Sep
01

Will you get your down payment or trade-in back if the dealership cancels within 10 days?

Pursuant to the purchase contract the car dealer is required to return to you all consideration given for the purchase. This includes your trade-in vehicle. If you gave a $2,000 down payment and a car as a trade-in and later you decide to return the car you purchased, the car dealer is required to give you back both the $2,000 and the trade-in.

In the event when a car dealer has already sold your trade-in, he may offer you the value of the trade-in as listed on the purchase contract. The language of the purchase contract does not appear to give the car dealer this option. It requires the return of the trade-in. However, if the car dealer does sell your trade-in, you should tell the car dealer that he is required to give you whatever is the highest value for your trade-in out of the following:

  • the value of the trade-in that is listed on the purchase contract,
  • the fair market value, or
  • the price the car dealer received when it sold your trade-in.

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