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Barrister
Barrister, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 37089
Experience:  Attorney,16 years experience in consumer protection areas
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I went to Galpin Ford and and purchase a work truck on

Customer Question

Hi my name is***** went to Galpin Ford and and purchase a work truck on Friday night and the truck was not ready but they made a contract for 0 interest and I sign with a 3,000 down payment. They let me borrow a used truck over the weekend and Monday around 5pm they said I was not approved for 0 interest, and that I need to give 14,000 down to get approved because the bank declined me. What kind I do.
Submitted: 9 months ago.
Category: Consumer Protection Law
Expert:  Barrister replied 9 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very 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 or ordinances and type out an answer or reply,but rest assured, I am working on your question.

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Have you paid anything yet for the truck?

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And you signed both a purchase contract and a financing contract, correct?

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thanks

Barrister

Customer: replied 9 months ago.
I gave 3000 down payment and signed both a purchase and a financing contract. With my monthly amount. This morning I am on the way to return the truck they let me barrow over the weekend what should I tell them.
Expert:  Barrister replied 9 months ago.

Ok, this is the problem that you are going to run into.. 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 financed some other way. 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.
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So your recourse here is to either find financing elsewhere or see if they can get you financed through them (likely at a higher rate). If you back out, they can keep your deposit, sell the vehicle at auction, and then try to sue you for any deficiency between the auction price and what you agreed to pay.

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Would they actually sue you?... probably not due to the time and money involved in hiring an attorney to represent them, but it is possible.

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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