Purchased a used car from dealer told I need to return it 5 days later...Is this legal?

Question

I purchased a new (used) vehicle from a dealership last Friday, I signed the papers, insured and registered the vehicle then yesterday I got a call from the dealership saying I needed to bring the vehicle back because they had not received funding yet. Is this right? Legal? Isn’t the funding suppose to be approved prior to me signing the papers, picking up the car, etc? Do I have to return the vehicle?

THANK YOU everyone for your all your great feedback. The dealer told me they had secured financing through CitiFinancial (I live in Mass) I signed all the paperwork, nothing stating that if I didnt get funding I would return the car, etc. they had me to go to my insurance agency & get a binder and they went to the registry for me to register the car. I got a call at 5pm that my car was ready to pick up I picked it up drove it around for 5 days then received threatening phone calls that I had to return the vehicle or CitiFinancial was going to forward me to their fraud department & report the car stolen because their "lien code" was on the car which I think that is complete BS because I looked on my paperwork & JPMorgan is the lien holder. I have never experienced anything like this in my life I have purchased many vehicles and once papers are signed, etc. the vehicle had always been mine I thought they did all their leg work before having papers signed, etc.

Answer 1

Most dealership have you sign a waiver that states if they can't obtain financing for you that you have to return the vehicle. Did they give you a copy of the finance contract? If they did and you did not sign the waiver they have guaranteed the loan and may have to honor it themselves in your state. I would ask to see the waiver and when I go to do it, I would not drive the car your purchased as they may have extra keys to it.

What did you mean by you registered the vehicle? Did they provide you with the title so you could go plate and register the vehicle?

You may want to ask them why they have not been funded and what documents they may need you to provide to help them. Many sub prime loans require extensive documentation for the dealership to get funded and you may just need to provide a most recent paycheck stub, copy of drivers license, phone or utility bill to help them finish the process.

Please feel free to e-mail me directly with further details after speaking with the dealership and I will be glad to coach you through this.

Good luck!

Answer 2

What happened is you were "spot delivered" meaning that they let you have the vehicle without a final approval of the loan. The would have had you sign a form that says that if the financing is not approved, you will return the vehicle and get your down payment and or trade in back!

This is legal! You need to return the car, or arrange financing through your bank or credit union if you want to keep the car!

Answer 3

This is the first time I have ever heard of anything like that.....dealers always make sure your loan is approved before you can take a car off of their lot. Once the loan is approved it is up to the fianance co and the dealer to get the money....it is not your responsibility after you have signed the papers.
Are you sure you are getting the right story from the dealer???
This sounds wacky to me.......you might want to call the company that financed your vehicle and see if they found out something after the fact that denied your loan*********

Answer 4

you can cause them some pain. If you had bad credit and they thought they could get you approved some dealers as they say roll the dice and let you take it. Tell them no everythings signed and call a lawyer im not sure about the contract cause the bank didnt approve it so what i would do dont bring it back and call the bank you were suppose to finance though.

Answer 5

if it was me i would call the bank and ask them whats up,
or callthe dealer and ask them who the finace company is,
then call them,
if they do not tell you who the finace company is then call
an attorney.