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Hi, Two days back I went to a car dealer to see the used car, he shows one car and price was negotiated between us.SO we said today is saturday so we will come on monday with cash.But dealer said that you can give me a personal check and finish paper work today,monday you can give me the cash and take your personal check return.So we finished the paperwork,he took my driving license copy also.Next day I found that Car Fax report is not clear of that car.So now I want to cancel the Contract.I asked to the dealer to cancel the contract,he asked 375$ to cancel the contract as per Chillicothe DMV Law.Is there any law is there?I am very new to USA.Any one can you helo me in this thing?
Here is California's Car Buyers Bill Of Rights does it say the dealer can keep $375 to cancel a contract. If you did not take possession of the car, you should be able to cancel this deal. If the dealer will not refund your money, take them to small claims court. Hire an attorney to represent you legally and send the dealer a letter stating if a full refund is not given, you will take them to court.
He is fabricating things to get some money out of you. DONT PAY IT. That said, you signed a CONTRACT. Thats legally binding. Maybe. The bad car fax should be a legal way out. The fact that you havent paid him anything suggests the dealer wont sue you over it. So they are ASKING for $375. I wouldnt pay it. While a judge in small claims COULD side with them, they dont want to spend a day in court suing a customer and id say its 50-50. Could go either way.
If you did not take delivery of the vehicle they can not hold you up to the contract. If you did take delivery of the vehicle then yes, the can cahrge you that amount. They will try to keep you in the car they are trying to sell, keep your grounds (if you didn't take delivery you are not responsible) and walk away.