My son got a new car last week and now this week they called and said that he does not qualify. Does he have any recourse. Can they just wait a week and say no deal?
The vehicle dealer gets the customer excited about a vehicle, promises unbelievable credit terms, the two parties sign a contract that includes the financing and the sale, and the consumer drives away thinking they got a great deal. Less than 10 days later the dealer's finance department contacts the customer, and explains apologetically the unbelievable financing was exactly that -- unbelievable.
However, the finance department promises it can find a loan at a slightly higher rate, and asks the customer to return to the dealership to sign a new agreement.
First, allow me to make an editorial comment: In an era with instantaneous communications and online, real-time credit reports, it is preposterous for a vehicle dealer and its financing partners to take more than a few minutes to decide what rates to offer each potential customer. We should recognize these denials of credit for what they are -- a scheme where the dealer gives the customer a few days to become accustomed to a vehicle, decompress from the stress of vehicle shopping, and then prey on their eagerness to finalize the process and ignorance of the law to change the terms of the original sale in the dealer's favor.
What should you do if the dealer's finance department tries to bait and switch on finance terms? First, review the contract carefully. Does the contract allow the dealer to escape from the contract if the original financing is not approved? If not, then you are under no obligation to return to the dealership to sign a second contract.
If the contract contains an escape clause, then you should consult with an attorney in your state to learn your rights under your state's laws. Your state may allow you to return the vehicle and receive all or substantially all of what you have paid the dealer.
I hope this information helps you Find. Learn & Save.