Once a finance contract has been signed by both a car dealership and a buyer can the dealership require the buyer to get a co-signer after everything has been signed? Is that even legal?
2007-08-24 10:08:23 · 6 answers · asked by Me Me 2 in Cars & Transportation ➔ Buying & Selling
The answer is Yes and No:
Scenario #1. You don't want the car: If the lender won't accept the contracts, then they are void. You don't have to get a co-signer. They can not legally require you to get one either.
Scenario #2. You want to keep the car. They can require you to get a co-signer because again, your previous contracts are no longer valid. I hope this helps. Good Luck and you can email with questions.
2007-08-24 11:42:08 · answer #1 · answered by The Auto Evaluator™ 7 · 9⤊ 0⤋
If you are "spot delivered" which means that you are given the car prior to the final bank approval of the loan, you would have also signed that you will bring the car back if the loan is not approved and the deal will be void. You get your trade, and /or down payment back, and they get the car back!
What most likely happened here is they can not get you approved. They want you to have a cosigner so that they can keep the sale. If you want to keep the car, you will either have to find your own financing, have a cosigner, or come up with more money down.
If you do not want to take any of these options, return the car and cancel the deal. Many times if you tell the dealer that if they can not get the deal financed, you will bring them back the car, they will find a way to get the financing approved!!!
If they want you to sign a new contract, make sure that the finance rate, amount financed, term of the loan and payments are exactly the same, (or less). You do not need to accept less favorable terms!
2007-08-24 17:19:55 · answer #2 · answered by fire4511 7 · 4⤊ 0⤋
It's legal. Until the financing goes through the deal has not been finalized. It's a classic sales technique. They did this because they figured you would try harder to get financed once you got a taste of what you wanted.
2007-08-26 04:39:47 · answer #3 · answered by T M 6 · 1⤊ 0⤋
A dealership that spot delivers a vehicle will have you sign an addendum to the contract indicating the provisional nature of the delivery. In other words if the bank turns you down or conditions the loan in any way you agree to meet the conditions or return the vehicle.
Typically even though you sign acknowledging receipt of a copy of this addendum you will not really be given one. This entire process is legally problematic in most states and your best bet is to walk away or consult an attorney.
2007-08-24 17:24:51 · answer #4 · answered by ? 1 · 0⤊ 3⤋
That is certainly unusual, they usually would know if they could finance you before they run you through all the paperwork. You still have the right to tell them that either they except you only on the contract or you walk away from the deal.
2007-08-24 17:15:26 · answer #5 · answered by Jeffrey S 6 · 1⤊ 3⤋
Once a contract is signed by all parties unless it is specified in the contract, it is breach of contract. All parties by law are required to fulfill their part. Read your contract closely and ensure that it is not in there in small print.
2007-08-24 17:18:58 · answer #6 · answered by Anonymous · 0⤊ 5⤋