My freind bought a car 3 weeks ago, the car dealership just called and said the loan didnt go through .?

Question

My freind bought a car 3 weeks ago, the car dealership just called and said the loan didnt go through .?
now they want the car back, and the aztec he traded in they wont give him back, it was a $6,000.00 trade in. he took some trips in the new (bought used) car and put 5,000 miles on it. so they said there charging him one dollar per mile. am i wrong or should they not have given him the car with out the loan going through. he is going to see a lawyer today, but does he have any rights. just curious.

Answer 1

What does the written contract say? Usually whenever you buy a car, there is a written contract.

Answer 2

While it doesn't seem right and this situation probably only happens once every three years at any particular dealership, this can actually happen!! It can take up to three weeks for financing to go through depending on the lender. Even though, the financing company probably already approved the loan prior to delivery of the car, they may have come across some information that made them change their mind. I worked in a dealership for 5 years selling cars and only ever saw this situation once. It is not a situation a dealer ever wants to get into, they end up looking like the bad guy, the customer is livid, and the finance company has both of them by the balls. I wouldn't wish this situation on anyone. Your friends best bet is to get an attorney and try to work something out with the dealership.

Answer 3

You may be morally correct but legally wrong.

If the loan did not go through he owes that amount of money to the dealer. If he can pay it or borrow from someone else then he is in the clear.

If he cannot or does not want to produce the necessary money then it becomes more complicated. They have no right to keep his Aztec. It is quite possible that they have already sold it to someone else.They may be able to charge him a fair amount for mileage. $1 per mile is not a fair price.

Just out of curiosity how many miles were there on the odometer when he purchased the car. Take that number , multiply it by $1 and see how it compares to his purchase price.

In any event good luck to him and thank you for being such a concerned friend.

Answer 4

Tell him to talk to a lawyer. He doesn't necessarily have to sue, but he needs to know what the contract/sales agreement says about this. He better have it still, too, or he's at the mercy of the dealership.

The $1/mile that the dealership is quoting is outrageous. They're trying to scare him into not driving any more, to keep the miles off the car. Unless that's in the sales agreement, they're blowing smoke IMHO.

My guess is that the easiest way out of this is for him to arrange new financing. It may cost him more than what he set up originally. Then again, it may not. I wouldn't be surprised if the dealership got a kickback somehow.

Answer 5

Three weeks is a long time for them not to know if the loan was approved! Most car dealerships should know the same day. Especially if we're dealing with a trade in. DEFINITELY get a lawyer, He should be able to get his car back or another one of the same value unless the contract proves otherwise. This is nonsense to me and I smell a rat.

Answer 6

It actually happens quite often, when the loan isn't approved and it takes a long time, so the buyer already has the car. However, it doesn't seem fair that they would charge him AND not give him back what he traded in. I would get a lawyer.

Answer 7

It seems that the dealer made the mistake here and should absorb the depreciation on the car, or search for another lender. I'm assuming there's something referencing this in this in the paperwork he signed. Seeing a lawyer is a great idea because finance departments can be shady.

Answer 8

It happens all the time. It is your friends fault for taking the car without having a loan in place. Have your friend look around on his own to find a bank to give him a loan for the original amount. Then just buy the car that way.

Answer 9

Sounds like BS to me. What car dealership lets you take a car off their lot without proper financing? I've never bought a car that way.

Answer 10

I would advise him to definitely see a lawyer...they should have pre-screened him and secured the loan before he left the dealership

Answer 11

I don't understand. It seems to me like everything should have been ok before they let him take the car. Did your friend do something wrong? Is your friend telling you the truth? Looks like he needs to see a lawyer.