New auto loan purchase

S

sonyars

New Member
Jurisdiction
Georgia
I purchased a 2017 Kia Forte from a dealer and have had it for exactly 30 days now. I was actually co-signing for my daughter. We signed the contract with the DEALER and now they are wanting us to return the vehicle because they have not been able to secure a buyer for the contract. the finance director told me that if we didn't return the vehicle they would pick it up. We have not even had our 1st payment, which is not due until 10/23/17, per the contract we signed. My question is do we have to surrender the vehicle because they have not been able to get a buyer for the contract? Where are our options in this situation?
 
In your contact you will likely find a clause that addresses this. It is a fairly normal situation.
Yes, you need to return THEIR car. You will owe a prorated amount for the time you had it. This will be deducted from any deposit you paid and you could owe a remaining balance, or the full amount if no deposit was paid.
If you do not return the car you could get a repossession on your record that could make it even harder to get a new car.
It is best to cooperate and return the car immediately. You can then go to another dealer and find a different car. If your credit is not great you might have better luck at a used car lot.
 
mightymoose said:
In your contact you will likely find a clause that addresses this. It is a fairly normal situation.
Yes, you need to return THEIR car. You will owe a prorated amount for the time you had it. This will be deducted from any deposit you paid and you could owe a remaining balance, or the full amount if no deposit was paid.
If you do not return the car you could get a repossession on your record that could make it even harder to get a new car.
It is best to cooperate and return the car immediately. You can then go to another dealer and find a different car. If your credit is not great you might have better luck at a used car lot.
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Thank you for your quick response. I will certainly look at the contract in detail and go forward from that point. I didn't have to make a deposit because they use the rebates for my deposit. I'm very disgusted with this dealership and I will make it known to them.
 
I understand your frustration, but you should know that what you describe is very normal. You are allowed to take the vehicle on condition that financing is secured but it seems most people don't realize that. Something in your credit or your daughter's prevented the financing, and that isn't the dealers fault. The dealer tried to help and get the sale through.
 
mightymoose said:
I understand your frustration, but you should know that what you describe is very normal. You are allowed to take the vehicle on condition that financing is secured but it seems most people don't realize that. Something in your credit or your daughter's prevented the financing, and that isn't the dealers fault. The dealer tried to help and get the sale through.
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I do have another question, I did look at the contract and it states on it who the lienholder is. What part of that does this play in this situation?
 
Okay, so because the dealership is asking me to return the vehicle to them, should I just wait until Monday and speak with the leinholdsr to get things resolved? They only needed my daughters employment verification, in which if they called and left a message we could have gotten this all resolved.
 
sonyars said:
Okay, so because the dealership is asking me to return the vehicle to them, should I just wait until Monday and speak with the leinholdsr to get things resolved? They only needed my daughters employment verification, in which if they called and left a message we could have gotten this all resolved.
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I suggest you visit the dealer in person to discuss the matter.

Until you make the first payment, the dealer is on the hook, too.

However, as discussed, the dealer if unable to get financing, can demand you return the car.

This is not the fault of the dealer.

This happens all across the country.

Going forward don't take the car off the lot until you KNOW financing has been secured.

Beyond the inconvenience, you're likely to charged for mileage, usage, and wear and tear on the car.

That's also in the documents you signed.
 
army judge said:
I suggest you visit the dealer in person to discuss the matter.

Until you make the first payment, the dealer is on the hook, too.

However, as discussed, the dealer if unable to get financing, can demand you return the car.

This is not the fault of the dealer.

This happens all across the country.

Going forward don't take the car off the lot until you KNOW financing has been secured.

Beyond the inconvenience, you're likely to charged for mileage, usage, and wear and tear on the car.

That's also in the documents you signed.
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Ok, thank you for your help.
 
In the end, this may have been a good thing for you, @sonyars.

Co-signing for anyone usually leaves you holding the bag paying for something you can't use.
 

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