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

Related Topics:
1 Lawyer Answer
James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered
  • Consumer Law Lawyer
  • Sacramento, CA
  • Licensed in California

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.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.