I'm sorry to hear of your dilemma.
When a dealership arranges financing and they give you the car, they take the risk that the financing will not ultimately be approved. In that situation they are allowed to take the car back from you if you do not establish alternate financing. In effect, they are canceling the contract
and the purse agreement you signed gave them the right to do that. The problem is that when they choose to cancel the agreement---that essentially voids the entire agreement-- they are obligated to immediately return to you any trade in or deposit or payment that you made on the vehicle. If they refuse to do that---or if they even try to charge you a fair rental value of the vehicle, you may sue them for breach of contract
and recover every dime you gave them.
Tell the dealer that they have 48 hours to return all of your money or you will sue them for Breach of Contract. You appear to have a meritorious claim against them.
I wish you the best in 2011.
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