Tips on Buying Cars: cars final contract, scare tactic, taking possession


Question
My brother in Washington state signed the final contract on a new Toyota. He also signed the power of attorney document for the dealer to do the licensing paperwork. However, the due bill, checklist and the odometer documents were not signed because the dealer didn't have the van on the lot. He has to get the van from another dealer. My brother is suppose to bring a check to pay the balance (no financing) when he picks up the van. He hasn't driven it. He now doesn't want the van. Can he cancel the contract by not taking possession of the van? Or is he legally responsible to fulfill the contract? If he is responsible, what are the financial penalties he could face if the breaks the contract?

Answer
Tim,

Thanks for your question.  The answer to your question is simple as far as you and your brother are concerned.  NO, he is not the legal owner until he takes possession of the vehicle.  He is not indebted to the dealership at all.  He has not signed all of the paperwork, and more importantly has not taken possession of the vehicle.  He is entitled to a FULL refund, unless the buyers order specifically states he will owe the dealership a stocking fee, or transportation fee.  He does not have to purchase that vehicle, and the dealership has no course of action against him.  Now, with that being said the dealership will try every scare tactic under the sun to get him to take delivery of the vehicle.  Don't fall for it.  He is not the legal owner, and has not taken possession of the vehicle.  

Hope this helps.

Thanks - JB