Dealership wants to cancel contract after finding problem with trade in

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guestposter

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I traded my 2009 car in for a new car at a local Toyota dealership. On Tuesday the salesman called and left a message that they found some frame damage on my trade in so would not be able to allow me the price in my signed contract. Is this common? Is it legal? I left the vehicle there when I picked up the new one. I had purchased it from an individual who did not disclose and I never had it in for anything but oil change.
 
What were the terms of your contract? That is the most important place to look as it will define who is right and who is not going to be happy.

With regard to your defense of "someone else never told me about it" - why should the dealership care? If the paper you signed says that they will take your word that you don't know of damage, then you're in the right. Was it an exchange "AS IS" - or was it something different. If you warranted or represented that the car was supposed to be something and it isn't, it doesn't matter that you didn't know. It only matters that you were wrong about the state of the car that you traded in. Let us know what you see in the contract.
 
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