Answers:
There is a rescission period where the dealership can cancel the contract if they are unable to find financing. The dealer does have the right to request you return the vehicle. If the dealership didn't send out a rescission letter in time (10 days in CA) then they are basically required to finance the loan themselves. The dealer might call and say they found financing at a higher interest rate, you can return the vehicle for no penalty if this is the case or you can resign at the higher interest rate. If they didn't send their letter out in time, tell them you don't want to pay the higher interest and you don't want to return the car and you have a valid contract. Tell them they should "buy down the interest" from the lender. Basically, they would give the lender money upfront to charge you a lower interest rate.
Also, credit unions tend to have better interest rates so see if a local cu can give you a loan.
Other Answers:
That happened to me too. The financing is going to happen, it just might not be the same rate or same lender when all is said and done. They are not asking you to bring the car back so no worries =) Best wishes for an awesome interest rate!
It depends on what state you live in. In Georgia there was a dealership (Bill Heard) that did the exact same thing to some consumers, and they got away with it. Good luck to you, you should probably contact a lawyer. The purchase contract only holds if you are able to pay for the vehicle. Usually, the dealership can find financing for just about anyone. The only downside may be that you may not like the terms (interest rates, payments, etc...). If he is not able to get you financed, you will have to get financed on your own or look for another vehicle.
Yes! It's possible that the dealer delivered you the car without a final approval. What this means is that the dealer had a fair idea that the loan would be approved and went ahead and delivered you the car to keep you from shopping around. Without an approved loan they will not get paid and they can request that you bring the car back. However if can arrange financing on your own, you could of course buy the car. Just because they had you sign the contract and purchase papers does not mean that the deal is done. Your only recourse should the loan not go through would be to contact the Secretary of State in your state, the BBB, and any other consumer group to advise them of this practice. But before you give up make some calls on your own to see what you can do to get a loan on the car. There are some finance companies that work on line. Try Drive financial, they are very aggressive and have helped many of my customers! Best of Luck! J
I'm certainly not an attorney, but I'd bet the contract has a contingency clause concerning just that particular issues.
You should read the contract word for word and see what it states.
You could also be a victim of a what's commonly called a Yo Yo scam (see the link below).
My suggestion first is to start looking for other financing options, especially a credit union. If you aren't a member then you should check locally and see if you are eligible. The Federal government relaxed the membership rules a few years ago, so you may be eligible and not know it.
I'd also bet that the dealer has informed you they no longer have your trade in (If there was one) This is also a common scenario with a yo yo scam.
Good Luck
Jerry Christopher
http://www.usedcarwise.com
Source(s):
http://www.usedcarwise.com/dealerscams.html