Possibility of Breaking a Contract to Buy a Car

**civens66** · 01-04-2007, 05:43 PM

I purchased a car in massachusetts about a month ago. I signed all the paperwork and was given the car with dealer plates. The salesman told me that I would be getting my plates shortly and they would call when they arrived. Well as time passed I did not hear from them. I called the dealership and found out that the dealer that sold me the car had been fired. I was also told that i needed to fax over more paperwork that they had misplaced. I did all this and still nothing. As the time passed I also noticed that the plastic molding on the inside of my car kept popping off and I had to keep putting it back on. I called to let them know and to see what they could do. Well the dealer that I talked to told me he would figure out what to do and call me back. I never heard back, so I called the dealership a few days later and could not get a hold of anyone important. Now just a few days ago I was actually pulled over by the police for having dealer plates and was told I could not drive my car until everything was solved. Well again i could not get in touch with anybody. I finally get a call today saying that the bank refuses to pay the dealer the money for the loan until I get a Home Phone Line. I told the first dealer (the one that was fired) that I did not have a home phone and was told that it was fine. So now nothing is going to happen until I get a phone line. My problem is that I rent a cottage that does not have a phone line, nor do I want a home phone so this is not going to go anywhere. Is there a way that i can just say that they can have the car back, and leave it at that because right now I have a car that I am paying insurance for that I cannot drive. Please does anyone have a solution!!!

**Mr. Knowitall** · 01-07-2007, 04:37 AM

If you were decined a loan by your lender, that's your problem and not the dealer's. Get a phone, even if for just long enough to close the deal on the loan.

jk · 01-07-2007, 07:46 AM

contrary to mr. k's belief, the problem may very well be the dealerships. If the purchase was contingent upon financing arranged by the dealership, the sale could be voidable if they cannot obtain financing as agreed upon in the sales agreement.

Was part of the sale to include financing (hopefully with specified terms) obtained by the dealership?

So the qestions are:

was financing part of the deal?
if so, were there terms for the financing stipulated?
do you want to fulfill the purchase?

**Mr. Knowitall** · 01-07-2007, 09:06 AM

Sure... if the sale was conditioned on his obtaining financing. But have you ever seen a dealership sales contract, from anywhere on the planet, which includes such a provision? The OP should check his contract to see what it says, but I'm not optimistic that he's going to find such a clause.

jk · 01-07-2007, 09:33 AM

Quoting Mr. Knowitall

Sure... if the sale was conditioned on his obtaining financing. But have you ever seen a dealership sales contract, from anywhere on the planet, which includes such a provision? The OP should check his contract to see what it says, but I'm not optimistic that he's going to find such a clause.

why yes I absolutely have. I have had just such a contract myself and it allowed me to rescind the contract due to the dealerships inability to obtain financing for me at an agreed upon interest rate.

actually many contracts are contingent upon dealer financing.

if the sale is voidable would obviously be dependent upon what is actually in the agreement but it is very possible part of the actual contract did involve the dealership was to obtain financing. The big stickler is usually if there are limitations on the terms of the financing predetermined or not. with no limitations on the terms of financing, the dealership can generally arrange financing of some sort. It may be at exhorbitant interest rates but that is of liitle difference as long as they could perform as contract directed.

**Mr. Knowitall** · 01-07-2007, 12:31 PM

Many contracts, sure... say, to buy homes. For the purchase of cars? C'mon.

jk · 01-07-2007, 02:29 PM

Now I admittedly required the clause in my particular contract so that it was unambiguous but many car sales agreements include the financing within the agreement and it becomes part of the contract. It would depend upon the agreement itself.

OP's siutation seems to be one that may very well have included financing as part of the deal. Dealerships actually hurt themselves sometimes doing what they do the way they do it because it does allow an out in some situations. The reason they want to do it is they recieve payment in some way for the financing and are greedy enough to not want to let that go. I have seen a dealership actually try to convince a customer that wanted to pay with cash (actual cash, not a pre-approved loan) that they should finance the car just to gain the profit from that part of the deal.

Again, it would depend upon the actual contract to make the call.