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Can a used car dealership sue me for returning a car that i am financing?

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I no longer want the vehicle because within the first week of having it, the engine blew. A week later after they claimed that the car was running with no problems, i pick the car up and later that night it wouldn't start up. I find out from their mechanic that the engine that was put into it wasn't any good, and was told that saw dust was put into it so it would run for a few days. Now the car is in the shop getting another engine put in it. But with all the problems it has given in this small amount of time, i no longer wish to keep doing business with this dealership, so thats what i told them. When I did this one of the salesman told me that they would sue me for not keeping the car and making my payments.

3 Attorney Answers

Best Answer
You may have no other option than to let them sue you and counter sue them for violation of the consumer protection act.
Best Answer
Assuming that the dealer arranged the financing on this vehicle, Michigan law [MCL 492.114a(b)] and Federal Law [16 CFR 433], provide that you have the same claims and defenses against the finance company as you do against the dealer. It sounds like you have several claims here -- fraud being one, breach of express and implied warranties, violation of Michigan's Consumer Protection Act and violation of Michigan's Motor Vehicle Service and Repair Act. As to the shady dealer, you would have the right to recoup all of your losses and get your attorney fees paid; as to the finance company, you would have a defense to further payment and could collect up to the amounts you have paid. If the finance company commits any independent wrongdoing (such as violating Michigan's Debt Collection Practices Act), then you may be entitled to damages beyond what you paid under the contract, plus your costs and attorney fees.
You may want to file a complaint against the dealer with the Michigan Secretary of State - this costs you nothing and may get your case resolved. Here is a link to the forms and instructions: http://www.michigan.gov/documents/sos-197_15930_7.pdf. Even if this does not resolve the problem, if the Secretary of State finds violations and issues Notices of Non-Compliance against the dealer, this will make your case very easy for a lawyer to step in and help you.
Good luck!

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