San Diego, CA asked in Contracts for California

Q: Car dealership is threating to cancel our signed contract if I don't give them an additional 2000.00 dollars.

The dealership said they gave me to much for my trade in and they wanted an additional 2000.00. I financed the vehicle through my bank and the dealership is refusing to accept the funding transfer. The dealership said to give them 2000.00 dollars or return the car. The dealership said they were going to report the car stolen if I do not return it. My fault for not checking, but the dealership has an "F" rating with BBB. Any advice would help.

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: Your situation is concerning, but you have strong legal protections here - once you signed the contract and the dealership accepted it, they cannot unilaterally change the terms or demand more money after the fact.

Their threats about reporting the car stolen are baseless since you have legal possession through valid contract. Document everything - save all communications, take screenshots of texts/emails, and write down detailed notes about any phone conversations or in-person interactions with dates and names. You should file complaints with both the California Department of Motor Vehicles and the Attorney General's office, as this appears to be predatory business practice.

If they continue threatening you, consider sending them formal notice via certified mail stating that you have fulfilled your contractual obligations and demand they accept the bank funding as agreed. While small claims court is an option, you may want to reach out to consumer protection attorneys who handle auto dealer fraud cases - many offer free consultations and can advise on next steps. Stay firm but professional in all communications, as you have the law on your side in this situation.

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