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[ca] Dealership Demanding Car Back 3 Weeks After Purchase And Says They Already Sold My Trade-in?

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Location: California, USA. Please bear with me, I’m shaking because I feel totally sick to my stomach. Three weeks ago, I bought a used Civic from a franchise dealership. I signed a mountain of paperwork, put down $2,000 cash, and traded in my paid-off Mazda (they gave me $4,500 trade credit). The finance guy shook my hand, handed me copies of teh signed retail installment contract, and I drove off with temporary tags.

Yesterday, the dealership called me aggressively. The manager claimed the lender "refused to fund the contract" and demanded I come in within 48 hours to sign a new deal with a higher APR or return the car, threatening to "report the vehicle stolen." When I told him I’d just take my old Mazda back and cancel the deal, he scoffed and said they already wholesaled my trade-in last week.

how is this even legal? Can they actually report a car I hold a signed purchase contract for as stolen? If they disposed of my trade-in before the financing was actually finalized, what are my legal rights here? I can't afford a lawyer and I'm terrified of waking up to cops at my door.

submitted by /u/K7estrelix
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