I went to a dealership and they told me I was qualified for financing through NISSAN...?

Question

So I signed all the paperwork that Saturday. They said that I have 2.9% APR for financing through Nissan, blah blah blah. So I was REALLY happy with that. A week later, I went back to cancel my extended warranty and the finance director casually says, "Oh, by the way, we weren't able to get your financing approved." A WEEK LATER. I had already signed the purchasing documents. I thought it was signed, sealed, delivered - binding and FINAL. So then they say, "But we did get you approved for a lesser loan amount - you just have to find a different car. And the interest rate is higher than 2.9%." WHAT?!!?? I tried to get financing through my credit union, but the interest rate is way higher! I talked to another gentleman at another dealership who's been in the business for a while, and he said that it's called an "On-Spot Delivery" and it's an illegal practice. Does ANYONE know anything about this? Is this NORMAL??

Answer 1

You can not be forced to accept a higher interest rate. If they can not get you financed at the agreed upon rate, you can return the vehicle, and get your trade and money refunded to you!

What happened there is the finance manager was unhappy about the loss of commission on the extended warranty, and was trying to make up the difference in interest rate!!

Spot delivery is legal. The dealer does this because he wants you to stop shopping! If they wait for the bank approval on the loan to give you the vehicle, you can change your mind or go to another dealer and beat the deal (even by $1) and they lose the sale.

Take the car back. Tell the dealer that you will not sign a new contract that has a higher term, rate, or payment. Get your money back and start over at another dealership!!

Answer 2

Spot delivery occurs when a buyer and a car dealer sign an installment sale contract for the sale of a motor vehicle and the buyer takes delivery of the vehicle “on the spot.”

The buyer agrees, usually by signing a rider to the contract, that the contract is void if the dealer does not assign it within a certain number of days.

The contract may further provide that if the contract is void, the buyer must either pay the balance in full or return the vehicle, pay for any damage, and sometimes pay rent or for “excessive mileage.”

On such a contract, the dealer has a choice whether to assign the contract. The dealer has sole control over the effort it will make to assign a contract.

A contract that requires a buyer to waive all of his or her contract rights and protections under the Motor Vehicle Sales Finance Act (Act) because the dealer is unable to take advantage of an optional assignment, is inconsistent with the Act.

A motor vehicle installment sale contract conditioned upon the contract’s assignment to a finance company violates the Act.

Such a provision is not enforceable. Also, a contract provision calling for the balance to be paid in full violates the Act.

Apart from such provisions and any other unlawful provision, the contract is not void. It is legally enforceable.

You are still responsible for making the payments as required by the contract. If the dealer requests that you return to sign a new contract, you are not required to do so.

Answer 3

It is done all the time, if you didn't have a trade you can give them the car back and owe them nothing.
Or go with whatever your credit union has for financing. You don't have too many options.

You need GAP insurance too, or you will be here in three weeks asking how you could possibly have a totaled new car that is worth $3,000 less than you owe on it.

Answer 4

If it sounds like a scam it ususally is.Go back to your friend with the experience and ask him this same question and what advice he would have.

Answer 5

Not good.