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TexLaw, Attorney
Category: Legal
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Experience:  Lead trial/International commercial attorney licensed 11 yrs
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Arizona RV purchase- No delivery can I cancel?

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<a href=contract" width="801" height="503"/>Arizona RV purchase. I signed a contract, they kept delaying delivery because financing was not being approved. Then they said I was declined, but then they said if I put down more money ($40k more down) I would be approved. I finally said no. They then came back the next day and said ok they will do the original deal. I have never taken delivery (its scheduled for Friday). Can I still cancel the contract?


Since we thought the other used RV was not going to happen, we started looking again.  We found another one for less money and less down ($50k less) much better deal.  Can we get out of the old deal and go to the new one?  I had a $5k deposit on the first deal.  Will I see that ever returned?


Again we had a signed contract from the RV show weeks ago.  A portion of that contract is attached.

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Can you tell me if you have this information (that they were seeking $40k more down, that the original financing was denied, etc...) in writing? And did you respond in writing? When was the RV supposed to be delivered?
Customer: replied 3 years ago.

no, they verbally told me we were denied. the original delivery was scheduled for tuesday 2pm. he called to tell me we were denied. said he would try again if we could put more down, or if we would accept larger interest rate and a ballon.

Did they indicate to you initially that you were approved? Does your contract say that the sale is not final until you're approved?
Customer: replied 3 years ago.

when we left the lot BEFORE signing they said i was approved. a few days later they come back and ask for more proof of income. i send it. then we schedule delivery for tuesday. monday they say i am good to go for delivery. then tuesday day i am to get delivered they say i was declined, but he can go back and ask if putting more down would get me approved. then he came back (all of this was on ph calls) and said $40k more down on top of the $60k would work. i said no, and lets cancel if they cant approve the orginal deal. then next day he said he pulled strings and got the deal done at original terms. I do not see any clause in the contract about not being final until we are approved. the contractis a retail installment sale contract

Customer: replied 3 years ago.
Relist: Answer came too late.

Thank you for your question. I'm sorry the original expert did not respond in time.

Unfortunately, in Arizona, there is no right to cancel a contract. While under your situation, the dealer started to change the terms of the deal, the fact that they have reneged that attempt and are now stating they will proceed under the original terms means that you cannot cancel the contract. Had they insisted that the terms be different and that to complete the transaction you must pay additional money not originally contemplated, then you could terminate the contract. However, since they are honoring the original deal, so must you.

What I am confused about is whether or not they have been able to finance you under the original terms. Have they?

Customer: replied 3 years ago.

yes they have agreed to finance under original terms.

Thank you for your response.

Well, you are not in a very strong position to argue that the contract should be cancelled. The fact that they did not deliver the vehicle on the exact date is not a material breach unless the contract says that failure to deliver is a material breach. So since they have found you financing under the original terms, it would be hard to argue that the contract has been breached and you should be able to cancel.

What that means really is that you can cancel the contract, but you will lose that $5K deposit. They could technically try and sue you for more, but I imagine you walk away without getting the $5K back.

If you would end up saving money on it by backing out of the deal and making the purchase of the other RV for cheaper, then I suggest telling them that you consider the contract breached because they failed to deliver timely. Tell them you agree to walk away if they do. Then see what happens.

How do you think they would react to such a proposition? Is that an acceptable outcome to you?

TexLaw, Attorney
Category: Legal
Satisfied Customers: 4430
Experience: Lead trial/International commercial attorney licensed 11 yrs
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