If a dealer inflates the selling amount of a vehicle and the trade-in dollar amount, what must happen if the contract is rescinded?

When a dealer inflates the selling amount of a vehicle as well as the trade-in dollar amount, there is an obligation to return any inflated values upon rescinding the contract. Rescission of a contract effectively nullifies the agreement, meaning that both parties should be restored to their positions before the contract was made. In this case, the dealer must return the inflated trade-in amount because the vehicle's actual value should be what is accounted for in any transaction or subsequent rescission, not the artificially inflated figures. This promotes fairness and integrity in the transaction and adheres to consumer protection principles, ensuring that the consumer is not left disadvantaged due to the dealer's deceptive practices.

Returning the inflated trade-in amount aligns with the expectation that all parties engage in honest transactions and maintain transparency in the values being exchanged.