Can I sue a dealership for my trade-in car after signing over the title?

Full question:

I used my car as a trade -in when I bought a used car from a dealership. After everything was signed and completed, right before I was ready to drive off, I changed my mind and decided I didn't want my old car to be part of the deal. I told the salesman and he said they wouldn't do anything with the car until they heard back from me. This occurred on Wed. evening. The salesman said he wouldn't be there the next day, so we agreeded I would come back on Fri. When I called on Fri. to be sure the salesman would be there, I was told by a manager that they had started working on the car because the rain had washed away the note the salesman had put on the windshield saying not to do anything with it. He said they had just done a safety inspection and replaced the front brake pads and turned the rotors. He said he would have the salesman call me. After waiting half the day I called him (salesman) and he told me they had replaced all the brakes and I would have to pay the cost for that $870.00 plus the $3000. which was the trade-in price. At this point I decided I would let it go and I went ahead and signed the title over to them on the following Monday. However, after more reflection I decided I did still want to keep the car. I called the next day and asked the manager if I could still buy the car back and he said, 'yes, if I paid what they had in the car'. He said I should call back and talk to the salesman tommorrow (Wed), that he would be in at noon. I assumed, after all this, they would not do anything else to the car but called the next morning just to be sure, and left a message for the manager asking them to not do any more work on the car. When I spoke to the salesman shortly after noon that same day, he said they had done more work on the car which amounted to $5500. I asked him to break that down for me and he said he didn't have that information. I asked him to check on that and call me back when he had it. I didn't hear from him that day or the next day, Thurs 5/26. I know I have made this worse because of my indecision. This started out as a verbal agreement that I could buy my car back for the original $3,000. that was the trade-in value. I did not authorize any of the work that was done subsequently. I did make a mistake in signing the title over, but after that the manager told me that I could still get the car back for what they had in it. And the amounts they're giving me are what they would charge for this work, not what it cost them. Based on these facts, would I have grounds to sue them, would it be worth the time and effort? The car is worth more than $3,000. Kelly Blue Book price for a trade-in is $6150. Thanks

• Category: Automobiles
• Date: 04/07/2025
• State: Colorado

Answer:

We cannot give legal advice, and are not forming an attorney-client relationship with you. The following is not a substitute for the advice of a local attorney. But we hope the information will be useful.

If I were suing them, I would focus on their mistake regarding the washed-away note. However, if I were defending them, I would argue that you waived your claim about the note when you signed over the title after learning that they had worked on the car.

Your situation worsens because the manager only indicated you could buy it back for what they had in the car, but he did not promise to stop working on it. He may not have received your message to halt further work. Therefore, 'what they had in the car' when you were ready to buy it back was $5,500.

You could take this to small claims court based on the initial note and argue that they were not acting in good faith. However, your chances of winning are uncertain. You would likely need to represent yourself, as the amount may not justify hiring a lawyer. You can consider this a learning experience or try your luck in small claims court, but be aware that it will require time and effort, and winning is not guaranteed.