Finance Questions? Ask a Financial Expert for Answers ASAP
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There is no law regarding how long an auto dealership has to process and get a loan approved before it goes void. This is a dealership, by dealership decision. When you go to a dealership to buy a car, many times you will complete your paperwork for the purchase and for the financing and then for whatever reason of the banks choosing, they may decide you don't fit their requirements to obtain an auto loan and decline the loan. Auto dealers want to make their clients happy and therefore, will usually let them drive off the lot that day because you appear to fit the lender's criteria for getting a loan. However, until the loan is underwritten by the lender your financing is not yet in place. If the loan does get declined, most dealers will try to find alternative financing with a different lender. If a new lender can not be found, the deal will be void and the auto dealership will generally request that you bring the car back, or they may send someone to go pick it up. They will want to do this quite quickly too. Most dealers will also ask if there is anyone that can co-sign for you in order to keep the same financing terms and to try and come up with a way for you to keep the car. Just as mortgage lenders have been tightening up their lending guidelines so are auto dealers and many other finance institutions as well. Best of luck.Please let me know if I can be of any further assistance with this matter. Thank you for using Just Answer and please remember to leave feedback after you have clicked the Green Accept button. Have a great week.
So you have had the car for 30 days now and they still do not have financing in place yet? If they are able to secure the same financing terms that you originally signed your deal for, you may have a hard time getting out of the deal. However, if they can not secure the same terms of the deal you should have no problem. I would highly recommend that you review your paperwork very closely to see if there is any hidden language contained within that the terms of your agreement.
If you really want out of the deal and they have yet to secure financing at this point, you need to start demanding that they let you out of the deal as they have had plenty of time to secure financing. You may need to go all the way up to the head of the dealership, and maybe even to the owner of the dealership or the regional manager of the dealership (if the company is very large and has multiple branches). Explain that you have purchased a car, it has been 30 days, no financing has been secured yet and you want out of the deal now because of a breach of contract. You signed an agreement to finance your vehicle with a specific lender and they have not arranged for a loan with that specific lender yet after 30 days. If they continue to refuse to let you out of the contract, you may want to try and get an attorney. Let them know this as well, if they are adamant about not letting you out of the deal.
There are a possible couple of issues though. First, if you traded in a car, there is a good chance that they no longer have your car to get back to you. Second, if there is any language in your purchase agreement that states anything along the lines of the auto company being able to find similar financing from a new lender. Finally, you signed a contract to buy a car and as long as the terms of the financing are the same as what you originally signed you will probably have a difficult time getting out the loan. Best of luck. Please let me know if I can be of any further assistance with this matter. Thank you for using Just Answer and please remember to leave feedback after you have clicked the Green Accept button. Have a great week.