Tips on Buying Cars: Buying a used car, dealership signs, third party financing

Question
my daughter bought a used car in Akron, OH, gave a $500 deposit which was cashed two days later, signed all the papers, loan agreement, conditional delivery agreement, etc.  ELEVEN days later the dealership let her know she had to bring the car back because they could not secure financing.  The conditional delivery agreement states that if the dealership is unable to obtain third party financing within FIVE days the dealership can cancel the contract and the car must be returned.  Do you think this is worth fighting in court?  Wouldn't they know within five days if they could secure a loan? I understand not getting financing but if i was dissatisfied with the car after five days would i be able to return it?

Answer
Valoree Lee,

Thanks for your question.  Technically the law reads that Conditional Sale and Delivery Agreements are not enforceable.  If the dealership signs all the contracts, you sign all of the contracts, and you deliver in the vehicle (your daughter), then the dealership is responsible for that contract, whether they can sell the contract to a third party or not.  You would simply make payments to the dealership, the way the law reads.  Secondly, yes the dealership would know within 5 days that the contract is not financiable.  Thirdly, would it be worth going to court....well that is a matter of opinion.  You would win, but it would be very costly.  The question is how far do you want to pursue this.  If you want to pursue it, then you are in the right, and they are in the wrong.  It is totally up to you, just understand that it is very costly, and very time consuming.  

Hope this helps.

Thanks - JB