Bought a car B4 dealer got financing approved, they sold the trade in - now what?

Question

My friend just bought a car, had a trade-in, signed the contract for a specific term, payment amount, trade in allowance, and new car price. But the "lender name" was blank. He's had possession of the new vehicle for a couple weeks and now the dealer is saying they couldnt get financing approved at the contract terms. They want him to re-sign a new contract with a higher payment, higher interest rate, and a longer term. They also SOLD his trade-in already.
What are his options now?
They wanted to give him a check for his trade in that would be short $3500 to payoff the loan, and he would have to give them back the car, leaving him with no car at all.

Answer 1

Boy that dealer screwed up royally!
The first thing he needs to do is call the lender that he had the loan with for the trade-in!
They still have his Title & aren't going to give it to anybody till they get the balance on the loan!
The new "owner" of your car can't register it without a title or a legitimate purchase order either.
He has the dealer over a barrel but he NEEDS to call his lender first. THIS LENDER WILL BE EXPECTING THEIR MONTHLY PAYMENT FROM HIM !!!!!
(The lender may actually take action against the dealer for him)(after all it's still the banks car 'till the loan is paid in full)

After notifying the lender, he should call the Better Business Bureau, then legal assistance

***EDIT
BTW - I just found this in one of my "news alerts"
http://www.ksby.com/global/story.asp?s=6440778&ClientType=Printable
look familiar?

Answer 2

Yikes. Seems to me that he should get some professional help (a lawyer) is the dealership isn't holding its end of the contract. See, if they hadn't sold his trade already, he could just opt out of the new contract b/c they'd give him his car back. But now that the dealership sold his trade (in essence finalizing the contract) they are responsible for getting the deal approved exactly the way its contracted or should face legal liability (b/c they can't go and give him his trade in back.) It would be foolish to take a check for the trade so DEFINITELY DO NOT DO THAT.

One alternative would be to maybe look at less expesenive vehicle. Wait. Screw that. The dealer messed this up now they should pay. If that means that they have to drop the price of the new car even more so that the payment and term stays the same so be it......they shouldn't have sold the trade w/out the deal being funded. And if they have to pay the bank to get a rate reduction they should do that to.

I'd recommend contacting the GM of the dealership AND the owner (you can find that guy 'cause his name is usually on the sign ie John Elway Nissan, Jim Click Ford etc.) Then get a lawyer.

In AZ, what the dealership has done is illegal.

Best of luck.

Answer 3

my brother had a similar situation quite a few years ago.He turned in his trade to be inspected as he and the salesman looked at cars,this went on for 2 days(my brother is very picky) When it was finally determined that they did not have a car that my brother wanted,my brother was going to look at another dealership,..............................these jokers had already sold the car he was going to trade.(my brother has the title to the trade vehicle to this day) Keep in mind that the trade was our grandfathers Hemi rRoadrunner. The dealer tried to buy my brothers silence with some cash and a rusy old Ford LTD. Long story short,....................he hired a lawyer.The dealer ended up paying the attorney fees giving my brother his pick of any car on the lot (new Caady Dealer) and 10 G cash. Still would have been better to have the Road Runner,but my brother had no clue what it was worth. To this day we don't know who ended up with gramps car.

Answer 4

get a lawyer

Answer 5

sorry but your friend got royally screwed!