Hello, my question involves a consumer law issue in the State of Texas.
I am in Houston and I bought a new car 2015 on Memorial day and it got flooded 30-45 min after I left the dealership. The dealership had copies of my insurance policy and they were aware that I had only liability on the old car that I used for the trade-in. I asked about it and I was told by the finance manager that I had a grace period of 24 hours to do the changes to a full coverage. Texas laws only require liability, however any lender (the new car was financed through Chase) requires the buyer to have full coverage. I have spoken with several people that work in other well-known dealerships and insurance agencies and everybody is surprised that this dealership allowed the buyer to leave with the new car without full coverage and lied about a 24 hour grace period to get it. No one expected an accident and I left the dealership around 9pm, started driving home and the car got flooded. I was never required to change from liability to full coverage before leaving the dealership, as it should had happened. The contract required full coverage and the manager implied that I had it at that moment I was leaving (grace period of 24 hours). The new car has been towed back to the dealership, the dealership has the down-payment-20% of the value of the new car, and the trade-in.

I have been told that I should not have any contractual obligation with the dealership because even if the contract was signed, it was never culminated because the buyer didn’t fulfill the full coverage requirement and the contract was made under fall assumptions. Could I sue the dealership for legal liability (intentional tort or breach of contract)) and negligence? Do you know of any case similar and any ideas of what should I ask from the dealership in regards compensation? I want to be free from that contract, get the down payment back and the value of the trade-in or the old car. I am aware that if I don’t have a car that I could trade-in next time I buy a new car, the taxes will be higher, so I will be in a disadvantage and I should be able to get back the old car or be compensated for all of that.

Thanks a lot for any help and guidance with this case!!