you about the financing or the status of your trade-in vehicle. California's consumer protection laws, including those covering automotive sales and financing, provide for remedies in situations where consumers are misled or deceived.

It's advisable to gather all relevant documents, such as the contract for the new vehicle purchase, any communications with the dealership, and records of your trade-in agreement. Consulting with a legal professional experienced in consumer law or automotive cases can provide you with specific guidance based on the details of your situation. They can also advise you on the next steps, such as negotiating with the dealership, filing a complaint with the California Department of Consumer Affairs, or pursuing legal action to seek compensation for your losses.

Yelena Gurevich
Yelena Gurevich
Answered
  • Consumer Law Lawyer
  • Studio City, CA
  • Licensed in California

A: Yes, you have legal grounds. search and consult with a consumer protection attorney familiar with auto fraud issues.

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