AA747123
Topic Author
Posts: 33
Joined: Wed Dec 14, 2016 5:15 pm

Motor Vehicle Contracts

Sat May 20, 2017 12:42 am

Last Saturday a good friend of mine went into his local Honda dealer in Los Angeles and purchased a 2015 (Used) Honda Accord. He got home and to say the least his wife was not happy (he made the choice without her at the dealer). Since they have two daughters in college they both ultimately agreed that right now they cant afford it.
Early Sunday morning he went into the dealer as soon as they opened and advised them that he wished to cancel the contract. Under federal law you have the right to cancel a purchase contract for 72 hours after it is signed. The dealer manager told him he was an owner and that was that. My friend tried to tell him that he was a legal right to cancel the contract within 72 hours and its been barely 16 hours. The manager didnt want to hear it.
My friend left the keys on the desk, and the car parked in the front of the dealer. He went home with his wife, and put a stop payment on the check for the down payment of $3000.00
Now its been almost a week the dealer is threatening legal action for the stop payment on the check and is now charging him $50 a day storage for the car he returned. The dealer said the contract was filed and he is a legal owner.
What should he do?
 
ltbewr
Posts: 12879
Joined: Thu Jan 29, 2004 1:24 pm

Re: Motor Vehicle Contracts

Sat May 20, 2017 1:31 am

Have him contact the city, county or state consumer affairs agencies or even the state motor vehicle agency as involved a motor vehicle sale.
 
dtw2hyd
Posts: 4631
Joined: Wed Jan 09, 2013 12:11 pm

Re: Motor Vehicle Contracts

Sat May 20, 2017 2:01 am

File complaints with BBB and state AG. Both can be done online. Whether you friend finally wins or not, both actions show he is not kidding.
 
sccutler
Posts: 5651
Joined: Thu Jan 27, 2000 12:16 pm

Re: Motor Vehicle Contracts

Sat May 20, 2017 3:25 am

What in creation makes you think you have the right to cancel a purchase contract?

There is a statutory right to cancel on home sales (vacuum-cleaner salesmen snookers grandma at her house), but you buy a car, you buy a car. End of story.
...three miles from BRONS, clear for the ILS one five approach...
 
blueflyer
Posts: 3808
Joined: Tue Jan 31, 2006 4:17 am

Re: Motor Vehicle Contracts

Sat May 20, 2017 7:54 am

AA747123 wrote:
What should he do?

Better inform himself and read his contract carefully.

There is no such thing as an all-encompassing federal right to cancel a purchase contract within a 72-hour period. This cooling-off period applies only to transactions that did not take place at the seller's primary place of business (along with a few other restrictions).
https://www.consumer.ftc.gov/articles/0 ... e-may-help

There is, on the other hand, a Car Buyer's Bill of Rights in California.

Under the bill, consumers who purchase a used vehicle under $40,000 must be offered the option to buy a two-day contract cancellation option. I'm guessing your friend does not remember being offered an option to cancel. He should read his contract in entirety and look for language to the effect that he was offered the option and declined. If such language exists (my money says it does), the dealer is right and he is the not-so-proud owner of a used Honda. He could fight and argue that he did not knowingly decline the option, but since he signed, the burden of proof is on him. Better wish him luck with his wife and offer your sofa just in case

If he does not find any reference to the cancellation option, he can file a complaint with the DMV and demand that the dealer cancels the transaction.
https://www.dmv.ca.gov/portal/dmv/detai ... cts/ffvr35

sccutler wrote:
What in creation makes you think you have the right to cancel a purchase contract?

Easy there... I know California isn't your favorite state, but don't rule them out of creation just yet!
MAGag
 
sccutler
Posts: 5651
Joined: Thu Jan 27, 2000 12:16 pm

Re: Motor Vehicle Contracts

Sat May 20, 2017 2:29 pm

blueflyer wrote:
AA747123 wrote:
sccutler wrote:
What in creation makes you think you have the right to cancel a purchase contract?

Easy there... I know California isn't your favorite state, but don't rule them out of creation just yet!


Heh. Well played.

I was not tagging the Sunshine State - and (tbh) I love California, really enjoyed my time living there.

It's interesting that California has a law requiring that a 48-hour return option be offered, and because it is required to be offered, with the option to be accepted or declined, I have no issue with it at all. And, if the dealer from which the OP purchased failed to offer (as noted above, I bet they did, but who ever remembers everything they read and signed at closing?), the dealer could have problem. Bet they did it right, but look forward to hearing more.

But, again, why would anyone believe that they should have the right to purchase a product, change their mind, and return it?

---

All that said, the first time my wife bought a car (an Audi), she did not have financing, and the dealership said, "No problem, take the car and, if you don't get financed, you can bring it back." And they meant it, sent it out on a Bailment Agreement. Risky, but it worked, as we drove that car for 190,000 miles (and no, we did not return it after that!). I assume that they were careful about judging who got that kind of offer.
...three miles from BRONS, clear for the ILS one five approach...
 
LittleFokker
Posts: 804
Joined: Sat Sep 28, 2013 10:25 pm

Re: Motor Vehicle Contracts

Sat May 20, 2017 8:01 pm

I think the more important question is why is the OP's friend buying a car without consulting his wife first? No matter what your financial situation is, buying a car is a major purchase, and I cannot fathom making such a purchase without fully vetting it with the better half.

Hell, I'm afraid to go to a dealership and look at cars without my wife around.
"All human activities are doomed to failure." - Jean Paul Sartre

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