I bought a car 3 weeks ago and put 2,000 down for the 12,000 dollar loan that I was "approved" for. I get a call yesterday from the dealer saying that there is a problem with the loan and I would have to return the car or get a cosigner for the loan. Not only that but I would lose the 2000 down payment because it would be considered a rental fee! I would expect this from a used car lot salesman but I got the car from a Regal dealership. What should I do? I know Florida is infamous for frauds and scams but is this even legal?
2007-03-31 01:52:07 · 9 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
Some contracts may state that you're responsible for a certain amount if the financing doesn't go through.
However, one thing here is, they should have known MUCH sooner than 3 WEEKS later that you, the buyer, could not be financed. This process takes only a few minutes for most banks, a couple hours for some. If they had to try several banks, and it was bought on a weekend, then it should have gone no longer than a week before they contacted the buyer to let them know they could not finance them. Waiting so long is unaceptable, and should be their responsibility for not notifying you much sooner.
Now, you have other options, one is of course to find someone who is willing to cosign the loan. You could also try your own bank or credit union for financing and forgo the dealers financing alltogether. Chances are, it'll be a lower interest rate anyway, unless they promised a rate too low and that's why they're doing this.
If you decide to take it back, or can't get yourself financed or find a person willing to cosign, then you have to go to the next step. How did you pay for the down payment?
If by cash, then you'll have to try to negotiate with the dealer to get your money back. Do not deal with your salesman, or the finance guy, they're little guys. Ask to see the general manager or dealer principal and deal with them. Explain your disappointment in them taking so long to notify you about this problem. Average rental car costs about $200 to $300 per week, which means no more than $900 for 3 weeks of use, point that out to them. Then try small claims court if that doesn't work out.
If by check, then if it hasn't cleared, put a stop payment on it, otherwise, you have to follow the same procedure as if you paid cash if it's cleared already (probably has since it's been so long).
If by credit/debit card, dispute the charge with your credit card company.
2007-03-31 06:09:16 · answer #1 · answered by Mark B 6 · 0⤊ 0⤋
This is not a scam. You have very poor credit and the dealer couldn't find a loan company to take your loan. However, the $2000 is something you should negotiate. Yes, you owe something for use and depreciation on the car, but probably not $2000.
2007-03-31 05:21:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you signed a note for 10K, and even if there is some reason they can legally recall the note, you still only owe 10K. They may be able to keep the downpayment if you don't pay off the car assuming that the contract you signed said they can do that.
BUT if you run down to the credit union and tell them you need a loan for 10K to pay off the car, then you will owe the credit union 10K and not the dealership, and everyone will be happy.
Its one of those lessons.... make sure to read a contract before signing it.
2007-03-31 02:40:13 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Contact the Better Business Burrow. Car dealers down here are no better than the old horse traders. Liars the whole lot of them.
2007-03-31 02:01:25 · answer #4 · answered by bill a 5 · 0⤊ 0⤋
I would be willing to bet that if you read through all the fine print on the sales agreement or loan agreements that you signed they are within their rights.
2007-03-31 01:58:43 · answer #5 · answered by The Colonel 1 · 0⤊ 0⤋
Tell them to return your down payment or you are going to court, or keeping the car.
2007-03-31 01:57:54 · answer #6 · answered by Dr Dee 7 · 0⤊ 0⤋
Call the Secretary of State. Tell them what happened
2007-03-31 02:01:30 · answer #7 · answered by james K 2 · 0⤊ 0⤋
you need to real all the small print on the contract you signed and then find a lawyer to ask some questions about your options. doesn't sound right but it really depends on what the paperwork states
2007-03-31 02:02:39 · answer #8 · answered by onlinedreamer 3 · 0⤊ 0⤋
Scam.
They cannot keep your money.
Talk to the DA's office.
2007-03-31 02:02:51 · answer #9 · answered by ed 7 · 0⤊ 0⤋