Tips on Buying Cars: Used car return, pay stubs, date show

Question
Made the mistake yesterday evening of driving off a lot with a "new" used vehicle along with what was to be my trade in.  Somehow my wife and I were talked into not trading the so called "upside down" vehicle in as trade and are now possibly stuck with a extra vehicle.  The suggestion from the lot manager was "just give it back to your bank and take a 30 point credit hit".  We tried to walk away then, but didn't. Financing has yet to be approved.  Gave a $500 down payment. Was told to bring by loan approval docs ie., reference sheet, pay stubs etc, today.  Called this morning and requested that the finance person hold off on loan approval and that I would be returning the car this afternoon. I was quickly transferred to the manager who requested that I come in and discuss this with him. What are my options?  How should I approach the meeting? The returning of what should have been my trade into the bank sounded like a good idea last night, but when I had time to think about it it was too late...
Thank you,  Keith

Answer
Keith you can get out of this, Of course this must be some type of note lot. It is against the law for a licensed dealer to tell someone to purposely repossess their auto, truth in lending laws. You need to be strong. If this guy does not have all the documents they asked for then they cant get the loan done. Do not put full coverage or any insurance on this car, the bank will not fund the loan back to the dealer if there is no insurance. Under no circumstances you should take any of the documentation they asked for, even if the talk you into again at least they can't clean up the deal without the Docs and you will have another night to think about what your doing. People need to understand that your credit report shows the dates that you do EVERYTHING, one of the worst things is for your report (by date) show that you went out and bought one car and repossessed another, this can be very damaging. If you are ever going to try and have good credit, this is not a good idea. Now the only thing I see is your $500, they might try to keep this, THEY CAN'T, you tell him you will go to the city or attorney general and file a formal complaint and tell the licensing office that they told you to repossess your car, that should give you your money back. You need to be strong and take control of this situation. Need more help, let me know