Question: I bought a new car, but my trade-in broke down before I turned it in to the car dealer. What should I do?

July 5, 2005

Hi Tony

I purchased a brand new car today and had signed all the paperwork (including trade-in, financing, etc.). I was supposed to pick up my new car tomorrow.

On my way back home from the dealer, my car broke down and it wouldn't start. I was wondering if this is going to affect the trade-in value on my car when I go to pick up my new car tomorrow.

Can the dealer back out of the deal once I signed all the paperwork? Any insight that you can give me on this matter would be very helpful.

Thanks,

Vivi

Answer:

Hi Vivi,

You should call the Sales Manager at the dealership and explain what happened. He'll tell you one of two things: Have the car fixed before turning it in, or he'll tell you not to worry about it.

If the car isn't running you may have to get it towed to them if they will take it as is.

Technically he can make you have it repaired. They appraised it and gave you a trade allowance based on the car's condition at that time. It just depends on how they want to handle it.

Communicate with them and see what happens.

All my very best...

Tony Iorio