Who Owns a Custom-Ordered Car if the Customer Pre-Pays and Then Refuses Delivery?
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We have a customer that wanted a car we located at another dealership. I told the customer the dealership didn’t want the car and that he would have to pay for it in advance. He paid for the car. Now he says that he doesn’t want it. |
“I own a car dealership in North Carolina. We have a customer that wanted a car we located at another dealership. I told the customer the dealership didn’t want the car and that he would have to pay for it in advance. He paid for the car, and we went and got the car, in good faith. After we went and got the car, the customer said he didn’t want it. Who owns the car?”
You had an agreement with the customer under which you would get the car from another dealership and give it to him in exchange for the purchase price. Generally speaking, you performed your part of the agreement and now the customer is bound to perform his part and let you keep the funds in exchange for the car.
That said, some states provide exceptions to the common law where the purchase of an automobile is concerned (such as providing a period of days in which a customer can change their mind), so you should consult an attorney in your state.
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For more on this subject check out these categories: Business Law, Contract Law, Automobile & Traffic Laws
Tony K. Alexander, Esq. lives in Denver, Colorado, where he practices insurance law. Prior to moving to Colorado, Alexander lived in the San Francisco Bay area, where he was both in private practice, and worked as a staff attorney for an anti-spam company, Contact This Author
State laws vary, and the above is intended as general advice, and not direct legal advice regarding any one particular situation in any one state. For direct personal legal advice related to your own situation you should consult an attorney familiar with the laws of your state and with your situation.