my cousin brought a new car (no money down) and co-signed with her mother (my aunt). they got a really low rate for financing. then she tells me that the car company looked into her mother's credit and found out that the mother had accounts with them (that are closed, this was like years ago) and are trying to give her a higher interest rate. even though all the paper work was signed and she took the car off the lot. I told her that I should talk with the dealer but she doesnt want me to. and they told her that she has to sign a new agreement (which is $50 extra or give the car back) what do I do. they are making me upset and she is frustrated?
2007-02-27 06:35:33 · 6 answers · asked by Kingston 2 in Cars & Transportation ➔ Buying & Selling
The dealer did a "spot delivery", which is deliver the car, do the paperwork, without the bank approval.
Dealers have 10 days to get the contract approved, and if they can not, even though paperwork is signed, then they can demand the car back or resign of the paperwork that meets the terms of the lenders.
This is done by the dealer to get you out of the market, in love with the car, because typically people will come back in because they do not want to give the car back.
Legally, she either has to resign the paperwork, or return the car. If she refuses to resign, then the dealer can report the car stolen, for every dealer has the customer sign a delivery addendum allowing them the 10 day period to obtain financing. If financing can not be obtained, or the terms differ, then the customer then must resign the contract, or return the vehicle if the terms are vastly different than what was origionally negotiated.
Until the bank cashes the contract, there is no sale, no title will be issued, and the car still belongs to the dealer.
2007-02-27 08:20:28 · answer #1 · answered by Robert S 3 · 0⤊ 1⤋
If the car has already passed into your cousins posesssion and the financing paperwork is complete, then there is nothing the dealer can do. All decisions and agreements by either the buyer or the seller must be made before the purchasing contract is approved. Once the paperwork is done and your cousin has posession, the deal is over.
2007-02-27 14:43:00 · answer #2 · answered by Mrs. E 1 · 1⤊ 1⤋
I'm not sure, but I think that once you sign something, the dealer or buyer can't renig on the contract unless there is a consensus between both parties. Maybe you should try and find a law student/paralegal/lawyer that can further help you....
2007-02-27 14:44:33 · answer #3 · answered by theprototype_1 2 · 1⤊ 1⤋
It's between your aunt and the bank.
The dealership has NO SAY SO as far as financing unless THEY are the lien holder.
It's a trick my friend.... they undersold you the car and are trying to recoup something hoping someone is stupid enough to fall for it.
If they are NOT the lien holder -- it's THEIR bad luck. They're out of the picture.
.
2007-02-27 14:51:39 · answer #4 · answered by rob1963man 5 · 0⤊ 1⤋
They signed the contract as well. Let them take your cousin/aunt to court. They will lose.
2007-02-27 14:44:14 · answer #5 · answered by Anonymous · 1⤊ 1⤋
Give them their **** back! It's not worth you or her having a headache over it.
2007-02-27 14:40:21 · answer #6 · answered by Arnold 4 · 0⤊ 2⤋