4. RESCISSION BY DEALER IF THEY ARE UNABLE TO ASSIGN THE CONTRACT
TO A BANK OR FINANCE COMPANY

Auto Sales contracts rely on the dealer being able to assign (sell) the contract to a finance company. Hence their name "Conditional Auto Sales Contract"

Because there are times when a dealer can not assign the contract they put a NOTICE OF RECISSION RIGHTS in the contract which allows the dealer to cancel the deal if they can't sell the contract; normally 10 days.

When the dealer opts to rescind the contract they must return any downpayment and/or trade-in to the buyer. If the trade-in has been sold the buyer must receive the stated trade-in value or fair market value (whichever is higher) within 5 days.

CAUTION: Some dishonest dealers take advantage of this provision to increase their profits. The dealer KNOWS they can get financing but contacts you saying they can't "get financing" and they will have to "re-write" the contract or sell you a different car. If the dealer has contacted you stating they couldn't get financing and need to "re-write" the contract reply that you understand BUT that you will NOT return their vehicle UNTIL your downpayment/trade-in are ready to be returned to you. You may, suddenly, learn that the dealer "got financing" after all.