Consumer Protection Law
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Your rights depend on the nature and timing of your communications with the dealership or finance company that denied your loan. If, within ten days of the transaction, the dealer provides actual notification that your financing fell through, you are required to return the vehicle and the dealer is required to give your money and your trade-in vehicle back to you. However, if the dealer misses this window, as is often the case, the contract cannot be cancelled and financing must and will be provided.
Note that missing the window means not conveying adequate information to alert you of the issue. That can be either because you only received a general message on your answering machine that didn't leave any relevant details, or because you were sent a letter that was received after the three-day period expired.
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Does this mean they cannot take my car? I went in 2 days ago to bring another copy of my bank statements and nothing was mentioned at all. I was there for 15-20 minutes. What recourse do I have? Can I insist on the contract as is and make payments to the dealer if necessary?
Thank you for your reply.
Dealer is saying that they need to hold the car for 4-5 days on the lot until they can complete the financing.
Thanks for the information. How many days after the purchase were you informed that financing fell through?
Also, have you already brought back the vehicle? The normal process is not to bring back the car. If informed of the situation after the window closes, the best thing is to quietly wait until you receive your payment booklet from the lender.
Signed on the 10th, notified today, 29th at 2pm. Still have vehicle. I didn't think it was right. I feel that they don't like the real terms the loan was approved on. I was very upfront about everything. Ran my own credit before I went, and even had a terrible Roadloan check in my hand as a backup just in case.
Will they try to repo the car?
They cannot lawfully repossess the vehicle. Were you notified by phone?
At this point, your credit score is irrelevant. If you have a signed contract with the dealer, which I presume is the case because you have the car, the dealer ran your financing information at the time of purchase and determined that financing was available. On that basis, the dealer sign the deal. Absent notification of failure is financing by the 17th of the month, the dealer cannot take the car back.
Yes, by phone. I tried calling back, but they were all in a meeting. Good thing I guess, because it gave me time to investigate. I would have brought it back otherwise. Should I call them, or let it be for now.
If you have not had any direct contact with the dealer after they notified you, such would be the case if they left a message on your answering machine, forget about it. You will receive a payment coupon book from the finance company shortly.
Let it be my friend. Let it be.
Ok, thank you!! You have no idea how much I appreciate your answers. Very grateful!
You are most welcome!
Best of luck!
By the way, what kind of car did you purchase?
And the best to you too! Have a great evening :)
Hyundai accent hatchback. My first new car ever! Always bought used. Really like it.
Feel free to be in touch if you need anything further.
Will do. Thanks again!
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