Modesto, CA asked in Contracts and Consumer Law for California

Q: If a car dealer sells a car he knows or should reasonably known the person can’t pay for be sued for the down payment

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: I apologize, but the wording of your question is a bit unclear. I believe you are asking whether, under California law, a car dealer can be sued for the down payment if they sell a car to a person who they know or should reasonably know cannot afford to pay for it. Let me clarify this for you.

In California, there are laws in place to protect consumers from predatory lending practices, including in the context of auto sales. The California Vehicle Code and the California Civil Code contain provisions that regulate the conduct of car dealers.

While there isn't a specific law that directly addresses your question, a car dealer could potentially be held liable under certain circumstances:

1. If the dealer engages in fraud or misrepresentation to convince a buyer to purchase a car they cannot afford, the dealer might be held liable.

2. If the dealer violates the California Finance Lenders Law by extending credit to a buyer without properly assessing their ability to repay the loan, they could face legal consequences.

3. If the dealer's actions are deemed unfair or deceptive under the California Unfair Competition Law, they might be subject to legal action.

However, in general, it is the responsibility of the buyer to assess their own financial situation and ability to afford a car before making a purchase. If a buyer provides false or misleading information about their income or financial status, the dealer may not be held liable.

If a person believes they have been a victim of predatory or unlawful practices by a car dealer, they should consult with a qualified attorney who specializes in consumer protection or auto dealer fraud to evaluate their specific case and determine their legal options.

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