A friend went and purchased a new car from a major dealership. The car was purchased after 5pm, all papers were signed, and he left. After a couple of days, the dealership called saying that they couldn't get the loan to go through with any lender and they want the car back. Can they legally retake the car after all the contracts were signed? My friend has already taken out full coverage insurance on the car. Any help will be appreciated.
2007-05-17 17:44:50 · 8 answers · asked by cupidtoo 4 in Cars & Transportation ➔ Buying & Selling
Yes, this is legal - its a spot delivery - and most dealers will tell you when they are doing one. Unless she can get her own financing arranged, the car must go back
2007-05-18 06:27:47 · answer #1 · answered by Ann507 2 · 2⤊ 0⤋
Yes, they can. If they couldn't get a bank to buy the loan, your friend doesn't legally own the car.
What your friend got was a "spot delivery", meaning the dealer thought they were going to be able to make your financing work so they did the paperwork and sent your friend home with the car and hoped for the best when the banks opened the next day. There was a time not too long ago when you couldn't take posession of a new car until the financing was finalized, you would do the paperwork at the dealer, they would put a sold sign on your car, and you would wait until the deal was final with the bank and then come get your car. The business is too competitive for that now.
2007-05-17 17:53:04 · answer #2 · answered by Anonymous · 2⤊ 1⤋
Depends on the contract. When my mother got her truck they tried the same thing.The original loan was with a 3rd party that was promoting the dealer. After reading her contract and making a couple phone calls to the head loan officer at Albany Dodge in NY he was able to push the loan with Chrysler and actually got her a better rate.
Tell your friend to read the contract and contact the dealer to see if there are any more options.
Being polite will get you further then chewing them out too.
2007-05-18 15:44:25 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes they can take it back. The dealership still owns the car and your friend is basically driving a borrowed car. If he does not return it, the dealership can report the car as stolen. If he wants the car, the best thing he can do is that arrange his own financing through a bank or credit union.
2007-05-18 06:01:07 · answer #4 · answered by Jay P 7 · 1⤊ 0⤋
You made the deal on New Years Eve. then you certainly had the holiday and then the weekend. On Monday the broker tried to place the very own loan. You have been 'spot introduced' on the thirty first because of the fact the broker concept he could desire to get you finished. You signed and agreed to return the vehicle could desire to the financing no longer be authorized as shrunk. seem on the back of the contract. i do no longer think you may desire to have faith the reason of the turn down. The broker has different thoughts beside the credit union until your credit is iffy. yet while he observed you he stopped you from procuring over the weekend which gave him the unique probability to sell you a automobile. you may desire to offer it back. i could advise you save someplace else. a stronger quantity broker has greater clout with greater lenders.............additionally...i think of which you may desire to pass away that broker and examine out someplace else. i do in comparison to what you're saying that they suggested. sellers can save your utility to 10 or twelve lenders on an identical time below the guise of attempting to get you the acceptable deal, yet quite to work out the place they are in a position to make the main back end earnings. until the numbers in this deal are way out of line or until your credit sucks some greater useful broker gets you financed on something you like.
2017-01-10 05:50:50 · answer #5 · answered by taggert 3 · 0⤊ 0⤋
Yep, they can take it back. Your friend had not signed loan papers, therefore the car still belongs to the dealer. Car dealers arent going to put themselves in a position where they will lose a car, you can fight it, but you will lose.
2007-05-17 18:21:27 · answer #6 · answered by Anonymous · 1⤊ 1⤋
i would tell him to take it to court... i dont think they can take it back. especially if he has copies of the papers. It is the dealers problem for letting him take possession of the car without making sure they could get a loan approval.
2007-05-17 19:00:06 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Absolutely NOT, because all of the papers were signed. That is their problem and mistake, now they just have to deal with it. Sounds like the salesperson made a big mistake and the manager or owner is trying to cover the dealers butt. Report them to the Better Business Bureau or get a lawyer.
2007-05-17 17:50:47 · answer #8 · answered by Joey J 1 · 1⤊ 3⤋