What are the legalities with buying a car?

Question

I put in a credit app online. The dealership called me, I went to them to look at the cars.. They worked out how much my downpayment would be and how much my trade in value was. I'm a first time buyer, so I was required to have full coverage insurance. I told them it'd take a few days for me to get the insurance b/c I had to get the money. I came in a few days to sign all the paperwork for the car and give them the downpayment. I went back 3 days later (Friday) to provide my proof of ins (after paying $500 for it), signed the title over from my trade in to them and got the car. I receive a call from the dealership on the following monday adv i was not approved and had to bring the car back or get a co signor.

This does not seem legal to me? Anyone have any advise?

Answer 1

Take the car back, get yours back, get a credit from the insurance company. The Finance guy at dealership just created a reduced price demo. I bet if you call them on it they'll get it done. Also, don't go for it the finance rate has been increased from the original. Walk away.

Answer 2

You left out one piece of information: how old are you? If your under age you must have a co-signer, if you are of age then you have no credit history or very little, but they should have known this up front and told you this before you took the car. So contact your local Consumer Affairs, they are in the phone book or/and The Better Business Bauriel : they mite be able to help. As for full coverage insurance if you finance a auto you have to have full coverage; this is for the BANKS protection as well as your own. Also talk to the loan officer at your bank, they can give you a better idea what is wrong.

Answer 3

This is not all that uncommon. The dealer thought they would be able to arrange a special loan for you. Unfortunately that did not occur. There is nothing illegal about the ordeal.