auto dealership resended financing

[david_johnson]

I purchased a car on sept. 17, 2008 from an oklahoma dealership to be financed. They informed me that due to my bad credit that i would have to purchase a newer vehicle for the loan to be bought. They called me back and told me that it was approved so my wife and I went back and purchased the car. The contract stated a $500.00 down payment and a term of 60 months. I took out teh extended warranty as well to protect my investment against costly failures during the term of the loan.
Today is sept 24, 2008 and the dealership called me and said they couldnt finance the car. It has been a week and i have insured the vehicle and driven it. They said that they knew it was bad new but i could get a cosigner or return it to them.
I purchased this car and signed teh contract in good faith that they had arranged for the financing and now was told that they may be able to do it if i pay more down or offer something on trade in.
I cant do either of these things and feel that they should be held to the contract that was signed.
Please advise me of my rights under the law in oklahoma in this matter.
Thank you in advance.

 

[Pheonix]

I had this kind of situation happen to me a couple years back. My husband (now ex) and I traded his firebird in for a used montero. We walked out of the dealership with a signed contract and what we thought was a decent car payment considering our credit. About 2 weeks later they called and said that they need us to bring them more money towards a down payment to get the bank to approve financing. I didn't understand, I thought we had financing; there was even a bank name showing on the contract. Turns out, that was a 'possible' approval and that bank wanted more money down, 2000. I didn't have it, so we brought the truck back, thinking we'd just take the firebird bad and chalk it up to a lesson learned. Problem was, they didn't have the firebird anymore (according to them), they had sold it, so we had no choice but to take the montero. I told them I didn't have 2000 and they said they could get me approved, but my payment would go from 415 to 675 a month. I couldn't afford that either, not for a used car, were they kidding me?! My ex lost his temper and yelled at the guy (8 salesmen had to escort him from the building - he was a pretty big guy...) anyway, i told the guy that i didn't care what he had or didn't have, we had a contract. well, it turns out there was a rider on it, which i had initialled, that stated that the contract would be void if financing was declined. so he was trying to get me to sign this new contract at 675. i refused. i told him he'd better call the guy he sold my car to and get it back. then he said they'd already paid the firebird off and i would have to give him the payoff to get it back anyway, so i didn't have a choice. I was freaking out. I was scared and i didn't know any better and he started threatening me with lawsuits. I called my dad to come pick us up, and upset cuz i didn't know how i was supposed to get to work without a car. (my ex didn't work - hence the ex part). my dad damn near took my head off that i would let them bully me around. long story short (too late) because they had signed the contract and approved me at a payment i could afford, they had to either honor it (despite the rider) or give back my firebird. they ended up just inflating the trade-in amount to reduce the amount being financed so that the bank would approve the loan. I walked away with the montero and a pledge that i would never again buy a car same day and never ever ever sign something w/o reading it no matter who was standing over my shoulder saying, 'its standard contract that says this and this and this, no need to read the whole thing'. YES - There is.

My point, read the contract and ALL the other paperwork you signed that day to find out whether or not it has the same kind of rider on it.

Funny ending to the whole thing, I drove by that dealershp about a week or 2 later and there was the firebird, all shiny and pretty, sitting in their lot. LIARS, they just figured they could intimidate me and get more money out of me. But honestly, if I'd had the 2000, it would've worked, cuz i would've paid it.

 

[jalancast]

Phoenix - good post. People should absolutely read all the paperwork and take their time when buying a car. Great advice.

David - I'm no attorney, but I worked as a finance manager at a car dealership for a couple of years (and as a sales manager for a few more). I can tell you that the dealership is allowed to send you out in a car without approved financing (known as a 'spot delivery') provided you sign a spot delivery disclosure of some sort. The disclosure states something to the effect that if the dealership can not obtain financing as described, you agree to return the vehicle as well as pay a mileage and daily use charge.

My advice - first, read every piece of paperwork that you've already signed carefully and make sure you understand all of it. Get help with anything you don't get - this forum is a great place for that.

Second, go back to the dealership, find out what they have to say, explain that you refuse to sign the new contract, and call their bluff. It sounds like the most you have to lose is $500. My guess is that they're desperate enough to keep a deal together that they will grant you some concession(s).

However, having said that, if your credit is bad, you might want to weigh their offer carefully. Sometimes the financing deal the dealership comes up with is decent. If you decide to work with them, check the selling price, interest rate, cost of the warranty, etc.

The process of fixing your credit starts today.