Car financing denied by the lienholder?

Question

I purchased a car 2 weeks ago. Ive put in 6,000 dollars and now the lienholder is denying my financing. They want the car back. How do i go about keeping my car or getting the 6,000 back?? Why would the dealer sell me the car and the lienholder deny me?

Answer 1

Read the contract.... it should say "SUBJECT TO LENDER APPROVAL".... which means the contract is null and void if the lender does not approve you. You must return the vehicle and get your $6000 back.

Next time get financing before going to the dealer to avoid this problem. Apply online at Capitalone.com or Eloan.com.

Answer 2

If they denied financing then they can't have a lien on the car. So now it is the dealership that will have to finance the car. In fact, they probably were the ones that financed it anyway. They have a habit of selling the loan contracts to different banks.

As said in the answer above me, get a lawyer and see what he has to say, but until the lawyer told me to give it back, I sure wouldn't take it in and give it to them.

Oh to put your mind at ease, should you give the car back, they will have to return your trade-in and return any expenses you are out. That would include your 6000.

Answer 3

There could be all kinds of reasons. Many of which could be the something you put on a finance app that later turned out not to be true. It could be the dealer fully expected you to get approved and funded from his experience and for some reason it did not. I am not accusing you of any wrong doing but I have see people supply phoy or give a phone number of their cousins job for proof of employment. You could call the finance company and ask them point blank why? They do have to tell you. If it is some type of dealer paperwork issue and no fault of yours then the dealer should be able to fix it. If they truly want the car back..( I don't think any car dealer does) then yes in most states you get most of your money back less any miles you drove. Most state attorney generals offices offer free advice in these matters you can usually fax the papers to a State attorney general motor vehicle complaint or help line. Many times you can look up the number on line.

Answer 4

Take a look at the contract. Chances are very good that the dealer is stuck selling you the car at the agreed price for the agreed down payment and monthly payments that you agreed to when you signed the contract. So before you do anything else, DO NOT give the car back. If you don't know a good lawyer, look in the Yellow Pages for one that'll give you a free initial consultation and show him/her the contract. Best of luck!