Yo-Yo Car Sales

You bought a car and then the dealership demanded you bring it back. Maybe they threatened to call the cops. Maybe they had you arrested. Here's what you need to know.

In California, when a car dealership sells you a car, the financing might not be fully approved. The fine print of the contract says that if the financing doesn't go through, the dealership can ask that you return the car. They are supposed to make an honest effort to get you financed, and they have to ask for the car back within 10 days.

The dealer can use this term to mess with you. 

For example, they can "approve" you for loan terms they know you won't go through because once you have driven the car for a few days, shown it your friends, and gotten used to it, you will agree to a higher price rather than give it back. These sales where the dealer demands the car back are called "yo-yo" sales because the dealer sends the car out and then brings it right back in.

Sometimes, if you don't bring the car back in, the dealer will send a tow truck to get it. Sometimes dealers will even try to have people arrested for not bringing the car back. This is almost never legal, but it does happen. 

People in these situations have more rights than they realize.

Just because the dealer asked someone to bring a car back doesn't mean they have to. And if they don't bring the car back, it doesn't mean they stole it.

First, dealers often have no right to demand return of a car. This might be because the dealer did not make an honest attempt to get financing, because the dealer lied about the buyer's finances, or because the dealer waited more than 10 days to demand return of the car. Since the contract says they have to try to get financing and ask for the car back within 10 days, if they fail to do any of that, they can't demand the car.

If the dealer didn't follow the rules of the contract, they may be breaking the law by demanding the buyer return the car. And if they report the car as stolen, that may be a major violation.

What to do if this happened to you

If you’re in this situation, don’t panic — and don’t go back to the dealership alone. Here’s what you should do instead:

1. Gather your paperwork. Get copies of the contract, registration, any texts or emails with the dealership, and records of payments.

2. Get legal advice. This situation is complicated and serious, especially if police are involved. Talk to a lawyer immediately.

3. Do not speak to police without representation. If you're contacted by police, you have the right to remain silent and request an attorney.

You shouldn’t be arrested for buying a car. If you’ve been caught in a yo-yo deal, especially one that led to arrest or police involvement, you have rights. Speak to an attorney right away. You can contact Jubilee Legal for a free consultation. Click on the "Contact" button or call 805.946.0386.

This post is for informational purposes only and does not constitute legal advice. Every case is different. If you’ve been affected by a yo-yo car sale, consult with a qualified attorney as soon as possible.