I entered a Motor Vehicle Sales Contract with a car dealer, I specify that the loan has to go to my credit union on the contract. When my credit union declined my loan, the car dealer said I am still obligate to purchase the car, because they have the right to assign my loan to any institutions they want as long as the interest rate dosen't exceed the contract rate. I don't agree with them because under the state law it's illegal to seek multiple agreements on the car loan. Any helps on this issue will be greatly appreciated. I am too poor to go further on this legal battle with the dealer.
2006-07-30 11:03:08 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
It depends on your state but, generally speaking, if you have not signed the Bill of Sale then you have not purchased the car. Sales contracts are usually nothing more than a tool that lays out the terms by which you and the dealer come to some agreement to enter into a real sale. As such, they are almost never enforceable as a real sales contract, particularly if one of the terms is not met (credit from your lender). It's likely that the dealership is trying to strong-arm you into purchasing the vehicle even though you were declined by your preferred credit provider. Talk to a free legal clinic in your area for local law, but I think you're okay.
In the worst case scenario, when they provide you with the new lender's name and phone at the dealership, just call the lender and tell them you're planning on entering into bankruptcy as soon as the sales contract is executed. Problem solved...
2006-07-30 11:14:33 · answer #1 · answered by m137pay 5 · 0⤊ 0⤋
Yes you are obligated to purchase the vehicle if there are no changes to the contract. The dealer owns the contract and can sell it to who they wish, your lender has the right to sell it also by the way. Good luck. I own two small dealerships and have been in the car business 6 years.
2006-07-30 11:14:36 · answer #2 · answered by KP 2 · 0⤊ 0⤋
as long as the interest rate does not increase they have a valid contract. if any of the terms of the loan changed you could get out. i am a finance manager 32 yrs in the car business
2006-07-30 11:09:07 · answer #3 · answered by burner 2 · 0⤊ 0⤋
With that in mind, next time you are buying the car, get the loan first before you walk into the dealership. That way, you could leverage your deals
2006-07-30 20:18:44 · answer #4 · answered by Hoa N 6 · 0⤊ 0⤋
No they cannot MAKE you buy that car, even if you were approved, on any MAJOR purchase you have 3 business days to change your mind. So tell them to stick it where the sun don't shine and tell them NOW!!!
2006-07-30 11:30:03 · answer #5 · answered by perplexed 4 · 0⤊ 0⤋
Just say no and walk away. Don't talk to him. He can't force you to buy the friggin car. Get real. WALK AWAY. What's he going to do? Drive the car to your house and park it in your driveway>??
2006-07-30 11:07:14 · answer #6 · answered by Anonymous · 0⤊ 0⤋
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is:
http://umgarticles.atspace.com/debt-consolidation.htm
2006-08-01 21:26:32 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Take it to Judge Judy.
2006-07-30 11:06:45 · answer #8 · answered by Jesuslovesyou! 3 · 0⤊ 0⤋