I purchased a used car 9 days ago with the understanding that I was approved for financing, I put $1000 cash plus a trade in vehicle worth $...

Question

I purchased a used car 9 days ago with the understanding that I was approved for financing, I put $1000 cash plus a trade in vehicle worth $1000. Apparently the financing is still pending. Is there anyway I can legally get out of this contract? My fear is that now I will be denied financing and have to return the car and I won't get my old car back. I contacted the salesman today and asked what would happen if I was denied and he said that he would just keep trying but every time he runs my credit it drops lower. I also asked him if I could just return the car and get my money and old car back and he told me that my old car was gone and that I signed a binding contract. Do I have any options?

Answer

Lots depends on the exact words used to get to "the understanding that I was approved for financing". I suggest immediately writing down your best recollection of who said what, and then sue in small claims court ($7,000 maximum so you're okay), arguing that this was an unfair or deceptive practice entitling you to treble damages. While the suit is pending, I'd demand that the dealer itself finance the purchase as settlement.