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Barrister
Barrister, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 33708
Experience:  Attorney with 15 years experience in various consumer protection areas
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I tried to finance a car and they did to me the "spot

Customer Question

I tried to finance a car and they did to me the "spot delivery". They said it was all approved, gave me the car and told to come back other day to finish paperwork. Then i received a call from them saying that i had to put some money down, etc. I questioned why because the sales person told me that it was approved. They said there were some documents problems, which is a lie, and then asked me 1500 down payment to get it done. After that, i went to the dealer and payed 500 dollars, because i didn't have the total amount. Only then, i discovered i was a victim os Spot Delivery. Please help me, they are expecting that money tomorrow , 01/11\2016. Help me, i don't know what to do
Submitted: 10 months ago.
Category: Consumer Protection Law
Expert:  Barrister replied 10 months ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes and ordinances and type out an answer or reply, but rest assured, I am working on your question.

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I hate it when we have customers with this problem, as we see this dozens of times a week on the JustAnswer site. Unfortunately, spot delivery practices, while unethical, aren't illegal in NJ. The Federal Trade Commission has been trying to get this practice outlawed for years, but has been unable to do so. In a vehicle purchase, there are typically two separate contracts that are entered into by the buyer. The first is the purchase contract that says that the buyer will buy the vehicle from the seller for a set price. The second is the financing contract that states how the buyer will pay for the vehicle. They are not dependent on each other and if the financing falls through, the buyer is still responsible for paying for the vehicle either by financing through the dealer or by obtaining their own financing elsewhere.
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It is common practice for dealers to do this, but the contracts generally always make it clear that if financing cannot be obtained, then the car will need to be returned. Standard (boilerplate) contract language says that financing is subject to third party approval. If your contract states something like that then you would not have recourse.

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In a situation like this, when the buyer signs the purchase contract, they are bound to buy the car. The point to remember is that the dealer merely sold you the vehicle. Financing is generally not handled by the dealer ... the dealer merely helps you obtain financing as a courtesy. Accordingly, if financing falls through, then that is an issue that the buyer has to resolve on their own with alternate financing..

Whether financing is through someone the dealer contacted or through the buyer's lender, the contract is binding. There is no right of rescission in a vehicle contract unless it is expressly stated in the contract.

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However, you should check the contract, because it is possible that the dealer guaranteed financing at a certain rate. If the dealer did that, then it must give you that financing or it would be in breach of contract. If not, then you will have to either finance the vehicle with the dealer's finance company, finance it through your own lender, or return the vehicle and potentially be held liable for any deficiency if they have to sell the car at a loss.

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I am very sorry that I don’t have better news, but please understand that I do have an ethical and professional obligation to provide customers with legally correct answers based on my knowledge and experience, even when I know the answer doesn’t make the customer happy...

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thanks

Barrister

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