Ford is taking me to court for a car thats not running?

I bought a mustang from ford i drove it for a week with no problems then they call me telling me that the bank fell through and that i had to sign with a new bank with a bigger monthly i turned it down and left the car. They drove me home in it and left i only put 236 miles on it. 3 weeks later i get a call that the car doesn't run and they have to replace the engine and its my fault so they are going to take me to court. Can they do this the car ran fine when i had it i didn't modify it in any way.

Tell'em to pound sand. If they operated the vehicle, and it ran fine, even drove you home in it, and something happens to it later, tough luck for them.

Of course they can sue you, as any one can sue you for any reason, but to win they will have to prove you somehow damaged the engine… That worked fine upon surrender… And since they had the chain of custody when the vehicle developed an issue (for weeks, not hours), they have a huge legal task, especially since they were to do a full inspection when the car was received.

You drove it in there and they took it back. At that point it was their car and you had no control of it.
Tell them if they persist you will take them to court for slender.
They should have made sure the finance was in place before they delivered the car.

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