Contract cancellation after 10 days period

[DedMorozzz]

Jurisdiction

California

Hi all, I have some issues with my new car, I hope you can help me with it.
Some pre-conditions: I'm new in the US, I have an H1-b visa and empty credit-history.

What happened, 14 of December I bought a car. Total price is 50k. I made a down-payment of 39k and for 11k I made a loan. Few days after purchase the dealer-center asked me for some documents for the bank, which I provided. But after some days, the dealer-center called me again and asked to pay a full price, because they have some issues with the bank (bank asked for a land-line phone to verify my employee status, our company doesn't have it). And I answered - no, because I need a loan for my credit history

After 14 days, from the day when the contract was signed I got a letter from the dealer-center, with a request to return a car (per the contract they have only 10 days to make that request). The notice of contract cancellation dated 28 of December (though I received it 31 of December, nice New Year mail).

What should I do in this situation? All information which I provide for the bank is actual and valid. They ask to return a vehicle after a 10 days period. Can I ignore them?
Thank you!

 

[Zigner]

I would advise them that you do not believe that have the right to cancel the contract at this time and ask them to advise you, in writing, why they believe they do.

 

[DedMorozzz]

thank you, I will do it! If they can't cancel the contract, what will happen with the loan in 11k? Will it be a discount for me?

 

[mightymoose]

I would add that ALL communication regarding this be done in writing by both parties.

Meanwhile, why not try and secure your loan elsewhere so you can pay off the dealer? You are not limited to the dealers financing.

If you come up with the money they will gladly go away.

 

[adjusterjack]

thank you, I will do it! If they can't cancel the contract, what will happen with the loan in 11k? Will it be a discount for me?

Carefully and thoroughly read and understand every word of your contract. Determine if you only applied for a loan or got the loan. It might turn out that the deal was subject to approval of the lender in which case the dealer would be in the right in spite of that 10 day thing.

Everything is about the words on the paper.

 

[Zigner]

It might turn out that the deal was subject to approval of the lender in which case the dealer would be in the right in spite of that 10 day thing.

The "10 day thing" is referring to California law on "spot delivery". The contract cannot violate the law by extending that period. If the dealer hasn't obtained financing in that 10 day period, and hasn't required the return of the vehicle, then the dealer becomes the lender.

 

[Zigner]

thank you, I will do it! If they can't cancel the contract, what will happen with the loan in 11k? Will it be a discount for me?

No, the dealer will become your lender - you still owe the $11k. As suggested above, it might be wise to try to obtain financing through a different lender...you may even get a better rate.

 

[DedMorozzz]

Thank you for all answers!

No, the dealer will become your lender - you still owe the $11k. As suggested above, it might be wise to try to obtain financing through a different lender...you may even get a better rate.

When i applied for loan, dealer-center made around 10-12 hard pulls, and reduced my credit score on ~20+ points
Currently i have 687 TransUnion / 696 Equifax score
We made a contract with rate = 18.7% (!)

Can you advice any financial organization which can provide a financial for last 11k?
And mb you know rough estimate for loan rate?

Also, if dealer center will be my lender, it will be a loan for me? And will my credit history grow after each payment? Or dealer-center will send bills, just bills, without credit history..

 

[army judge]

Also, if dealer center will be my lender, it will be a loan for me? And will my credit history grow after each payment? Or dealer-center will send bills, just bills, without credit history..

As several have suggested read every document completely before proceeding.

If, after reading everything, you need to speak with the dealer's finance representative.

There is not much people having NOT read your documents can offer, other than read everything, attempt to understand everything, discuss your concerns with the dealer, and/or HIRE yourself a lawyer.

 

[Zigner]

Thank you for all answers!

When i applied for loan, dealer-center made around 10-12 hard pulls, and reduced my credit score on ~20+ points
Currently i have 687 TransUnion / 696 Equifax score
We made a contract with rate = 18.7% (!)

Can you advice any financial organization which can provide a financial for last 11k?
And mb you know rough estimate for loan rate?

We don't do advisors and we're not in the loan business. Talk to any local banks or credit unions...shop around.

Also, if dealer center will be my lender, it will be a loan for me? And will my credit history grow after each payment? Or dealer-center will send bills, just bills, without credit history..

I have no way of knowing, except to say that it's extremely unlikely that they're required to report the loan to the credit bureaus.

 

[Zigner]

When i applied for loan, dealer-center made around 10-12 hard pulls, and reduced my credit score on ~20+ points

My understanding is that the first pull in a certain period of time (a day or two, but I don't know exactly) is what affects your credit score. The algorithm factors in the fact that shopping for a car may generate several inquiries in a short period of time.

 

[adjusterjack]

empty credit-history

Currently i have 687 TransUnion / 696 Equifax score

Not exactly empty credit.

Can you advice any financial organization which can provide a financial for last 11k?

Any bank or credit union, you just have to ask. You can probably do a lot better than 18.7%. That's just nuts.

And if, for some reason, you can't get a loan for $11K just pay it off if you have the money. Your credit score will take care of itself over time.

 

[PayrollHRGuy]

Any bank or credit union, you just have to ask. You can probably do a lot better than 18.7%. That's just nuts.

Yes, it is. I just had an employee get a 9.4% car loan with a 650 score and they didn't have near the down payment the OP had. It was with a local credit union.

 

[DedMorozzz]

thank for all answers, finally this story is finished
financial organization contacted with my employer and received all necessary confirmations. Also asked me to provide last 2 salary invoices and that was enough
So, i have a loan in 3 weeks after real purchase date

Not exactly empty credit.

yes, but bank didn't see this score, because my account too fresh. They need at least few months of score, before this period, they see nothing..

Yes, it is. I just had an employee get a 9.4% car loan with a 650 score and they didn't have near the down payment the OP had. It was with a local credit union.

thank you, but i think it will be possible only after 6 months (i don't know why exactly 6, but few people mentioned this period). Current rate will be for next half-year

 

[PayrollHRGuy]

thank you, but i think it will be possible only after 6 months (i don't know why exactly 6, but few people mentioned this period). Current rate will be for next half-year

The only reason that you shouldn't be able to refi is if there is a loan with an early out charge. But if you don't want to take the time to both save yourself some money and get out of this mess it is worth checking out.

What unknown people mention means nothing.