We traded in a car and purchased another one from an az dealer. two days later the dealer called and wanted their car back. Said they could not take our car as a trade-in as it had a branded title. the mileage had been tampered with two years back and was not original miles although on my title it says actual mileage. Can he cancel the contract like this after all paperwork has been signed and we've had it for few days? The contract does state that if the title comes back as a salvage title it can be canceled but this is a branded title not a salvage. they said only way to do deal is to pay $4500 more in cash!!! Anyone have this happen to them?

Have you browsed through the information in LawInfo's Free Legal Resource Center to learn more about your issue yet? See: http://www.lawinfo.com/consumer.html. You can certainly try to speak to a lawyer to determine what legal options may be available. In the meantime, you may be able to learn more on your own. Search the "Free Legal Resources" tab, or browse the Consumer Resources. Good luck.

Yes, the dealer has every right to demand the car back if the dealership cannot obtain financing for you at the terms you agreed to. In that case the agreement is deemed to be automatically rescinded, and the parties are obligated to return all consideration given to the other. This means you must return the car, and the dealer must return your downpayment. On the bright side, you just got to use their car for free. Often, the dealer will try to convince you to change the contract terms, by increasing the down payment, interest rate, etc. You are under no obligation whatsoever to do this. If part of your down payment was a trade-in, the trade-in must be returned, or if already sold, the trade-in value or fair market value, whichever is greater, must be returned. Occasionally, the dealership will simply tell you that no financing could be obtained, so make the payments directly to them. Before agreeing to do this, you should have them verify, in writing, that your good payment history will be reported to major credit reporting service