A friend of mine is purchasing a car. He settled with the dealer on a 8.9% interest rate and signed the contract (for 8.9%). The dealer then came back and told him that they had to do a 10.9% rate but he refuses to buy it at that price. They have the contract however, and say that they will not let him out of it while they continue to try to get the 8.9%, but it could take up to 3 weeks before they have an answer. Is there any way for him to be able to return the car now? I have no experience in this type of law so I can't help him...
2007-05-08 11:55:36 · 9 answers · asked by LawyerBarbie 2 in Politics & Government ➔ Law & Ethics
That is a common tactic for car salesmen. Your friend should call the state Division of Consumer Affairs. It might have a different name in your state, but he should file a complaint. He can not be forced to pay a higher rate than he agree to.
2007-05-08 12:01:49 · answer #1 · answered by lcmcpa 7 · 4⤊ 0⤋
Your friend may not have an actual purchase contract. Some dealerships have you sign an agreement that lets you take the car home pending approval of financing. If this is the case, then bring the car to the dealership, try for a Saturday, a busy day. Go inside and ask to see the manager. When he comes over tell him you need to return the car since he is not able to secure the financing discussed. Do not take no for an answer. Raise your voice a bit if he pushes back. Say - I need to return this vehicle as you did not finance the car as you promised...period. Keep repeating this phrase each time he tries to slip away. Ask to see the owner, get his name. Ask that the manager call the owner right now so this can be discussed. If he refuses ask to call the owner yourself from his office. Again - be firm and consistent. When they agree to cooperate and take the keys, get a release that says the car is returned and you have no further responsibility or liability in this matter. If he won't sign it ...you write it up and hand him a copy. The point is to call them on this in front of customers on a busy day. They will not want the scene, bad for business and reputation. If they want to call the police have them do so. Have the cop mediate. Do not get overheated and yell....just be firm and clear. Good luck.
2007-05-08 12:15:25 · answer #2 · answered by tk 4 · 0⤊ 0⤋
He legally is entitled to the 8.9% rate. They can NOT change the terms after the contract is signed. They can NOT require the car be returned as long as the buyer makes the required payments at 8.9% interest.
Since legally they would be considered an experience person with this type of contract a court wouldn't allow them to claim we just made a mistake. If it was Joe blow down the street selling it to you that arguement could be made, but by someone who's business this is can't.
2007-05-08 12:01:21 · answer #3 · answered by caffeyw 5 · 0⤊ 0⤋
They can certainly take the car back. Read your paperwork carefully. You signed a bailment agreement. This allows the dealer to give you the car without financing being secured. If the financing falls thru, you have to return the car. It was never yours. Best thing you can do now is try to get your own financing. Start with your bank or a credit union. Your paperwork has a bill of sale or buyers order that shows the bottom line number after your down payment. That's what you need a loan for. Get on this now. The dealer is not going to let you drive their car while you figure out a loan.
2016-05-18 04:47:23 · answer #4 · answered by anya 3 · 0⤊ 0⤋
As you know, once a contract is signed, it is legally binding to both parties.
Now, did he sign the contract under the 8.9%, then the seller is legally bound to sell it to him at that price. He cannot "jack-up" the interest rate on a whim and try to get your friend to agree to it.
The only way I know of returning a car is if it is in violation of the State's Lemon Law.
Good luck to you.
2007-05-08 12:02:11 · answer #5 · answered by Sr. Mary Holywater 6 · 0⤊ 0⤋
Depends on your state. Some states have a 3 day "change of heart" period where either party can welch on a contract.
2007-05-08 12:03:24 · answer #6 · answered by csucdartgirl 7 · 0⤊ 0⤋
It depends on the contract that he signed. If there is an ambiguity, it is in your friend's favor.
2007-05-08 11:59:16 · answer #7 · answered by Anonymous · 1⤊ 0⤋
try this link
http://www.carbuyingtips.com/scams.htm
scroll down to scam #1 and read
PongSmart
2007-05-08 12:01:47 · answer #8 · answered by PongSmart 3 · 0⤊ 0⤋
Have him return it thats B.S.
2007-05-08 12:03:45 · answer #9 · answered by Matt G 5 · 0⤊ 0⤋