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socrateaser
socrateaser, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 39145
Experience:  Retired (mostly)
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On Thursday night I bought a new car and traded in my old

Customer Question

On Thursday night I bought a new car and traded in my old car. I told them I wanted to have it finance thru my credit union. This was done at a major Toyota dealership. The finance person got the approval and did all the paper work and I sign all of the contract papers. They kept my trade in and gave me the new car. Then on toady I received a call from the dealership finance person who told me that even though had the approval that the credit union was not wanting to approve it and could go to a different finance company. But I have all of the contract paper work.
JA: What state is this in? And how old is the car?
Customer: Ohio brand new 2017 Toyota 4runner
JA: Have you contacted the manufacturer?
Customer: No
JA: Anything else you want the lawyer to know before I connect you?
Customer: Why would they give me the car and keep mine and have me sign all the paper work. Somebody made a big mistake and I am not sure what to do. Is there a breach of contract?
Submitted: 1 month ago.
Category: Consumer Protection Law
Expert:  socrateaser replied 1 month ago.

Hello,

What you're describing is fairly common with dealerships. The dealer wants to try to find a lender that will give the dealer a better percentage of the financing agreement. Whether or not this is actually lawful depends on the terms of the contract. You need to have a lawyer review that contract in detail to try to determine if the dealer's attempt to switch you into a different lender is lawful.

You could tell the dealer that if the credit union won't accept the loan that you want to cancel the deal and you want your car back, or the cash value stated in the purchase contract. The dealer may say that you can't cancel. Whether or not you can will also require a detailed review of the contract.

In my experience, most car purchase agreements permit the dealer to use a different lender, on the same terms as would have been provided with your chosen lender. But, if the dealer cannot find a lender to take the deal, then the dealer can cancel and you will have to return the car. At which point, the dealer will try to avoid paying you for your car, if the car has already been auctioned to a third party, and cannot be returned.

If that happens, then you will have to demand your money, and if you're refused, you may have to contact law enforcement and report the matter as a criminal theft.

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Expert:  socrateaser replied 1 month ago.

Hello again,

I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?

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