Arizona man says dealer voided fully-funded car deal, ‘stole’ back new-purchased car: ‘Led me into a room and accused me of lying’

An Arizona man claims a car dealership wrongfully canceled a fully funded auto loan and kept both his trade-in and newly purchased vehicle, leaving him without a car despite signed contracts and bank confirmation that the loan had already been approved and paid.

In a Reddit post, user Auto-help2026 detailed the ordeal, saying the dispute began after he and his girlfriend attempted to trade in a visibly damaged vehicle in 2025. According to the post, the car had been involved in an accident, leaving “the whole right side… unpainted” and a dent on the driver’s side. The damage was reflected on Carfax and tied to the vehicle’s VIN.

“I can’t understate how impossible it would be to even attempt to hide this damage,” Auto-help wrote, adding that multiple dealerships had been informed about the condition and still provided lower — but acceptable — trade-in offers.

Generous trade-in offer accepted

After visiting four dealerships, the couple found a used car they wanted at another lot. The dealership reportedly kept the trade-in vehicle for two hours to conduct an appraisal. During that time, the poster says staff took the keys and moved the car from street parking to a designated customer space, indicating it had been driven and inspected.
“They came back with a generous offer, and of course we were on board!” the Reddit user wrote.

The next day, after negotiating paperwork and pushing back against added fees, the buyer says both parties signed all required documents. The auto loan was approved immediately, reportedly aided by a good credit score, and the buyer left the dealership with the new car and a temporary registration.

“I financed with them in good faith because I wanted them to make some money since they were being generous with the trade-in value,” the post states.

The paperwork issue

Two days later, however, the dealership allegedly contacted the buyer claiming additional signatures were required. After calling the bank directly, the buyer says a representative confirmed the loan was already fully funded, assigned to the new car’s VIN, and reflected in an active account with a payment schedule.

When the buyer returned to the dealership, the situation escalated. “One of the [salesmen] I worked with walked up to me and said, ‘Financing said I need to take your keys,’” the poster wrote. After being reassured it was only for a VIN scan, the buyer handed over the keys. Instead, a manager allegedly drove the car into the garage.

The manager drove the car into the garage and led Auto-help into another room, “where he proceeded to say that I lied to them about the condition of the car, that nobody on their team drove the car, and that they were cancelling the sale. I was floored.”

The buyer maintains that the damage was disclosed repeatedly and was plainly visible. When they mentioned seeking legal counsel, the manager allegedly refused to return the keys. “I left the dealership without a car,” the post states — meaning the trade-in and the recently purchased vehicle.

The trade-in, already listed as sold

Complicating the situation further, the Reddit user claims the dealership has already listed the old trade-in for sale on its website, marked the newly purchased car as sold, and that Carfax shows the trade-in under dealership ownership. Meanwhile, the buyer says the bank confirms the loan is funded and insurance has been issued for the new vehicle.

One commenter claiming dealership experience wrote:

you will own this car for free when its done ive been a dealer for years and their staff not doing their job is not your problem once the contracts are funded it becomes between you and the bank not you and the dealer you could file the car as stolen but that will show up on its history but yes they stole YOUR car.”

The Arizona buyer has since filed a complaint with the state attorney general and says they plan to pursue legal action. “Me and my girlfriend are very scared at how this played out,” the post reads. “Nothing will let me forget how brutal it was to be led into a room and have them accuse me of so many things.”