When purchasing a vehicle?

Question

If you purchase a vehicle and arent finianced can you turn the vehicle back in?? I mean how long do you have??
say the income to debt ratio isnt what the fianiance companies want..
The dealership said the companies they work with wont finaince due to income to debt ratio, wanted to know if there was anymore income or worst senario a co-signer...I mean does it really take more then one day to finiance someone with excellent credit???
Say they cant get a company to finiance what then they just turn the vehicle in and walk away???
How long does the dealership have to finiance you?

What if the payments go up?

Answer 1

What you seem to be describing is what is known in the industry as a "Spot Delivery." It's little more than a scam and is illegal in a growing number of states. Here's how it works.

You contract to buy a car but your credit is weak and the dealer can't get a quick committment from his usual pool of lenders. He reckons that he can find someone so he sends you out the door with an incomplete finance contract OR a conditional finance contract that gives him a few days to shop the financing.

Several days later, one of two things will happen. The dealer will call and say that there has been a problem with the financing and the payments will be higher than agreed OR he couldn't get you financed and he needs you to return the car. Most people will cave at this point and either sign a new finance contract or hand the car back to the dealer. If you turn the car back, the dealer will sometimes hit you with usage charges for the time and miles that you had it in your posession. DO NOT LET THEM DO THIS! The original finance contract you signed IS VALID and the dealer will have to honor it, even if it means that he will have to carry the paper himself. You may need to drag a lawyer into the fray to assert your rights but you do have a valid contract that the dealer will have to honor.

Of course, if you have a bad case of "buyer's remorse" and the dealer agrees to unwind the deal -- i.e. return all your monies and your trade-in to you -- then go for it. This is the ONLY WAY you can get a dealer to unwind a deal! There is no cooling-off period on a vehicle sales contract contrary to widely held belief.

Answer 2

This question only applies if you are seeking external financing. By external I mean through a bank or credit union and not through the Finance Manager at the auto dealership. If you are sitting with the Finance Manager, s/he will tell you if you will be able to drive away that day, will need to find a co-signer or will not be able to get the vehicle at all.

If you are seeking external financing, the dealership generally allows 3 days to finalize the deal. This is a rule of thumb, not a law or precedent. If you cannot get your financing for some reason, you will be obligated to turn the car back in. The penalty for doing so falls entirely on the buyer.

Each state has specific laws as to the amount that you can be held liable for in event your external financing falls through. Be sure to do you research if you are in doubt for any reason.

To combine the two points; it is illegal for a finance manager (in NY state at least) to allow you to sign and drive knowing that you are not going to be approved.

Good luck with your car shopping.

Answer 3

There aren't any time limits that I know of. Most people have a 3-day reconsideration period on contracts, but I'm not sure that applies to vehicle purchases. If you can't get financing through the sources you've tried, maybe you should try a credit union.