a new car was purchase,signed contract. now later they can't finance at the rate now they want it back.?

Question

can they take it back after sign contract?

Answer 1

How long is later?? Most spot deliveries specifically state that the car is yours unless they can't get you financed. It's not illegal and there are A LOT of times that Saturday purchases will not be approved or even looked at until Monday. Deals are not automatically approved or declined by a lender unless the buyers credit is extremely great or extremely poor.

If a deal is not funded, then it's the dealerships car and they can and will come get it. If by chance the lender approved the deal and you have complete contracts , then you can take the chances on going with Bostonianinmo's advice. Choose wisely!!

Answer 2

Yes you have to give the car back. Take a look at the back of your contract and look for the paragraph entitled "conditional contract based on dealer obtaining financing" or something similar. You don't state why the loan wasn't funded so I can't suggest a course of action. Know this however, the attorney general won't get involved and there is no time limit that once run out makes the car magically yours. Most of the big boys will absolutely turn down in house financing offers.

Answer 3

Check with your state Attorney General's website. Some states have made the "spot delivery" process illegal. In many states you can force the dealer to "tote the note" even if the process isn't illegal.

Even on a weekend, there's no good reason that a dealer cannot get a financing commitment in a few minutes with the automated nature of credit approvals today. Some dealers will have you sign a note and then try to "shop" the note to various lenders looking for more profit. In most cases they'll find some taker even if your credit is totally in the toilet but it may eat deeply into his profit.

Contact a local attorney and see if they will write a letter for you, demanding that the dealer honor the note you signed whether or not he can sell it elsewhere.

I sold cars a number of years ago and every once in a while we'd get a knowledgeable customer and wound up carrying the paper in-house. Most dealers hate doing that (except the "Buy Here, Pay Here" variety) but you can usually force the issue if you push hard enough for it.

If you decide to turn the vehicle back in, demand that the dealer make you whole again, i.e. immediately return any and all funds paid by you and hand you back the keys to your trade-in, and cover any fees and costs you paid to tax and register the vehicle. Anything less than rolling the deal back to as if it never happened is unacceptable! That includes ZERO charges for the time you have had the vehicle in your possession and no charges for the miles that you've racked up or any damage or deterioration to the vehicle.

Answer 4

Yes you probably signed a form called a Macarthur statement so that if the bank turns down the loan you have to bring it back. They do that on spot delivery's. Yes you have to give it back. I would tell them that if you cant get the rate promised then you are going some where else most people don't and they take the higher rate and in most cases make the dealer more money. If the rate changes walk.

Answer 5

You bet they can because the car doesn't belong to you, it still belongs to the dealer. Better cooperate with them and give the car back.