Can the Mini Cooper dealer demand a down payment days after i sign the papers and drive off the lot?

Question

Help! My girlfriend finally bought the Mini Cooper she had been dreaming of this last saturday and had her new car joy ruined today by the dealer asking for $2300 more!

A quick run down: Found the perfect Mini with all the options last friday night. She went back first thing Saturday morning and tried to make a deal. She got free floor mats:( paid sticker 25700, bought gap insurance, extended warranty & Lojack. Said she didnt want to go over 30k. Walk out just under 32K. $490 a month for 7 years!!

Today, South Bay Mini calls and says the bank didnt approve that amount and she must bring in $2300 or go to her CU.

Is this a joke?! Are there hidden cameras set up waiting to see my reaction?! Are they cheating, lying bastards that need to squeeze $2300 more out of her?

My question: Can they do this and if yes can we give them the car back and not face a cancellation fee, bad credit reference, etc?

Any help will be greatly appreciated.

Thanks in advance.....

Answer 1

Yes they can ask for more money down because they didn't get a full call or all the money needed from the bank approval. On your contract there is a box that says "sellers right to cancel". Basically that means the dealer has 10 days the get you approved as written on the contract or the contract can be voided and the car returned. So here are your options:

1) Take the car back-they don't want to lose a sale so negotiate the price with them again. If she paid full sticker price then there is room to negotiate. Trust me they don't want the car back.

2) Cancel the extended warranty and Lojack. Keep the Gap it is very important. You can purchase the warranty for cash before the car hits 12,000 miles. That is when the prices for warranty's increase.

3) Have her go to her credit union if necessary. She may get a better interest rate anyway.

4) If you decide to give the car back there are NO ramifications towards her. She will get every penny back that she gave as a down payment and no harm will come to her credit history.

Feel free to e-mail me if you have any other questions. I assume that since you said South Bay Mini-then you live in So Cal? Let me know because I can try to help you.

Answer 2

Depending on what state you are in, the dealer should have given you a copy of the contract that was signed by your girlfriend. If she signed the agreement and was not approved for the full amount of the purchase, shame of the finance manager for letting her leave with the car. If the dealer was the one who provided the finance deal they should have known this before she even left the lot. If her contract says 84 months @ $490 per month with no down payment mentioned your girlfriend may have a case not to pay anymore. But if she has not signed a contract yet, I would take the car back and visit another Cooper dealer. Just remember, always get pre-approved before you go car shopping, that way you know how much you have and that gives you the upper hand when dealing. By the way unless you are paying more than 10% of value of the car GAP insurance is a waste of money, it is just another way for a dealer to make a couple of extra bucks.

Answer 3

What happened is your girlfriend was not approved for the amount of the loan. The bank will only approve so much, and they capped the amount that they would finance. I am sure that in the paperwork that you signed, there was a form that said that in the event of the credit not being approved, she would have to return the car.

You can give them the car the car back, unless they are able to get the financing approved. You are not required to put more money down, that was not the deal you signed.

If you take the car back and refuse to give them any money, or to remove the gap or extended warranty coverage, I would bet that they will find some way to either get the loan approved!

Take the car back. Tell them that you are returning the vehicle and want any and all money she put down refunded. Once they see that she is willing to walk away from the deal, they will find a way to get it done as agreed. If not, you can get a better deal on the car elsewhere!! Those cars are not that rare that sticker price is the best you can do!!!

Answer 4

You've already gotten all the advice you need.

My 2 cents....

Like everyone has said, because you sign the contract doesn't mean it's a done deal. Every contract is SUBJECT TO CREDIT APPROVAL. So if the financing falls through, they can take the car back. If she doesn't return it, it'll be reported stolen and she'll go to jail.

They want more money upfront so less will be financed, which improves her chances of getting a loan.

If I were her, I'd return the car and get a '07 Lexus RX350 for around the same price.

And LoJack isn't necessary as long as you have comprehensive insurance. GAP is necessary for leased vehicles, not financed.

Answer 5

DO NOT GIVE THE CAR BACK AND DON'T GIVE THEM THE MONEY! A DEAL WAS MADE AND THAT'S IT!

The dealer knows what it's doing, and what it's doing is the dealer is trying get more $ from you! I know this because I know your car is not worth $32k! I bought my Mini with JCW kit, suspension upgrades, brake upgrades and all the trimmings and it costed me $35 OTD. If the dealer still try to get you for $, GO GET A LAWYER.

ONCE THE WALK OUT THE DOOR WITH THE CAR, THE DEAL IS DONE! YOU SURE AS HELL CAN'T GO BACK AND ASK FOR $2300 BACK FROM THE DEALER! HOW COME THE DEALER CAN ASK FOR ANOTHER $2300 FROM YOU?

There are consumer protection websites. Go check it out!

http://www.ftc.gov/ftc/consumer.htm

Good luck and BE STRONG!

Answer 6

once the contract is signed the deal is done, i don't think that a dealership would let you leave with a car only ASSUMING the bank will finance it. They should get this squared away before the car leaves the lot and papers signed, right.

Answer 7

Take the car back. Its not a good deal.
How you figured its under $32k?
$490x84months(7yrs)=$41,160 total payment for a $25,700 car.

You don't need GAP & extended warranty, its an extra incentive for dealer. Most cars have 3 or more years of warranty. You going to keep it all 7 years?