Question: Does the car dealer have to sell my trade-in back to me if I want it for what they gave me for it?

October 16, 2005

Hello Tony

I purchased a 2006 Ford Expedition King Ranch and signed papers on Friday October 14th. On Saturday the 15th I called the car dealership to ask if I could buy back my trade-in and also keep the Expedition.

I wanted to give them the price they gave me on paperwork for my car and pay the sales tax. They said I could buy the car back for $3,000 more than they gave me for it as a trade-in.

I need to know isn't there like a 3 day window or something that I can give them the new vehicle back and undue the deal completely and/or at least get my trade-in back at what they paid me for it?

Thank you very much.

Answer:

Hi Joyce,

Most states do not have any kind of law that allows you to back out of a deal within 3 days. I know California just recently passed one, but you actually have to pay a fee at the time of the deal in order to take advantage of it. I don't know of any other state with a similar law.

Once you signed all the paperwork and consummated the deal the car dealer is not obliged to sell your trade-in back to you for what they gave you. If a car dealer cares about building a long term relationship with you they might accommodate you, but they don't have to.

When a car dealer takes a trade it's the same as them going to an auction to buy inventory to resell. Instead of buying from an auction they buy the car from their customer. That vehicle represents a large potential profit to the car dealer. This is why they are telling you $3,000 over.

Often, the car dealer will list your trade-in on the paperwork at an amount that is higher than what they are actually putting in the vehicle. In that case you may think you are buying the vehicle back for what they gave you, but in reality they would be making a fat profit. So make sure you know what you're doing.

When a car dealer buys inventory whether it's in the form of a trade-in or from some other source, they expect to resell it at a profit. You can't fault them for that any more than you can fault the local grocery store for earning a profit.

You should contact the General Manager or the owner of the dealership and plead your case. Who knows, maybe you'll strike a chord with one of them. I wouldn't waste any time with the salesperson or the sales manager however; they don't want the deal to unravel!

All my very best...

Tony Iorio