Consumer Protection Law
Consumer Protection Law Questions? Ask a Lawyer Now.
Hi, I'm Thomas and will be happy to assist you. My goal is to make you a very satisfied customer! Thanks in advance for your patience.
Are you asking whether there is such a right of rescission? Does your automobile purchase contract provide you with a right of rescission under its own terms?
Yes......I was at a dealer Saturday "looking" at new vehicles and after several hours of back and forth I signed a contract for a new SUV.....but over the weekend and after studying my budget I've concluded I can't afford it. I didn't give them the down payment ($2,500) Saturday because I didn't have my check book with me. Accordingly I was to go to dealer later today to pay the down payment and pick up the vehicle. I called the salesperson this morning and told them I'd concluded I can't afford it and and wish to rescind the deal.
Did you review your contract to determine whether it provides for a right of rescission? Have you signed any paperwork for a loan or just the purchase agreement?
I can't tell from the paperwork if the contract contains a right of rescission.....
What I signed is titles "Motor Vehicle Retail Installment Sales Contract and Purchase Money Security Agreement"
Unfortunately, if the contract doesn't contain a right of rescission, the law doesn't automatically provide such a right like it does with some consumer transactions (such as door-to-door sales, loans on your home for remodeling, etc.). And if you fail to pay the down payment and go through with the transaction, you would technically be in breach of contract. They could sue to enforce the contract. However, since you never took delivery of the vehicle and never paid anything down, it's very likely you can talk to the dealership and just have them voluntarily void everything. Thus, that is the best place to start. Just going back and letting them know you really cannot afford the vehicle and would like to void the contract(s).
Oh, my belief that the rescission right applied to all installment contracts isn't the case then? Apart from what you suggest is ther any other "leverage" I have?
Yes, unfortunately it does not apply to all installment contracts. I really wish it applied to car sales given the unscrupulous tactics they use, but the law just hasn't changed to allow that yet. I think the best leverage you have is that you haven't taken the vehicle yet.