It's too bad that the DMV can't do more to punish the used car dealer -- Front Line Motors -- in this case. But at least it conditionally revoked the dealer's license for two years, and the Court of Appeal affirms.
It's the kind of used car dealer you love to hate. The facts:
"Twyla Davis purchased a car from Dealer. At Dealer’s office, Davis
applied for financing from First Credit Finance (Financier). Davis paid a $2,000 down
payment and was obligated under the retail installment sale contract to pay an additional
deferred down payment of $500 two weeks later. One week after Davis signed the
contract, Dealer told her she was to return the car because financing had been denied.
Three or four days after hearing from Dealer, and on the same day she received the
declination letter from Financier, Dealer repossessed the car. Davis asked Dealer to refund her down payment. Dealer refused, telling Davis she would have to sue Dealer in
court for the money.
Zaneicesha Phillips paid Dealer a $3,800 down payment and was obligated
under the retail installment sale contract to pay an additional deferred down payment of
$500. She had constant mechanical trouble with the car and tried to return it, but Dealer
refused, saying the deal was “finalized.” After the car was repossessed and Dealer’s
manager told Phillips the loan was denied, Phillips requested a refund of her down
payment. The manager “laughed and said, ‘No way, . . . your loss . . . take us to court.’”
As you can probably imagine, the people whose down payments were wrongfully retained were not individuals with money to burn. They're vulnerable people buying used cars. To laugh at them as you take their down payment adds insult to injury.
As the Court of Appeal says: "Here, Dealer’s conduct confirms our worst stereotype of used car salesmen.
Unabashedly, Dealer repossessed the cars in question, resold the vehicles to new buyers,
retained Davis’ and Phillips’ entire down payments despite the women’s entreaties for the
money’s return, and challenged the women to sue it in court."
Here's hoping that entities like Front Line Motors go out of business permanently.
