Car Dealer Wants To Talk About Car Loan
“Here is what seems to be a potential car dealer horror story… I went to a dealership last week and bought a used car and opted for the dealer financing. So today I got a call back from the dealer asking me to come in to go over some “stuff” about the car loan. I asked him what he meant by the word “stuff” that we need to “go over” he wouldn’t give me a straight answer. He did say that he got the loan approved at a better rate but when I asked him what rate it was, he just said to come down and the finance guy will give me all the details.
Now I am thinking that they are either going to request a larger down payment, or leave the down payment as it is but increase the interest rate which would give me higher monthly car payments…or they want to lower the monthly payments by extending the term of the loan to beyond the current and agreed upon 5 years. Of course I don’t want any of those things.
My questions is: Can I get the car I traded in back? I would really love to back out of this deal because the car I bought from them isn’t running well.”
Well, if they already have you approved, then if you refuse to sign the new contracts, they can just leave the old ones in place, assuming they are valid. The only way you can back out of this is if your current contracts are void due to a rejected loan by the lender.
Since you took delivery, the option to back out is not in your hands anymore. It will take a specific situation for you to be able to return the car. Basically if the dealership wants you to sign new papers and you refuse, then if the original contracts are valid, you can not back out. They can legally hold you to the original contracts as long as they have been approved. Good luck and I hope this helps.
That car dealer horror story is EXACTLY why I strongly advise you to NOT get a car loan from the car dealer. Instead get one from an outside source like your own bank or credit union.
What if the business manager who signed the original loan contract signed off that it was null and void?