Bought an existing business with a really bad vehicle... what to do?

I bought a servicing territory from this owner operator.
I service a warehouse doing deliveries in a reefer CDL required straight truck, business came with 2 vehicles, and the exclusive rights to service the business.

The service contract nets me $2,400/wk, so after I pay off my other driver, fuel and insurance I make a healthy income. At least it what it was presented to me on papers, and what I paid for through the broker.

Route all and all cost me 150k, with 80k down. The rest to be paid off, on a monthly basis.

The route comes with 2 trucks, a 2003 Freightliner with a N14 with 200k miles, and a 2001 international 4300 with a T444E with 330k

Same week into me buying the route the international is down for the count, after 3 days in the shop, they tell me the tranny is completely done for, it felt bad from the get go, but I figured I would at least wait until I can come up with the first months payment before putting the truck on in the shop.

Long story short, 7k to replace the tranny, had to spent 4k to make it pass inspection (expires this month), and 3k on the leakage and misc crap wrong with it, mind you, this is all within the first week.

The Freightliner was solid all around.

After I tell the previous owner, he tells me, thats my problem, and he wont accept any late payment nor consider me deduction anything from his note to pay off the truck he just sold me.

Thank God it was done through a broker and lawyer, because in the contract it states that the vehicle must be in good condition and able to pass inspection by the time of closing.

I don't know much about law practice, but I'm sure I might have a case in court about why I did not pay him first month, but the thing is, the paper states "by the time of closing" so I don't know how it would work out, he had the vehicle painted at the time of closing, so I could not properly inspect it, not even take it to a shop like the frieghtliner.


this is what the contract says regarding the vehicle:

FIRST: Business. The SELLER agrees to sell, transfer and assign all of its rights in and to a certain distribution agreement between xxxxxxxxxxxxx and xxxxxxxxxx, together with all other assets used in the business if any, including hand trucks or other similar implements, to the extent existing. Included in this transfer and sale is the following motor vehicles:
2001 International, with VIN Number xxxxxxxxxxxxx
Said vehicle shall be capable of passing Pennsylvania DMV at the time of Closing. SELLER further represents that the vehicles are approved by DOT and the company for use in connection with the business being transferred herein.